Potbelly, a fast-casual sandwich chain headquartered in Chicago, caught the eye of investors in 2013 when the company filed an initial public offering valued around $75 million, said Forbes. The company sold investors on the company's potential growth through expansion, and the restaurant is likely to accelerate its franchising efforts in the near future. Several elements of the sandwich shop's business strategy put the brand in an ideal position to take advantage of what the franchise model has to offer. Investors considering an venture in the food franchise business can example Potbelly for all the signs of a brand concept ready for growth.
Neighborly approach complements franchising
One reason that Potbelly could benefit from additional franchising efforts is based on the company's approach to marketing. Extensive research goes into to learning more about a neighborhood's interests and quirks before a Potbelly sets up shop. This research allows the company to develop custom marketing strategies that build loyalty between local customers and the brand. The Motley Fool reported that this approach provides the restaurant with a helpful advantage over rival fast-casual sandwich shops. Potbelly prides itself on its locale-specific marketing, and leveraging this strategy generates the word-of-mouth advertising necessary for new franchises to thrive in a hurry. Building relationships with nearby businesses and residents is also key for acquiring a base of loyal, repeat customers.
Middle East units reflect international appeal
In addition to franchising a number of its 300 locations in the United States, Potbelly has also broadened its marketing horizons and franchised overseas. The restaurant's international holdings are concentrated in the Middle East, according to American Securities. The first of two Middle East franchises expansions got its start in the United Arab Emirates' hub city of Dubai. One opened in the Dubai Mall while the other debuted in the Deira City Centre. Potbelly has also expanded its franchise network to Kuwait in light of its success in Dubai. The popularity of Potbelly in the Middle East also reflects how seriously the company takes its "neighborhood marketing" approach to building a brand presence.
New expansion efforts underway
Potbelly has made efforts to continue expanding and franchising in 2014, signaling that the restaurant's unit boom may be just around the corner. Recently the franchise opened its first Nebraska store in Omaha, partnering with partners and brothers Kendall and Craig Frantz, according to Fast Casual. The new owners are committed to getting the word out about their new franchise, and they have already hired 25 employees.
More Potbelly franchise stores are expected to open before the new year. Triad Business Journal reported that North Carolina's first Potbelly unit will open its doors this winter. Carter Spradling, a Greensboro native, expressed excitement about the prospect of bringing Potbelly's menu to his neighborhood. He and his wife have already hired 10 employees and will work to make the new Potbelly location a hub for franchise growth in North Carolina. The winter months will also see a new Potbelly opening in Sioux Falls, South Dakota, reported Kekoland Television. Franchisee and attorney Paul Goldhammer, a fan of Potbelly himself, noted that the community is a perfect fit for the sandwich shop's neighborhood-friendly attitude.