---
title: "Potbelly's New Deal With Macy's Is the Latest in Restaurant-Retail Hybrids"
url: https://burnaze.com/article/434e9bce-35fe-4c99-abbf-59ba2b4fc2d0
source: "1851 Franchise"
original_url: https://1851franchise.com/potbellys-new-deal-with-macys-is-the-latest-in-restaurant-retail-hybrids-2711259
category: "Sandwich & sub"
industry: "Restaurants"
segment: "Sandwich & sub"
published: 2019-10-11T14:09:18.000Z
modified: 2026-11-01T02:29:23.259Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/ab61614a178ed6db104f598e59565e1e7832.jpg
---

# Potbelly's New Deal With Macy's Is the Latest in Restaurant-Retail Hybrids

**TL;DR:** Potbelly Sandwich Shop has signed a multi-unit franchise agreement with Macy's to open shops in department stores. This partnership is part of a growing trend of restaurant-retail hybrids, as retailers and restaurants seek to expand their presence and combat declining sales.

*originally published in 1851 Franchise on 2019-10-11. [Read the original](https://1851franchise.com/potbellys-new-deal-with-macys-is-the-latest-in-restaurant-retail-hybrids-2711259).*

## Story

**This week, Potbelly Sandwich Shop announced that it has** **signed a multi-unit franchise agreement** **to open shops in Macy’s department stores.**

**The concept of a retailer joining forces with a restaurant franchise is nothing new, everyone has seen a Subway inside of a Walmart. By entering existing retail space, restaurant franchisors can experiment with how they connect with customers, amplify their presence at little cost thanks to the popularity of their host company and expand into territories that may have been too costly to enter the traditional, brick-and-mortar way. After** **hitting some hard times earlier this year****, Potbelly looks to be finding new avenues to boost business.**

**On the retailer side, adding a restaurant partner may be an effort to help it** **combat the ongoing decrease in conventional retail shopping** **as** **Amazon** **and other online marketplaces continue to rise in popularity. Earnings at chains with stores located in U.S. malls fell 29% during the first half of 2019, according to data compiled by** **Retail Metrics****.**

**In the past, the National Restaurant Association has named retail-host restaurants as** **one of the fastest-growing segments for restaurants****, and the concepts raked in sales of more than $42 billion in 2017,** **according to the U.S. Census Bureau.** **As the foodservice industry becomes increasingly crowded, QSR and fast casual concepts are hungry for points of differentiation and nontraditional expansion strategies that aren't tied to pricey brick-and-mortar real estate startup costs.**

**Whether or not partnerships between brands such as Macy’s and Potbelly are set to become the new normal, these developments reflect the changing tides of the food service industry. As franchisors search for ways to compete with** **third party delivery** **and** **online ordering****, including opening locations in** **mobile kitchens** **and** **airports****, it looks like retailers may be the next stop.**

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- Subway (company)
- Amazon (company)
- restaurant expansion (topic)
- Walmart (company)
- Potbelly (company)
- National Restaurant Association (company)
- retail partnership (topic)
- Macy's (company)
- U.S. Census (regulator)
- multi-unit franchise agreement (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/potbellys-new-deal-with-macys-is-the-latest-in-restaurant-retail-hybrids-2711259). Summarized by Burnaze (https://burnaze.com/article/434e9bce-35fe-4c99-abbf-59ba2b4fc2d0).