Potbelly expands into Georgia

The chain opened its first company-owned location in the Peach State as it aims to grow beyond 500 units this year.

Georgia market entry

• Potbelly entered Georgia on Sept. 1 with its first location in the state, according to a press release emailed to Restaurant Dive.

• The company-owned restaurant in the Peachtree Station Shopping Center in Chamblee — a suburb outside of Atlanta — is part of the chain’s plan to expand across the Atlanta metro region, the home market of owner RaceTrac.

• Potbelly will expand in the region through a combination of company-owned and franchised shops, the press release said. It previously signed a franchise agreement with a multi-unit operator to develop the market over the next seven years.

Potbelly, which was bought by RaceTrac for $655 million last year, will also open its first location inside a RaceTrac in Atlanta in the near future.

C-store locations aren’t the main focus of the chain’s growth strategy, however, and Potbelly will only open restaurants inside select RaceTrac locations, Jennifer Durham, senior vice president of franchising and development at Potbelly, previously told Restaurant Dive.

Growth strategy and plans

The chain is expected to surpass 500 units soon, with 55 franchised and three company-owned units projected to open this year, per its franchise disclosure document. It remains focused on reaching 2,000 units over time.

“Arriving in Georgia is a significant step in our brand’s long-term growth journey, as we continue expanding into new markets and introducing more fans to our neighborhood shop experience,” Adam Noyes, president at Potbelly, said in a statement.

The chain has signed several significant deals this year, including a 10-unit agreement to open restaurants across Orlando and Gainesville, Florida, markets, according to a separate, emailed press release. Potbelly has over 54 shops under development across Florida.

It also signed a 15-unit deal for shops in New Jersey, a five-unit deal in Mesa, Arizona, a 20-unit deal in Denver, Colorado, and a nontraditional deal in the works for the University of Iowa’s campus, according to an emailed press release highlighting deals completed during the first quarter.

Potbelly has rapidly expanded its franchised storebase since it began franchising a few years ago. It grew from 45 franchised units in 2023 to 122 in 2025, according to its FDD. Its company-owned count fell from 384 restaurants in 2023 to 348, but the bulk of that change came from refranchising 39 locations. Potbelly’s average unit volume was roughly $1.3 million last year, according to the FDD.