---
title: "Potbelly Hits Hard Times as Sales Fall and 8 Locations Are Closed"
url: https://burnaze.com/article/8d94891b-91dc-4f79-9fbf-934feb0edaeb
source: "1851 Franchise"
original_url: https://1851franchise.com/potbelly-hits-hard-times-as-sales-fall-and-8-locations-are-closed-2709898
category: "Sandwich & sub"
industry: "Restaurants"
segment: "Sandwich & sub"
published: 2019-05-08T22:17:00.000Z
modified: 2026-11-01T02:30:29.589Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/f029a4e546e7d5be3d86a55e519ccc529826.jpg
---

# Potbelly Hits Hard Times as Sales Fall and 8 Locations Are Closed

**TL;DR:** Potbelly closed eight locations, including seven corporate-owned stores, due to a decline in sales and a focus on franchising. The company saw a nearly 5% fall in same-store sales, but reported growth in off-premise sales and a successful loyalty program.

*originally published in 1851 Franchise on 2019-05-08. [Read the original](https://1851franchise.com/potbelly-hits-hard-times-as-sales-fall-and-8-locations-are-closed-2709898).*

## Story

In efforts to focus on franchising, Potbelly has hit a low point. The company announced that it saw a nearly 5% fall in same-store sales and is closing eight locations, seven of which are corporate-owned.

Although the sandwich chain planned a revamped menu and partnership with DoorDash, the company is reevaluating its initiatives. Nation’s Restaurant News stated, “During the quarter, the company also closed eight underperforming restaurants, including seven company stores. Chief financial officer Tom Fitzgerald said in some cases the company had to ‘cut checks’ to get out of leases on stores that ‘we couldn’t find a way to make profitable.’”

However, Potbelly recently saw check averages increase as customers are buying more items. The company also reported that off-premise sales grew in the first quarter and the loyalty program is performing well with an additional 800,000 users since 2018 during the same quarter.

Despite the recent downturn, Potbelly is positive that sales will recover and are hopeful to see success in the rebranding down the road.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- franchising (topic)
- Nation's Restaurant News (publication)
- DoorDash (company)
- Potbelly (company)
- sales decline (topic)
- delivery partnership (topic)
- menu revamp (topic)
- Tom Fitzgerald (person)
- location closure (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/potbelly-hits-hard-times-as-sales-fall-and-8-locations-are-closed-2709898). Summarized by Burnaze (https://burnaze.com/article/8d94891b-91dc-4f79-9fbf-934feb0edaeb).