Potbelly Initiates Virtual Restaurant Partnership with REEF

CHICAGO) – Potbelly Corporation (NASDAQ: PBPB) (“Potbelly” or the “Company”) is taking a step to fulfill growing demand for their craveable toasted sandwiches, soups and freshly baked cookies. Announced today, Potbelly has partnered with REEF, the largest operator of virtual restaurants, logistics and proximity hubs in North America. The delivery kitchens create greater accessibility and convenience for fans to enjoy the Potbelly menu items they love.

“I’m incredibly excited to bring the Potbelly brand together with an innovator like REEF,” said Bob Wright, CEO of Potbelly. “We’re committed to unit growth in every market and with REEF’s unique operating model, we can expand more quickly into underserved markets. We are impressed with the REEF team and believe their virtual restaurants can play an important role in our unit growth goal of achieving 2000 total units in the next 8 to 10 years”.

The partnership with REEF continues the brand’s trending tech advancements. The Company recently unveiled a new website and app, key pillars of the Company’s ‘Traffic-Driven’ Profitability Strategic focus. Both are designed to elevate the brand’s position, expand availability and improve Potbelly’s digital experience.

“Much like its signature A Wreck paired with a freshly baked Oatmeal Chocolate Chip Cookie, Potbelly and REEF are a great combo. We’re thrilled to be teaming up with Potbelly to bring its delicious Sandwiches and Sides to more neighborhoods,” said Michael Beacham, President of REEF Kitchens. “In addition to serving the brand's dedicated existing fans, we look forward to introducing many new customers to Potbelly on REEF's innovative platform."

The Potbelly-REEF announcement arrives in the same year the sandwich brand is celebrating its 45th anniversary. A pivotal timeframe in the Company’s expansion, it recently announced the Franchise Growth Acceleration Initiative, a plan to reach 2,000 total units with at least an 85% franchise system. Potbelly is also emphasizing a refranchising initiative of corporate shops across all markets, aiming for approximately 25% of its corporate locations to convert to franchises during the next three years.

Potbelly Corporation is a neighborhood sandwich concept that has been feeding customers’ smiles with warm, toasty sandwiches, signature salads, hand-dipped shakes and other fresh menu items, customized just the way customers want them, for 45 years. Potbelly promises Fresh, Fast & Friendly service in an environment that reflects the local neighborhood. Since opening its first shop in Chicago in 1977, Potbelly has expanded to neighborhoods across the country, with more than 400 company-owned shops in the United States.

REEF transforms urban spaces into community hubs that create jobs and bring new goods, services and experiences to the neighborhood. With a proximity ecosystem of over 8,000 locations and a team that’s over 15,000 strong, REEF is the largest operator of parking real estate and delivery restaurants in North America. By connecting the world to your block, we’re making the place you live, the place you love to be.