QSR Magazine: Potbelly to Shutter Restaurants, Ramp Up Franchising

This year has been a challenging one for Potbelly and the plan for 2018 includes a major shift in the way the brand will grow. According to a recent QSR Magazine article, the sandwich chain lost its chairman and CEO in August and reported a loss of $240,000 in the third quarter. The company is expecting less than half of the growth in 2017 in 2018 for expansion, and part of this growth will be an investment in franchised-unit growth.

“One of the pillars of our strategic framework is to be a great franchisor. However, we have historically taken a more measured approach, working with single-unit operators in secondary markets, and more recently, with small multi-unit operators,” said Mike Coyne, chief financial officer and interim chief executive officer. “As we look out to 2018, we are we recommitting ourselves to the franchise business, and we'll be allocating more resources toward this business.”

The company says it is working with a franchise consultant as well as multiple franchise industry players to build its industry knowledge, develop a strategy and accelerate growth. Potbelly also hopes to hire a franchise executive to spearhead this strategy moving forward.