Potbelly Expands in Phoenix: 5-Shop Franchise Deal Signals Growth Ambitions

Potbelly Corporation (NASDAQ: PBPB), the iconic neighborhood sandwich shop, has announced a significant expansion in the Phoenix market. The company has signed a franchise development agreement with Adam Warda, a seasoned professional with a background in business development, real estate, and as a Certified Public Accountant (CPA), to open five new Potbelly locations in the vibrant Phoenix area. This expansion aligns with Potbelly's strategic growth plan to increase its footprint through franchising in Arizona and other key markets nationwide.

The development of these five locations is expected to contribute to the local economy by creating job opportunities in the Phoenix area. Residents can anticipate announcements regarding specific locations and grand opening events soon. For more information about Potbelly Sandwich Works' available franchise opportunities, please contact Todd L. Owen, Sales Director, at (872) 250-6956 or Todd.Owen@Potbelly.com.

Potbelly's expansion in Phoenix is a strategic milestone in its franchise expansion efforts, with several key implications for investors:

1. Franchisee Partner Selection: The selection of Adam Warda as a franchisee partner is particularly noteworthy. His background as a CPA and experience in business development and real estate suggest a sophisticated operator capable of efficient unit economics and strategic site selection, critical factors for successful multi-unit expansion. This aligns with Potbelly's strategy of partnering with experienced multi-unit operators who can accelerate growth while maintaining operational excellence.
2. Market Potential and White Space: Phoenix represents an attractive market for expansion with several favorable characteristics, including strong population growth and demographic trends supporting fast-casual dining, relatively lower market saturation compared to other major metropolitan areas, and potential for strong unit economics due to reasonable real estate costs and robust dining-out culture.
3. Revenue Streams: This 5-unit commitment suggests confidence in the market potential and brand strength. Assuming typical fast-casual restaurant metrics, these locations could generate $3-5 million in annual system-wide sales when fully operational, contributing meaningful royalty revenue to Potbelly's top line.



The 5-unit commitment in Phoenix also demonstrates Potbelly's asset-light growth strategy, allowing for market expansion without significant capital investment. The focus on multi-unit operators rather than single-store franchisees typically leads to more efficient territory development and stronger operational consistency. This approach allows Potbelly to expand its footprint more quickly and with less capital investment, while also ensuring that franchisees have the resources and experience needed to operate multiple locations successfully.

Potbelly's expansion in Phoenix is a testament to the company's commitment to strategic growth and its ability to identify and partner with experienced franchisees who can drive expansion while maintaining operational excellence. As the company continues to execute its growth plans, investors can expect to see more announcements of franchise development agreements and new store openings in key markets nationwide.