The ATLANTA Headquarters Convenience Store operator, Racetrac, agreed to acquire the fast casual sandwich chain Potbelly Sandwich Works in a cash transaction valued at approximately $ 566 million. The agreement is expected to close in the fourth quarter of 2025, waiting for regulatory approvals and other closing conditions, According to Potbelly.
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Ambitious growth plan
Potbelly, founded in Chicago in 1977, classified # 336 in franchise 500 2025 and currently operates around 445 locations in the United States, with a combination of units owned by the company and franchisees. Under the new property, the brand has put its gaze on a much larger footprint, with ambitions to grow to 2,000 stores throughout the country. In recent years, Potbelly has worked to modernize its operations through updated menu elements, renewed store designs, stronger digital orders channels and investments in operations and support systems.
Racetrac, a family business, operates more than 800 convenience stores Racetrac and Raceway in 14 states, in addition to approximately 1,200 Gulf brand sites that it acquired in 2023. The company has emphasized that Potbelly will maintain its distinctive identity after the purchase, while benefiting from the experience of real estate in real estate, marketing and food innovation.
Why Racetrac is doing this movement
For Racetrac, the acquisition marks a deeper strategic thrust in the food service. Convenience retailers have looked more and further beyond fuel sales and packaged goods, recognizing that prepared foods and drinks offer stronger and loyal margins of the customer. By adding a recognizable restaurant brand, Raceretrac can diversify its income, attract new customers and compete with other convenience chains that have been inclined in fresh foods.
Potbelly provides a well -known national name and a menu that fits perfectly to the existing retail footprint of Racetrac. It also provides a franchise platform that Racetrac can take the opportunity to grow out of its traditional strength in the southeast of the United States. The company has already shown an appetite for expansion with its 2023 acquisition in the Gulf, and Potbelly gives it another growth route at a time when the scale and recognition of the brand are critical in the fast service segment.
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A broader trend
The agreement is the last one of a series of important movements that remodel the sandwich and the casual fast franchise landscape. In 2024, the private capital giant Blackstone acquired a majority participation in Jersey Mike’s in an estimated agreement at approximately $ 8 billion, including debt.
Also in 2024, Roark Capital bought Subway, one of the world’s largest restaurant chains for Unit Count, in an agreement for a value of almost $ 10 billion.
And in 2021, Restaurant Brands International (Burger King’s parent company, Tim Hortons and Popeyes) bought Firehouse Sub for $ 1 billion.
Together, these transactions highlight a clear trend: established but evolving brands are becoming attractive objectives for large investors and strategic buyers. The Potbelly-Racetrac agreement adds a new dimension, since it does not mark another private capital purchase, but a convenience retailer that moves more deeply in the restaurant business, a sign that new types of buyers can give more and more shape to the future of the franchise.
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