Pot Belly Unveils Big Expansion Plans: 1,550 New Restaurants

Chicago-based Pot Belly plans to expand to 2,000 locations nationwide, up from 447 currently, the company revealed in a conference call with analysts.

The move comes with a big change in business model for the soup and sandwich fast casual chain. Breaking from 45 years of tradition, Pot Belly says it plans on being 85% franchised over the next 10 years. Currently only 46 of the company’s 447 stores are franchises.

Pot Belly’s locations are now mostly in heavily urban areas, which is about to change. Growth in the future will concentrate on suburban locations with drive-thru capability. CEO Bob Wright told analysts in a conference call “that’s where the growth is. That’s where the white space is and, candidly, that’s where the customers are.” 

Pot Belly executives said that the company hopes to increase average annual sales per location to $1.3 million, up from about $1 million currently.