Potbelly is a fast-casual sandwich chain that serves hot, toasted sandwiches made to order. The core product is a warm sandwich cooked in a high-temperature oven, customized with toppings and sauces; the menu also includes salads, soups, cookies, and shakes. As of December 2024, Potbelly operated 442 locations across 29 states — 346 company-operated and 96 franchised. Potbelly generates the vast majority of revenue from company-operated shops, where profitability is driven by same-store sales growth (especially traffic volume) and shop-level margins, which run in the mid-teens. Key cost lines are labor (~29% of shop sales), food (~27%), and occupancy (~11%). Franchisees pay a 6% royalty on gross sales plus fees, and franchise revenue is growing as Potbelly shifts toward a franchise-led expansion model. The company's long-term goal is to reach 2,000 U.S. locations, and as of year-end 2024, Potbelly had 276 franchise commitments not yet open. New shops target roughly 1,800 sq ft and cost approximately $750K to build, generating AUVs over $1.3M. Potbelly's Perks loyalty program is a key traffic driver, with digital orders representing over 40% of total sales. Potbelly positions its hot, oven-toasted sandwich as a functional differentiator from cold-sub competitors, paired with a neighborhood "dive bar" atmosphere it argues drives customer loyalty.