Atlanta-based comfort retailer operator RaceTrac has agreed to amass fast-casual sandwich chain Potbelly Sandwich Works in an all-cash transaction valued at roughly $566 million. The deal is anticipated to shut within the fourth quarter of 2025, pending regulatory approvals and different closing situations, based on Potbelly.
Bold progress plan
Potbelly, based in Chicago in 1977, ranked # 336 on the 2025 Franchise 500 and presently operates about 445 areas throughout the USA, with a mixture of company-owned and franchised items. Underneath the brand new possession, the model has set its sights on a a lot bigger footprint, with ambitions of rising to 2,000 shops nationwide. In recent times, Potbelly has labored to modernize its operations by up to date menu gadgets, refreshed retailer designs, stronger digital ordering channels and investments in operations and assist techniques.
RaceTrac, a family-owned enterprise, operates greater than 800 RaceTrac and RaceWay comfort shops throughout 14 states, along with roughly 1,200 Gulf-branded websites it acquired in 2023. The corporate has emphasised that Potbelly will preserve its distinct id after the acquisition, whereas benefiting from RaceTrac’s expertise in actual property, advertising and marketing and meals innovation.
Why RaceTrac is making this transfer
For RaceTrac, the acquisition marks a strategic push deeper into meals service. Comfort retailers have more and more regarded past gas gross sales and packaged items, recognizing that ready meals and drinks ship stronger margins and buyer loyalty. By including a recognizable restaurant model, RaceTrac can diversify its income, appeal to new prospects and compete with different comfort chains which have leaned into contemporary meals.
Potbelly brings a well known nationwide title and a menu that matches neatly into RaceTrac’s present retail footprint. It additionally offers a franchising platform that RaceTrac can leverage to develop outdoors its conventional Southeast U.S. stronghold. The corporate has already proven an urge for food for enlargement with its 2023 Gulf acquisition, and Potbelly provides it one other avenue for progress at a time when scale and model recognition are vital within the quick-service phase.
A broader development
The settlement is the most recent in a collection of main strikes reshaping the sandwich and fast-casual franchise panorama. In 2024, personal fairness large Blackstone acquired a majority stake in Jersey Mike’s in a deal estimated at roughly $8 billion, together with debt.
Additionally in 2024, Roark Capital bought Subway, one of many world’s largest restaurant chains by unit rely, in a deal price practically $10 billion.
And in 2021, Restaurant Manufacturers Worldwide (the dad or mum firm of Burger King, Tim Hortons and Popeyes) bought Firehouse Subs for $1 billion.
Taken collectively, these transactions spotlight a transparent development: Established however evolving restaurant manufacturers have gotten engaging targets for giant buyers and strategic consumers. The Potbelly-RaceTrac deal provides a brand new dimension, because it marks not one other personal fairness buy however a comfort retailer shifting deeper into the restaurant enterprise — a sign that new forms of consumers might more and more form the way forward for franchising.
