Potbelly Case Analysis

Potbelly Sandwich Works

Case Analysis

Introduction

The sandwich shop is a leader in the fast food industry as people are becoming more weight and health conscious. The sandwich industry does over $22B in sales, with 70% of that revenue going to the top 100 chains (Franchise Help). Even in a declining economy these shops were increasing revenue, up 5.2% in 2008 and up 6.8% in 2009 (IBIS World, 2012), with continued improvement in revenues each year. Potbelly Sandwich Works is one of the many competing restaurants in this particular segment of the fast food industry. Potbelly is a unique neighborhood sandwich shop that offers friendly service, high quality food and homey décor. They are aware of their customers wants and offer a simple selling strategy. All of their sandwiches are priced the same to allow customers to get what they want without having to worry about the price. Through analysis of Potbelly and the industry we will find opportunities to help Potbelly become a leading sandwich restaurant.

Problem Statement

Bryant Keil, Chairman and CEO of Potbelly Sandwich Works, wants to keep Potbelly’s authenticity and stay unique from other sandwich shops through their neighborhood feel, in shop experience and fresh made to order food. At this time, Potbelly does not offer franchising as many of their competitors do. As sandwich shops are continuing to grow and increase revenues, franchising is the biggest opportunity to take the company to the next level.

Situation Analysis

The Potbelly case study mentions it is corporate owned and operated with no franchising (Perreault et al., 2011, p.635). This is their number one opportunity compared to their competitors. Taking a look at their strengths, Potbelly has low prices, fresh, quality, made in store food, unique décor, live music and friendly customer service. With regards to their weaknesses, they are too scared to grow because they do not want to lose their originality and become like everyone...