Potbelly, the Chicago-based sandwich chain, has opened its first location in Winston-Salem, North Carolina, marking a strategic expansion into the southeastern US. The new store, located on South Main Street, is the first of several planned locations, with the owners eyeing Greensboro as the next target. The move comes as the company seeks to grow its footprint beyond its traditional markets in the Midwest and East Coast.
Expansion Strategy and Market Entry
The Winston-Salem location, which opened on April 5, 2024, is owned by local entrepreneurs John and Sarah Mitchell, who previously ran a small café in the area. The Mitchells signed a franchise agreement with Potbelly in late 2023, citing the brand’s reputation for fresh, customizable sandwiches and its growing presence in the US. “We saw a gap in the market for a fast-casual option that offers quality and variety,” John Mitchell said in an interview with local media.
Potbelly, which was founded in 1977, has seen steady growth over the past decade, with over 400 locations across 25 states. The chain has traditionally focused on urban and suburban markets, but recent data shows a shift toward smaller cities and towns. According to a 2023 report by the National Restaurant Association, 32% of new franchise openings in the fast-casual segment occurred in cities with populations under 250,000. The Winston-Salem expansion aligns with this trend.
Local Impact and Consumer Response
Local residents have welcomed the new store, with long lines forming on its first day. “I’ve been looking for a place like this for years,” said local resident Emily Carter. “It’s not just about the food — it’s about having a choice.” The store’s menu includes signature items like the “Mama Mia” and the “BLT,” along with a range of vegetarian and gluten-free options.
Business analysts note that the expansion reflects a broader shift in consumer preferences. “People are increasingly seeking convenience without sacrificing quality,” said Dr. Michael Thompson, an economist at Wake Forest University. “Potbelly’s model fits that demand, especially in markets where larger chains may not have a strong presence.”
Challenges and Future Plans
Despite the initial success, the Mitchells face challenges in a competitive market. Winston-Salem already has several established fast-casual restaurants, including Chipotle and Panera Bread. “We need to differentiate ourselves,” John Mitchell said. “That means focusing on customer service, local sourcing, and community engagement.”
The company has not yet confirmed details about the Greensboro location, but sources close to the project suggest it could open by mid-2025. The Mitchells are also exploring potential partnerships with local farmers to source ingredients, a move that could resonate with environmentally conscious consumers.
Regional Growth and National Trends
Analysts believe that the Winston-Salem opening could signal a broader strategy for Potbelly. The chain has been expanding in the South and Midwest, with new locations in Georgia, Tennessee, and Ohio in recent years. This regional focus may help the company diversify its revenue and reduce dependence on more saturated markets.
Industry experts point to the chain’s flexible business model as a key factor in its success. Unlike traditional fast-food chains, Potbelly allows franchisees to customize menus and branding to fit local tastes. This adaptability could give the chain an edge in smaller markets where one-size-fits-all approaches may not work.
What to Watch Next
The next major development will be the potential opening of the Greensboro location, which could happen as early as 2025. The Mitchells have also announced plans to host a “local flavors” event in the fall, where they will feature dishes made with ingredients from nearby farms. For now, the Winston-Salem store remains a test case for Potbelly’s strategy in smaller markets across the US.
