Potbelly Sandwich Works is looking to roll into New Jersey, the birthplace of Jersey Mike's Subs, for the first time.
The Chicago-based sandwich shop has struck a 15-location development agreement with its first Garden State franchise group, PBNJ, a multigenerational restaurant operator led by Greg Dunn and Kelly Hart.
Potbelly, since opening its first shop in Chicago in 1977, has expanded nationwide and expects to open its 500th U.S. location this year, supported by 50 new shop openings and more than 100 franchised locations. It's in a tough arena. The sandwich-shop sector is a competitive one, with national players such Subway, Firehouse Subs, Jimmy John's and Jersey Mike's, whose headquarters is in Manasquan, New Jersey.
Potbelly’s multiunit franchise agreement with PBNJ over the next eight years aims to bring the chain's signature menu and neighborhood-driven experience across Northern New Jersey, including Bergen, Passaic, Essex and Sussex counties.
PBNJ's deal allows it to participate in Potbelly’s large-area developer incentive program, which supports experienced multiunit operators who commit to opening 15 or more shops within an eight-year development window. The program offers reduced franchise fees and royalty incentives for those who meet and exceed expansion milestones and open ahead of schedule.
PBNJ has more than 30 years of operational, leadership and franchising experience, most notably with the Wendy’s chain, according to Potbelly. Dunn, PBNJ's chief financial officer, has been with Wendy’s for 34 years, including eight years as designated market area president for its New York Co-Op.
Hart, PBNJ's CEO, grew up in the franchise business, with more than 20 years of hands-on restaurant leadership experience, mostly at Wendy's, Potbelly said.