Famous Illinois-Based Sandwich Chain: Avoids Bankruptcy, $566M Deal

If you’re a Potbelly fan, there’s a lot happening with the Chicago-born sandwich chain, and it’s worth catching up on, especially if it's your go-to lunch stop.

First off, let’s clear the air: Potbelly has not gone bankrupt. The chain, founded in 1977 in Chicago, is being acquired by RaceTrac, the Atlanta-based gas station and convenience store operator, in a $566 million all-cash deal. That works out to about $17.12 per share, and the deal is expected to close in Q4 2025. Both companies will continue operating separately, but Potbelly’s leadership says RaceTrac’s resources will help the chain grow toward its ambitious goal of 2,000 locations.

CEO Bob Wright highlighted that RaceTrac’s resources will help Potbelly accelerate growth while preserving its signature neighborhood sandwich shop vibe. Headquartered in Atlanta, RaceTrac operates more than 800 convenience stores in 14 states and approximately 1,200 Gulf-branded fuel locations, employing over 10,000 people. RaceTrac CEO Natalie Morhous emphasized the complementary strengths of the two companies, noting that together they will be able to serve customers in even more meaningful ways. Until the deal closes, both companies will continue operating independently, and Potbelly’s board unanimously recommends that shareholders tender their shares in the offer.

The past few years have been tough. When the pandemic hit, Potbelly saw sales drop dramatically, forcing it to furlough employees, temporarily close dozens of stores, and consider permanently shutting up to 100 locations. Since then, the chain has permanently closed 16 restaurants and renegotiated 187 leases to stay afloat.

Get our free mobile app

Potbelly also tapped into a $10 million Paycheck Protection Program loan to help employees during closures, but later returned the funds, joining other public chains in giving money back so small businesses could access it, after public outrage.

Potbelly Tri-State Locations

Illinois

• Chicago: Lurie Children’s Hospital, Lincoln & Peterson, Diversey & Sheffield, Belmont & Sheffield, Wabash & Jackson, Rookery, Printer’s Row, State & Lake, 200 S Michigan, 1 N LaSalle, Hyde Park, Lincoln Square, Andersonville, Lincoln Avenue, Madison & Franklin, Canal & Taylor, Chicago Catering Kitchen, and more.
• Suburbs & other cities: Naperville, Oakbrook Mall, Oak Park, Oak Lawn, Northbrook, Highland Park, Glenview, Wheaton, Bolingbrook, Rolling Meadows, Schaumburg, Rockford, Peoria, St. Charles, Plainfield, Joliet, Machesney Park, Gurnee, Glen Ellyn, Lombard, Champaign, Crystal Lake, Frankfort, Evergreen Park, Elk Grove Village, Des Plaines, Crestwood, Buffalo Grove, Bloomingdale, Aurora, Algonquin, Geneva, North Riverside Plaza, Ford City Mall, Waukegan, Warrenville Cantera, Westmont, Wheeling, South Barrington, Summit, Taylor Street, Streeterville, Willowbrook, Tinley Park, North & Wells, North & Clybourn, Navy Pier, Merchandise Mart, Memorial Health, Loyola, Lake Bluff, Kildeer, ISU – Normal, Irving Park & Keeler, Homewood, Naperville Center, Old Orchard, 55 W. Monroe St., Southport Avenue.

Iowa

• Des Moines – Jordan Creek Drive-Thru
• Des Moines – CBD
• Ames – Iowa State

Wisconsin

• Milwaukee – Prospect & Ivanhoe, Bayshore Mall, Milwaukee Grand Ave
• Madison – U of Wisconsin, East Towne Drive-Thru, Mayfair
• Brookfield – Shoppers World of Brookfield
• Racine – Drive-Thru
• Lake Geneva
• Oak Creek
• Kenosha – Drive-Thru
• Green Bay – Drive-Thru
• Oshkosh

Potbelly isn’t out of the woods yet, but things are moving in the right direction. With the RaceTrac acquisition, ongoing closures under control, and promising second-quarter results, the chain is showing resilience. Fans across Illinois, Iowa, and Wisconsin can still find their favorite sandwiches at local shops, serving up the same great food you've come to love. Chances are, you may have one coming to your local area sooner rather than later.