The acquisition of Potbelly by convenience-store chain RaceTrac Inc. is a done deal.
The Atlanta-based RaceTrac on Thursday said the previously announced $566 million deal has completed, marking an end to Potbelly’s status as a publicly traded company. RaceTrac is the nation’s 17th largest c-store chain, according to Restaurant Business sister-brand CSP Daily News, with about 800 locations under the RaceTrac and RaceWay brands, and another 1,200 as Gulf-branded outlets.
The deal brings Potbelly’s 445 units into the family-owned business, continuing the push to reach 2,000 shops.
“Potbelly has spent more than 40 years creating the neighborhood sandwich shop experience customers love, and we are excited to welcome this beloved brand to the RaceTrac family,” said RaceTrac CEO and Chair Natalie Morhous, in a statement. “This acquisition represents a natural evolution of our growth strategy, adding fast-casual expertise to our portfolio while maintaining the unique identity that makes Potbelly special. We’re pleased to welcome more than 5,200 Potbelly team members and franchise partners to our organization.”
As part of the acquisition, Adam Noyes, who previously served as Potbelly’s chief operating officer, has been named president of the sandwich chain, effective immediately.
Potbelly CEO Bob Wright will remain at the helm through the end of the year.
Wright had pledged to grow the mostly company-owned Potbelly with franchising, but the acquisition opens a new growth path for the brand at RaceTrac outlets.
Convenience stores are increasingly upping their foodservice game. For several years, fresh food-and-beverage sales at convenience stores have outpaced total sales in QSR restaurants and the foodservice industry overall, according to RB sister-brand Technomic.
It is probably no coincidence that earlier this month, Potbelly launched new wrap sandwiches, which are easier to eat one-handed in the car or on the go.
Amid macroeconomic headwinds, Potbelly has also been a bright spot, with same-store sales up 3.6% in the June-ended second quarter, including a 1.1% increase in traffic.
But there will be no third-quarter report. As of Thursday, Potbelly is no longer traded on the Nasdaq.
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