Potbelly Enters Georgia: First Store to Launch 15-Location Atlanta Plan
Management and Business

Potbelly Enters Georgia: First Store to Launch 15-Location Atlanta Plan

S
StaffMag
August 19, 20266 min0

Potbelly will open its first restaurant in Georgia on September 1, 2026, in Chamblee, a suburb of Atlanta. The store at Peachtree Station marks the beginning of the brand's broader growth plans in the state. Potbelly had previously partnered with Royal Restaurant Group to develop 15 locations in the Greater Atlanta area; this new market entry is part of the chain's franchise-heavy growth strategy aimed at reaching 2,000 locations in the U.S.

Potbelly Enters Georgia: First Store to Launch 15-Location Atlanta Plan

Potbelly Sandwich Works is adding a new state to its geographical footprint in the U.S. The fast-casual sandwich chain will open its first restaurant in Georgia on September 1, 2026, at Peachtree Station Shopping Center in Chamblee. QSR Magazine and local sources confirm the opening date and location.

The new store is not just a market test. Potbelly had signed a development agreement with Royal Restaurant Group to cover a total of 15 restaurants in the Greater Atlanta area by 2024. The plan anticipated a gradual rollout of openings, with the franchise group expected to open approximately three new stores per year.

Therefore, it makes more sense to view the Chamblee opening as the first operational test of whether the brand can establish a scalable network in Georgia rather than just a new branch.

First store in the Atlanta metro area

Potbelly's first Georgia location will be situated at 5001 Peachtree Boulevard in the Peachtree Station shopping center. Local media also confirm the September 1 opening. The Atlanta Journal-Constitution reports that the store will open in the Peachtree Station complex, which also houses Whole Foods.

The location choice is significant for franchise growth.

Restaurant brands entering a new state need to evaluate not only the population but also daily traffic, proximity to office and residential density, retail neighbors, delivery potential, and alignment with the brand's target customer profile.

If the first store can generate sufficient brand awareness and repeat visits, it will provide stronger data for both franchisees and the real estate side for subsequent locations.

Plan for at least a 15-restaurant network in Georgia

The foundation of Potbelly's Georgia plan was laid in November 2024. The company announced it had reached an agreement with Royal Restaurant Group to develop 15 stores in the Greater Atlanta area. It is noted that Royal Restaurant Group has multi-unit operating experience with other restaurant brands.

Current local news in 2026 also indicates that Potbelly will not be limited to just Chamblee in Georgia. According to a recent report citing a company spokesperson, plans for at least 15 restaurants in the area are ongoing, and the network is expected to consist of a mix of company-operated and franchise locations.

The critical issue here is not the number of stores but the pace of openings.

In multi-unit franchise agreements, the investor's commitment to 10 or 15 restaurants is the initial step. Real growth occurs with the unit economics of the first restaurants, the capacity to train managers, and the ability to find suitable real estate.

Why is Potbelly entering new states rapidly?

Potbelly's entry into Georgia is part of the brand's broader growth plan in the U.S. The company had announced its goal to open approximately 50 new stores in 2026. According to a CoStar report from December 2025, 23 potential locations had been identified at that stage, including markets like Houston, Cleveland, Columbus, Jacksonville, Charlotte, and Hampton Roads in Virginia.

The long-term goal is to reach approximately 2,000 restaurants in the U.S. A significant portion of this target is planned to be achieved through the franchise system.

However, the 2,000 location target is not the number of stores that have been opened or committed; it is the company's long-term growth goal.

This distinction is particularly important in franchise news. There are many stages between signing a development agreement and the actual opening of a restaurant, including real estate approval, permits, financing, construction, and staffing.

Why is the first restaurant in a new market critical?

The entry of a chain into a new state is different from opening the next branch in an existing market.

Supply routes need to be established, local employees trained, customers need to become familiar with the brand, and local marketing must be built from scratch.

The first restaurant also serves as a field laboratory for subsequent branches.

What hours are strong? What share does takeout have? Which menu items sell more? What is the local labor cost? Is the ideal store size the same? How much traffic is retained after opening?

The answers to these questions can influence the speed and formats with which the commitment to 15 stores will continue.

RaceTrac ownership makes Georgia additionally interesting

Another dimension of Potbelly's entry into Georgia is that the brand is now under the umbrella of Georgia-based RaceTrac.

RaceTrac acquired Potbelly in 2025. Therefore, it is noteworthy that the sandwich chain's first physical entry into the Georgia market occurs in a region where its parent company has strong operational and real estate knowledge. CoStar also highlighted Potbelly's plans to accelerate store openings in 2026 following the RaceTrac acquisition.

However, the fact that the two companies are in the same state does not mean that Potbelly restaurants will automatically be located at RaceTrac locations. The announced first Georgia store is an independent shopping center location.

Lessons for franchise brands in Turkey

The Potbelly example is also significant for Turkey-based restaurant chains planning to expand into new cities or countries.

Entering a new market with a target of 15 stores should not mean opening all 15 locations at once.

A healthier approach may be to use the first one or two stores as a data generation point. The average calculations from the first store, visit frequency, labor rates, rent/sales balance, and takeout behavior can change the format of subsequent locations.

Especially in multi-unit franchise agreements, planning the opening schedule to allow for seeing the actual performance of the first store can reduce investment risk.

In Potbelly's Georgia opening, the number to pay attention to is not 15, but one.

Because in franchise growth, the entire project is tested in the first operating store.

If the first restaurant does not reach the targeted sales level, new store agreements may remain on paper. Conversely, if the unit economics are strong, management can be trained, and customer demand appears repeatable, a 15-store regional network becomes more realistic.

In our view, tracking growth solely through signed franchise agreements can be misleading.

More meaningful indicators are how many of the signed stores have opened, the opening duration, first-year sales performance, and whether the franchisee can finance the next location with resources generated from their own operation.

Potbelly's Chamblee store will also be the starting point for this test in Georgia.

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