RaceTrac is betting sandwiches can help fuel its future.
The Atlanta-based convenience retailer on Oct. 23 completed its purchase of Potbelly Corp., taking the company private. The Chicago chain is known for its toasted submarine sandwiches, salads and milkshakes.
When announced in September, the all-cash deal was valued at $566 million.
“We felt that expanding into the limited-service restaurant space really made a lot of sense for our overall future,” Melanie Isbill, RaceTrac’s chief brand officer, said the day the deal closed.
She called it a historic moment for RaceTrac, one of Atlanta’s largest private companies, which her grandfather founded in 1934.
Convenience stores were once just pit stops for gas and a snack. But operators have expanded into food service, becoming one-stop shops for customers.
RaceTrac operates 800 RaceTrac and RaceWay fuel center locations, along with 1,200 Gulf locations, across the U.S.
But don’t expect sandwich shops to come to all its convenience stores.
“There’s not going to be a Potbelly in every single RaceTrac for the future,” Isbill said. “However, we will be looking for opportunities to see where it may make sense to coexist. Hopefully, we will find strong opportunities for that.”
Isbill said that could include the Atlanta area, but said it’s too early for exact plans.
Credit: sou
Credit: sou
RaceTrac says it will focus on Potbelly’s expansion. Potbelly today has around 445 company-owned and franchised restaurants, with plans to grow to 2,000.
“Together, we can help achieve that goal even more easily,” Isbill said.
The expansion includes Potbelly’s first restaurants in the greater Atlanta area. Before the acquisition, Potbelly signed deals with two franchisees to open 15 locations each. Those 30 restaurants should roll out over the next eight years.
The first will open in Chamblee in the first half of 2026, Isbill said.
RaceTrac’s acquisition comes as chains such as Buc-ee’s and Wawa, with their food offerings and dedicated followings, are expanding in states including Georgia.
The profit margin for fuel sales is slim, so convenience store operators are looking to boost sales inside their stores, especially on food and beverage. RaceTrac first began offering fresh food in 2004, according to its website.
“Fuel is ever evolving and changing,” Isbill said, as more electric vehicles and cars with higher gas mileage take to the street. “We want to make sure that we’re setting ourselves up for the future.”
As part of the deal, Adam Noyes, who served as Potbelly’s chief operating officer, has been appointed president of the chain. Bob Wright will remain with the company as CEO through the end of the year.
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