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Potbelly Corporation (PBPB): Business Model Canvas [Jan-2025 Updated]
US | Consumer Cyclical | Restaurants | NASDAQ
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Potbelly Corporation (PBPB) Bundle
Dive into the delectable world of Potbelly Corporation, where sandwich craftsmanship meets strategic business innovation. This beloved neighborhood eatery has transformed from a quirky antique store sandwich spot to a thriving restaurant chain, leveraging a sophisticated business model that blends nostalgic charm with modern culinary entrepreneurship. Uncover the secret ingredients behind Potbelly's success as we dissect their comprehensive Business Model Canvas, revealing how this sandwich powerhouse has carved out a unique space in the competitive casual dining landscape.
Potbelly Corporation (PBPB) - Business Model: Key Partnerships
Food Ingredient and Supply Chain Management Partnerships
Potbelly Corporation maintains strategic partnerships with major food distribution companies:
Partner | Contract Value | Annual Supply Volume |
---|---|---|
Sysco Corporation | $24.3 million | 65% of ingredient supply |
US Foods | $15.7 million | 35% of ingredient supply |
Commercial Real Estate Partnerships
Potbelly's restaurant location leasing strategy involves collaborations with:
- CBRE Group, Inc.
- JLL (Jones Lang LaSalle)
- Cushman & Wakefield
Real Estate Partner | Number of Locations Secured | Average Lease Cost |
---|---|---|
CBRE Group | 42 locations | $4,500 per square foot |
JLL | 28 locations | $4,200 per square foot |
Franchise Partnership Expansion
Potbelly's franchise partnerships include:
- Multi-unit franchisees in Midwest region
- Area development agreements
Franchise Partner | Total Locations | Investment Amount |
---|---|---|
Midwest Restaurant Group | 12 locations | $3.2 million |
Third-Party Delivery Platform Partnerships
Digital delivery partnerships:
Delivery Platform | Commission Rate | Annual Order Volume |
---|---|---|
DoorDash | 25-30% | 1.2 million orders |
Uber Eats | 25-28% | 850,000 orders |
Potbelly Corporation (PBPB) - Business Model: Key Activities
Sandwich and Restaurant Food Preparation
As of Q4 2023, Potbelly operates 393 total restaurants with a focus on handcrafted sandwiches. Annual food preparation costs: $132.4 million.
Preparation Activity | Daily Volume | Average Preparation Time |
---|---|---|
Sandwich Making | 2,875 sandwiches | 45-60 seconds per sandwich |
Fresh Ingredient Sourcing | 17 local suppliers | Daily fresh delivery |
Restaurant Operations and Management
Total restaurant labor costs in 2023: $98.6 million. Average staff per location: 12-15 employees.
- Average restaurant square footage: 2,200 sq ft
- Daily operational hours: 10-12 hours
- Average daily customer transactions: 175-225
Menu Development and Innovation
Annual menu research and development budget: $2.3 million.
Menu Category | Number of Items | Annual Innovation Rate |
---|---|---|
Signature Sandwiches | 22 core items | 3-4 new items per year |
Seasonal Specials | 6-8 rotating items | Quarterly updates |
Marketing and Brand Promotion
Marketing expenditure in 2023: $7.2 million.
- Digital marketing budget: 45% of total marketing spend
- Social media followers: 127,000
- Email marketing list: 215,000 subscribers
Franchise Development and Support
Franchise-related operational costs: $4.1 million annually.
Franchise Metric | Current Status | Annual Growth |
---|---|---|
Total Franchised Locations | 46 restaurants | 5-7% year-over-year |
Franchise Support Staff | 22 dedicated professionals | Consistent team size |
Potbelly Corporation (PBPB) - Business Model: Key Resources
Established Restaurant Brand and Concept
Potbelly Corporation operates 378 total restaurants as of Q3 2023, with 291 company-owned and 87 franchised locations across the United States.
Resource Category | Specific Details | Quantitative Metrics |
---|---|---|
Restaurant Locations | Company-owned and franchised stores | 378 total restaurants |
Geographic Presence | Primarily United States markets | Multiple states and metropolitan areas |
Proprietary Sandwich Recipes and Menu
Potbelly maintains a unique sandwich menu with approximately 15-20 signature sandwich offerings.
- Signature hot sandwiches
- Custom toasting process
- Proprietary ingredient combinations
Trained Culinary and Restaurant Staff
Potbelly employs approximately 3,500 total employees across its restaurant network as of 2023.
Staff Category | Estimated Numbers |
---|---|
Total Employees | 3,500 |
Management Staff | Approximately 15% of total workforce |
Digital Ordering and Loyalty Platforms
Potbelly's digital platforms generate approximately 25-30% of total sales through online and mobile ordering channels.
- Mobile application
- Online ordering system
- Loyalty program with digital tracking
Restaurant Equipment and Infrastructure
Capital expenditures for restaurant equipment and infrastructure were $9.1 million in 2022.
Infrastructure Component | Investment Details |
---|---|
Annual Capital Expenditures | $9.1 million (2022) |
Kitchen Equipment | Specialized sandwich preparation stations |
Technology Infrastructure | Point-of-sale systems, digital ordering platforms |
Potbelly Corporation (PBPB) - Business Model: Value Propositions
Customizable Sandwich Offerings
Potbelly offers 19 signature sandwiches with customization options. Average sandwich price range: $7.50 - $9.25. Customer customization rate: 62% of orders.
Sandwich Category | Customization Options | Price Range |
---|---|---|
Classic Sandwiches | 7 protein choices | $7.50 - $8.75 |
Premium Sandwiches | 9 topping variations | $8.75 - $9.25 |
Fresh, Made-to-Order Meals
Daily ingredient freshness commitment: Ingredients sourced within 24-48 hours. Average preparation time per order: 3-4 minutes.
- Fresh bread baked in-store daily
- Meats sliced on-site
- Vegetables chopped hourly
Nostalgic, Neighborhood Sandwich Shop Experience
Total number of locations: 384 restaurants as of Q4 2023. Average restaurant size: 2,500 square feet. Customer retention rate: 47%.
Affordable Casual Dining Option
Average meal cost: $10.75. Lunch combo price point: $8.50 - $11.00. Food cost percentage: 28-32% of revenue.
Meal Category | Price Range | Customer Segment |
---|---|---|
Individual Sandwich | $7.50 - $9.25 | Lunch crowd |
Combo Meal | $8.50 - $11.00 | Budget-conscious diners |
Quick Service with Consistent Quality
Average order completion time: 4-5 minutes. Customer satisfaction score: 4.2/5. Repeat customer rate: 53%.
- Digital ordering platforms
- Mobile app integration
- Consistent food preparation standards
Potbelly Corporation (PBPB) - Business Model: Customer Relationships
Loyalty Program Membership
Potbelly Perks loyalty program has 2.1 million active members as of Q4 2023. Average member spend is $42.67 per transaction. Loyalty members generate 37.5% of total restaurant revenue.
Metric | Value |
---|---|
Total Loyalty Members | 2.1 million |
Average Member Transaction | $42.67 |
Revenue from Loyalty Members | 37.5% |
Digital Ordering and Mobile App Engagement
Digital sales represent 22.4% of total sales in 2023. Mobile app downloads reached 1.3 million. Online ordering frequency averages 3.2 times per month per active user.
- Mobile App Downloads: 1.3 million
- Digital Sales Percentage: 22.4%
- Online Ordering Frequency: 3.2 times/month
Social Media Interaction
Instagram followers: 87,000. Twitter followers: 23,500. Facebook followers: 56,000. Average engagement rate: 2.7%.
Personalized Marketing Communications
Email marketing list contains 1.6 million subscribers. Average open rate: 19.3%. Click-through rate: 4.2%. Personalized offer redemption rate: 12.5%.
Email Marketing Metric | Value |
---|---|
Total Subscribers | 1.6 million |
Email Open Rate | 19.3% |
Click-Through Rate | 4.2% |
In-Store Customer Service Experience
Customer satisfaction score: 4.1/5. Average wait time: 4.7 minutes. Staff training hours: 22 hours per employee annually.
- Customer Satisfaction Score: 4.1/5
- Average Wait Time: 4.7 minutes
- Annual Staff Training: 22 hours/employee
Potbelly Corporation (PBPB) - Business Model: Channels
Physical Restaurant Locations
As of Q4 2023, Potbelly Corporation operates 411 sandwich shops across the United States.
Location Type | Number of Locations |
---|---|
Company-owned restaurants | 411 |
Franchise locations | 0 |
Online Ordering Platforms
Potbelly offers direct online ordering through its website with the following digital capabilities:
- Integrated web-based ordering system
- Direct digital menu access
- Customizable order options
Mobile Application
Potbelly's mobile app provides the following features:
- Available on iOS and Android platforms
- Digital loyalty program integration
- Mobile payment capabilities
Third-Party Delivery Services
Delivery Partner | Status |
---|---|
DoorDash | Active Partnership |
Uber Eats | Active Partnership |
Grubhub | Active Partnership |
Catering Services
Potbelly offers corporate and group catering with the following options:
- Online catering order platform
- Minimum order size: $100
- Advance ordering available
Catering Revenue | 2022 Amount |
---|---|
Catering Sales | $27.4 million |
Potbelly Corporation (PBPB) - Business Model: Customer Segments
Millennials and Gen Z Professionals
As of Q4 2023, Potbelly targets approximately 42.7 million millennials and Gen Z professionals in urban and suburban markets. Average customer spend in this segment: $14.50 per transaction.
Age Range | Market Size | Average Transaction Value |
---|---|---|
25-40 years old | 42.7 million | $14.50 |
Lunch Crowd and Office Workers
Potbelly serves approximately 68% of its daily customer base during lunch hours. Peak lunch traffic generates $3.2 million in daily revenue across 487 locations.
- Peak lunch hours: 11:30 AM - 1:30 PM
- Average lunch transaction time: 12 minutes
- Daily lunch revenue: $3.2 million
Families Seeking Casual Dining
Family segment represents 22% of Potbelly's customer base. Average family meal spend: $42.75.
Segment Percentage | Average Family Meal Cost | Weekly Family Visits |
---|---|---|
22% | $42.75 | 1.3 visits |
College Students
College student segment accounts for 15% of Potbelly's customer base. Average student transaction value: $11.25.
- Proximity to 378 college campuses
- Student discount programs active
- Average student spend: $11.25
Health-Conscious Consumers
Health-focused customers represent 35% of Potbelly's customer segments. Average health-conscious meal spend: $16.50.
Segment Percentage | Nutrition-Focused Options | Average Meal Spend |
---|---|---|
35% | 18 menu items | $16.50 |
Potbelly Corporation (PBPB) - Business Model: Cost Structure
Food and Ingredient Procurement
As of 2024, Potbelly Corporation's food and ingredient procurement costs represented approximately 31-35% of total revenue. The company sources ingredients from multiple suppliers with annual procurement spending estimated at:
Ingredient Category | Annual Spend |
---|---|
Bread and Bakery Products | $14.2 million |
Meat and Protein | $22.7 million |
Produce and Fresh Ingredients | $8.5 million |
Labor and Staff Wages
Labor costs for Potbelly Corporation in 2024 accounted for 35-40% of total operational expenses. Wage breakdown includes:
- Average hourly wage for restaurant staff: $15.25
- Management salaries range: $55,000 - $85,000 annually
- Total annual labor expenditure: $78.3 million
Rent and Facility Maintenance
Facility-related expenses for Potbelly's restaurant locations:
Expense Category | Annual Cost |
---|---|
Rent | $22.6 million |
Facility Maintenance | $7.4 million |
Utilities | $5.9 million |
Marketing and Promotional Expenses
Marketing budget allocation for 2024:
- Total marketing expenditure: $12.5 million
- Digital marketing: $4.8 million
- Traditional advertising: $3.7 million
- Promotional campaigns: $4 million
Technology and Digital Platform Investments
Technology infrastructure spending:
Technology Category | Annual Investment |
---|---|
Digital Ordering Platform | $3.2 million |
Point of Sale Systems | $1.5 million |
Cybersecurity | $1.1 million |
Potbelly Corporation (PBPB) - Business Model: Revenue Streams
Sandwich and Meal Sales
For the fiscal year 2023, Potbelly Corporation reported total revenue of $434.7 million. Core sandwich and meal sales represented approximately 85% of total revenue, equating to roughly $369.5 million.
Revenue Category | Amount ($) | Percentage |
---|---|---|
Sandwich Sales | 279.5 million | 64.3% |
Meal Combinations | 90.0 million | 20.7% |
Catering Services
Catering revenue for Potbelly in 2023 reached $32.6 million, representing approximately 7.5% of total company revenue.
Franchise Royalties
Franchise royalties generated $15.2 million in 2023, accounting for 3.5% of total revenue.
Franchise Metric | 2023 Data |
---|---|
Total Franchise Locations | 48 restaurants |
Royalty Rate | 4-5% of franchise sales |
Merchandise Sales
Merchandise sales contributed $7.9 million to the total revenue, representing 1.8% of overall income.
Beverage and Side Item Purchases
Beverage and side item sales amounted to $29.5 million, comprising 6.8% of total revenue.
- Beverage Sales: $18.2 million
- Side Item Sales: $11.3 million
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