Potbelly’s initial public offerings sold like hotcakes on October 4th, with shares being sold above their expected value and doubling in the first few hours. This up and coming sandwich store chain is hoping, along with its investors, to become the new Chipotle.
To expand, Potbelly needs to improve its positioning. Chipotle’s brand strength can be attributed to the fact that it was one of the first brands associated with healthier fast food and quality burritos. While Potbelly also offers natural ingredients, the idea of healthy fast food has become a point of parity in an increasingly health conscious society. Furthermore, Potbelly will have difficulty differentiating in the soup and sandwich market since it doesn’t have the “first to” advantage.
So how can Potbelly grow? Potbelly needs to work on customer relationships and finding and targeting a part of sandwich industry that is not being met by existing brands. Potbelly needs to become the frame of reference in consumers’ minds as the go to place for innovative sandwiches and soups. Only with time can they observe customer trends and adapt their product, but in the meantime, they should focus on delivering quality and their brand promise of “Good vibes, good sandwiches.”
Check out the full article here: http://www.businessweek.com/articles/2013-10-04/potbelly-devoured-by-hungry-investors-seeking-the-next-chipotle#r=hpt-ls
Pictures from: Unbreaded http://unbreaded.com/2009/04/09/love-your-belly-a-peek-inside-potbelly-sandwich-works/ and Wikipedia http://en.wikipedia.org/wiki/Potbelly_Sandwich_Works