Rebranding plans have hit a snag as same-store sales decline and locations are closed.

In efforts to focus on franchising, Potbelly has hit a low point. The company announced that it saw a nearly 5% fall in same-store sales and is closing eight locations, seven of which are corporate-owned.

Although the sandwich chain planned a revamped menu and partnership with DoorDash, the company is reevaluating its initiatives. Nation’s Restaurant News stated, “During the quarter, the company also closed eight underperforming restaurants, including seven company stores. Chief financial officer Tom Fitzgerald said in some cases the company had to ‘cut checks’ to get out of leases on stores that ‘we couldn’t find a way to make profitable.’”

However, Potbelly recently saw check averages increase as customers are buying more items. The company also reported that off-premise sales grew in the first quarter and the loyalty program is performing well with an additional 800,000 users since 2018 during the same quarter.

Despite the recent downturn, Potbelly is positive that sales will recover and are hopeful to see success in the rebranding down the road.

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