A quick-casual restaurant chain recognized for its thick deli sandwiches is ready to shut wherever between 25 and 30 eating places—down from its preliminary forecast of 100 again in Might.
Potbelly Corp. revealed a big drop in year-over-year income when it launched Q3 outcomes on Thursday. The quarter, which ended on Sept. 27, confirmed income down from $104.2 million in 2019 to $72.7 million in 2020, or a dip of greater than 30%. Although the chain was in a position to revise down its closure forecast, it plans to scale back prices by a whopping $3.5 to $4 million partially by way of workers reductions.
Potbelly will even enact company expense optimization and consolidate franchise and firm location help providers into one entity in an effort to additional trim prices. Since this time final 12 months, the chain is already down 21 corporate-owned eating places. Different fast-casual chains concentrated in city facilities, akin to Nook Bakery Cafe, Le Ache Quotidien, and Shake Shack, have struggled as many Individuals proceed to do business from home.
Among the largest fast-food chains within the nation have additionally been pressured to completely shut eating places since preliminary pandemic-related shutdowns started in March. Pizza Hut, for instance, shuttered 1,2oo of its international places, greater than 400 of which have been U.S. eating places. Fast-service breakfast and occasional chains are in hassle, too. Dunkin’ lately introduced it had shuttered almost 700 of its U.S. places. (To seek out out about different chains impacted by closures, try 9 Restaurant Chains That Closed A whole lot of Places This Summer season.)
Potbelly Corp. didn’t reply to Eat This, Not That is request for remark.
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