In partnership with
Friends of Branded!
Happy Saturday and I hope you had a great week.
It was announced this week that Potbelly Sandwich Shop has been acquired by RaceTrac, one of the largest privately held convenience store retailers in the US in an all-cash deal for $566mm (I always believe it’s important to highlight all-cash transactions. No stock, cash-money!). 😊
Why does this $500+ million M&A deal fire me up? Great question. Let’s go!
I find this acquisition quite simply to be one of the boldest and statement making examples of the blurring of the lines and convergence taking place in our industry. The hospitality industry is moving away from the long-established segmentation by verticals and the opportunities this is creating are awesome. Operators & investors - if you take only one thing away from this week’s Top of the Fold, it’s that the lines that separate restaurant & foodservice verticals are being redrawn.
RaceTrac buying Potbelly isn’t just a financial transaction, it’s a symbol of how the “boundaries” between what used to be clear and distinct food channels are eroding. Your guests are no longer drawing a hard line between a “restaurant visit” and a “c-store stop.” With this acquisition, RaceTrac didn’t just buy some menu items to add to its shelves, they bought a brand! Potbelly carries an identity, a loyalty program, a neighborhood vibe, and a digital ecosystem — and RaceTrac just accelerated something all brands need to be mindful of, a “channel-less” future.
