RaceTrac Buys Potbelly for $566 Million

On September 10, 2025, RaceTrac—a family-owned convenience store and gas station chain—announced it would acquire Potbelly Sandwich Shop in an all-cash deal valued at about $566 million. Potbelly, with roughly 445 locations, will continue operating under its own brand but will tap into RaceTrac’s infrastructure to pursue an ambitious expansion plan. The goal: grow to 2,000 stores nationwide. For RaceTrac, the deal isn’t just about sandwiches—it’s about transforming from a fuel-first business into a foodservice powerhouse.

Blackstone’s $8 Billion Jersey Mike’s Play

RaceTrac isn’t alone in seeing sandwiches as a goldmine. In November 2024, Blackstone agreed to acquire a majority stake in Jersey Mike’s, valuing the company at nearly $8 billion. The deal is expected to close in early 2025. Founder Peter Cancro, who has run the brand since he was 17, will stay on as CEO with a significant equity stake. Jersey Mike’s has more than 2,800 stores and a strong franchising model, making it a dream target for a private equity firm with Blackstone’s appetite for scalable, cash-flowing businesses.

Roark Capital’s Subway Megadeal

The sandwich M&A wave started in August 2023 when Roark Capital bought Subway for $9.55 billion. With more than 37,000 locations worldwide, Subway remains one of the largest restaurant chains on earth. Roark already owns stakes in other sandwich brands like Arby’s and Jimmy John’s, making the Subway purchase a crown jewel in its fast-food empire. It was a signal to the market: sandwiches aren’t just comfort food—they’re strategic assets.

Why the Sandwich Market Is Hot

So what’s fueling this appetite for subs and hoagies? A few key factors stand out:

• Franchise-friendly economics: Sandwich shops thrive on scalable models, repeat business, and relatively low build-out costs.

• Consumer resilience: Even in tough economic times, sandwiches offer value and convenience, making demand stable.

• Growth runway: Potbelly wants to quadruple its footprint, while Jersey Mike’s has grown rapidly in recent years. Investors see plenty of white space for expansion.

• Operational synergies: For firms like RaceTrac or Roark, folding sandwiches into existing businesses means unlocking cost savings, tech upgrades, and supply chain leverage.

The Playbook for Black-Owned Restaurants

For Black-owned restaurants, the billion-dollar sandwich playbook offers both inspiration and opportunity. Three strategies stand out:

1. Differentiate through culture and flavor. Afro-Caribbean, Southern, or diaspora-inspired sandwiches could create unique lanes in a crowded market. Think of how Jersey Mike’s built loyalty with East Coast-style subs—there’s room for cultural authenticity to become the next big trend.

2. Regional strength before national scale. Build a cluster of strong-performing units in one or two markets, then expand through franchising. A clear system, strong margins, and local buzz attract both customers and investors.

3. Leverage partnerships and platforms. Nontraditional spaces—gas stations, grocery stores, food halls, even HBCU campuses—offer opportunities for Black-owned sandwich shops to scale without massive capital. Technology and delivery platforms can also stretch reach quickly.

The Bottom Line

The recent string of sandwich mega-deals proves that food with simple appeal can carry extraordinary financial weight. What started as comfort food is now an investment class. For Black entrepreneurs in the food space, the lesson is clear: scalability, cultural identity, and smart franchising can turn a local sandwich shop into the next billion-dollar headline.