POTBELLY SANDWICH SHOP TARGETS NORTH CAROLINA FOR FRANCHISE GROWTH

Planned Expansion Includes Multiple Shops; Spreading Good Vibes, Great Sandwiches and the Potbelly Neighborhood Hangout Experience

Chicago, IL – December 1, 2014 - Potbelly Corporation (NASDAQ: PBPB) (“Potbelly”) announced today a franchise growth plan targeting North Carolina – a strategy that will position the lively neighborhood hangout for expansion into communities in all corners of the market, including Charlotte, Raleigh/Durham, Winston-Salem, Fayetteville, Cary and Wilmington.

Potbelly plans to enter key markets throughout North Carolina this year and is currently accepting franchisee inquiries. The region has been targeted for expansion because of its strong mix of attractive residential and growing business communities, where the Potbelly experience will be appreciated as a mealtime hangout spot for great food, friends, eclectic décor and live, local music.

“We are determined to maintain Potbelly’s culture and values as the brand expands into new markets in North Carolina and across the country. The focus for franchise growth is on small to medium sized markets — building the franchise business one neighborhood at a time,” said Mike Walters, head of franchise development for Potbelly Sandwich Shop. “When we meet potential franchisees, we specifically look for proven operators with a high business IQ and a strong commitment to making new Potbelly shops an extension of their community.”

The Potbelly franchise business focuses on awarding the opportunity to highly qualified operators that have extensive experience and the desire to carry on Potbelly’s tradition as the neighborhood sandwich shop as well as being a brand ambassador within their communities. Multiple new shops are planned for North Carolina, starting with Greensboro, as the brand prepares for its debut in the state.

About Potbelly

Potbelly Corporation is a fast growing neighborhood sandwich concept offering toasty warm sandwiches, signature salads and other fresh menu items served by engaging people in an environment that reflects the Potbelly brand. Our Vision is for our customers to feel that we are their "Neighborhood Sandwich Shop" and to tell others about their great experience. Our Mission is to make people really happy and to improve every day. Our Passion is to be "The Best Place for Lunch." The Company owns and operates more than 300 shops in the United States and the District of Columbia and our franchisees operate more than twenty shops domestically and in the Middle East.