Potbelly May Close 100 Stores Due To Coronavirus

Potbelly is considering closing 100 stores after sales dramatically dropped due to coronavirus-related stay-at-home orders across the country.

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The Chicago-based sandwich chain released its first-quarter earnings on May 12, which showed stores open at least 15 months dropped 68% in sales in March.

To make matters worse, the company reported a first-quarter net loss of $10.5 million compared to last year, as overall revenues fell from $98.1 to $87.6 million.

"Currently, we are having proactive conversations with our landlords, are considering closing up to 100 shops, and are continuously working to implement ways to work more effectively and efficiently," Alan Johnson, President and Chief Executive Officer of Potbelly Corporation, commented in the release.

In addition to the looming store closures, to mitigate the loss of sales Potbelly furloughed one-third of its corporate employees and cut salaries for all executives and corporate employees by 25%. It also temporarily closed 36 company-operated restaurants.

Like many other chain restaurants, Potbelly has been offering customers curbside pickup and delivery in addition to introducing the Potbelly Pantry. Customers are able to stock up on bake-your-own cookie boxes, cheeses, meats, breads and other Potbelly staples via delievery to make their own sandwiches at home and make a meal in feel like a meal out. Though most restaurants aroung the country remain closed, there are also some states reopening dine-in during coronavirus.