Potbelly Corp., the well-known sandwich chain, is piloting a new $7.99 value combo meal in response to consumer budget concerns and is also rolling out a smaller store design, according to company executives on Thursday.

The Chicago-headquartered fast-casual brand disclosed its second-quarter results ending June 30, revealing its initiative to attract price-sensitive, less frequent customers with affordable meal options. “We’ve tested various everyday value combo meal deals to keep our infrequent customers coming back,” stated Robert Wright, CEO and President of Potbelly. He added that the tests identified a successful offering: the $7.99 skinny combo meal, which includes a choice of turkey, ham, or chicken skinny sandwich accompanied by chips and a drink. This combo not only meets customer demands but also supports the company’s financial health by maintaining profit margins.

Wright announced that by late July, this combo meal was made available across nearly all Potbelly locations. Despite these efforts, early trends in the third quarter indicate that consumers continue to be cautious with their spending, favoring grocery shopping over dining out.

Alongside these marketing strategies, Potbelly unveiled a new, smaller store format in the second quarter. “The ideal size for our new stores is about 1,800 square feet, but we are flexible and could go smaller or slightly larger in some franchise locations,” Wright explained.

For the quarter ending June 30, Potbelly reported a net income of $34.7 million, or $1.13 per share, a significant increase from $2.2 million, or seven cents per share, in the same period last year. However, revenues dipped to $119.7 million from $126.6 million year-over-year.

The chain also saw a modest increase in same-store sales, which rose by 0.4% in the second quarter. Established in 1977, Potbelly operates over 425 locations across the United States, including more than 80 franchised stores.

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