GOING OLD SCHOOL... GREAT CONSUMER CHAINS
Potbelly's Has The Best Damn Subs In the World... In-N-Out Burger Kicks Ass

Since I've been back from Asia, one great surprise was the rapid growth of my favorite sandwich shop, Potbelly Sandwich Works. Potbelly has been a Chicago favorite for years and the best damn submarine sandwich you will ever eat... best sandwich period. I discovered Potbelly during my high school years, which is over 15 years ago, and by the time I left for Korea four years ago there were only two locations in the city to my knowledge. About two years ago, I found out from friends that Potbelly shops where multiplying throughout Chicagoland and by this summer they were everywhere. I went to the Lincolnshire location by my parents' home and briefly talked to the manager. He told me that a few years ago the owners received outside investment and now they have over 50 locations throughout the Midwest... states nearby Illinois, such as Indiana and Wisconsin, for those illiterate in U.S. geography. Hmmm... most native Californians and New Yorkers... Californians think anything east of the Rockies is "East Coast" and most New Yorkers don't know anything outside of the five boroughs and the only "national park" they know is Central Park :)

Anyway, I did a Google search and found out that Howard Schultz's investment fund, Maveron, invested into Potbelly. This is a great investment. The sandwich chain has awesome potential like Starbucks did. People who eat their sandwiches crave it and the quality is superb, so a loyal following is developed. I assume Maveron and the Potbelly management will want to grow this nationally and take it public within a few years. Watch for Potbelly if you already haven't tried it, or fly out to Chicago and eat a few. I recommend the "Roast Beef" with everything including hot peppers and the "Italian" with the same.

Another food chain I love that hasn't gone national, but I wish it would is In-N-Out Burger. A west coast chain, primarily in California, has the best burgers out of the fast food burger joints I love. They have over 150 locations, but have gone the slow growth model... founded in 1948. To my knowledge they haven't taken outside investors and probably won't to keep it within the founding family's control.

Switching industries, Fry's Electronics is another consumer chain that is great. It's a competitor to Best Buy and Circuit City, but more geekier. More high-tech gadgets and playthings on their shelves that allow serious geeks to upgrade their computers, audio equipment, etc.

Even a non-techy like me loves this store, but they just need to keep every store consistent in terms of image, interior design, and service before they make a nationwide push. Sometimes their stores look like warehouses with boxes cluttered in the aisles. Many of their salepeople are excellent in their knowledge of hardware and software products, so they definitely should keep this quality as they grow.

Fry's would definitely be a great investment for a private equity firm and a great opportunity for the founders to take outside money to rapidly grow. Definitely a company to watch for in the coming decade.