Jersey Mike’s Subs, the renowned American sandwich chain, is set to be acquired by Blackstone, one of the largest asset management firms in the world, according to a joint announcement made on Tuesday. The deal is expected to close in early 2025, with private equity funds managed by Blackstone taking a controlling stake in Jersey Mike’s.
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The acquisition is expected to accelerate Jersey Mike’s expansion both within the United States and globally, while also supporting technological investments to enhance customer experience and optimize operations.
Peter Cancro, the founder and CEO of Jersey Mike’s, will continue to lead the company and retain a significant equity stake. “We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” Cancro said in a statement. He added, “Blackstone has helped drive the success of some of the most iconic franchise businesses globally.”
The story of Jersey Mike’s began in 1956, when a small storefront called Mike’s Subs opened in Point Pleasant, New Jersey. In 1975, with financial support from his football coach, a 17-year-old Peter Cancro purchased the business after working there since the age of 14.
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Over the past decade, Jersey Mike’s has grown tremendously. According to restaurant consulting firm Technomic, the number of its locations has more than tripled, from 857 stores in 2014 to over 2,800 stores this year.
In 2023, the chain reported sales of $3.3 billion, a 25% increase from the previous year, making it the 30th largest restaurant chain in the United States by annual sales. This success stems from a strategic expansion and a focus on delivering high-quality products and services.
The rapid growth has allowed Jersey Mike’s to gain market share from competitors like Subway, which has struggled with an excess of aging stores. Last year, Subway was acquired by Roark Capital, a private equity firm specializing in restaurant management, which also owns brands like Jimmy John’s and Arby’s, two competitors of Jersey Mike’s.
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The acquisition of Jersey Mike’s aligns with Blackstone’s broader strategy of investing in high-potential restaurant brands. Earlier this year, Blackstone acquired Tropical Smoothie Cafe, with the goal of supporting its expansion.
The Jersey Mike’s acquisition still requires regulatory approval and the fulfillment of other conditions before it can be finalized. However, this partnership with Blackstone signals a promising future for Jersey Mike’s. With new investments and strategic collaboration, the company is poised for significant growth, bringing its quality sandwiches to even more consumers worldwide.
From a small seaside storefront in New Jersey to a billion-dollar brand, Jersey Mike’s journey is a testament to the vision and determination of its founder. This acquisition not only marks a turning point for the company but could also reshape the global restaurant market in the years to come.
