Who owns Jersey Mike’s? Sub-store chain sold for billions

On November 20, 2024By Littum

Four minutes of reading

WALL – Private equity firm Blackstone will buy a majority stake in Jersey Mike’s Subs, the iconic sub sandwich chain born and raised on the Jersey Shore.

Financial terms were not disclosed. The investment values Jersey Mike’s at about $8 billion, the Wall Street Journal has reported. The deal is expected to close in early 2025.

Jersey Mike’s founder and CEO Peter Cancro will retain a “significant stake and continue to lead the business,” the companies said in a joint statement. The investment will help fuel Jersey Mike’s growth across the U.S. and into other markets outside and boost its technology and digital transformation, they said.

“We believe we are still at the beginning of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” said Cancro.

“Blackstone has helped drive the success of some of the most iconic franchise businesses globally, and we look forward to partnering with them to help make significant new investments going forward.”

The investment marks a big payday for Cancro, who is one of the Jersey Shore’s leading philanthropists and was most recently named co-chair of Hackensack Meridian Health Foundation’s $1 billion fundraising campaign called Be the Difference.

Cancer’s history is part of Jersey Mike’s image. He was a high school football star who had worked at Mike’s Subs in Point Pleasant during the summers since age 14 when he decided to buy the store in 1975 at age 17, at which point he wasn’t even old enough to operate the slicer legally.

He borrowed $125,000 with the help of Rod Smith, his Pop Warner coach. And he changed the name of the store to Jersey Mike’s in 1987 and began franchising.

It was a slow and steady expansion. His brother-in-law, Jim Hudson, opened a store in Hudson’s hometown of Kingsport, Tennessee, the first outside of New Jersey.

Jersey Mike’s Subs now has more than 3,000 locations either open or under development. It is one of the fastest-growing fast-casual restaurant chains in America and ranked No. 2 on the Entrepreneurs 2024 Franchise 500.

Jersey Mike’s has become ubiquitous with a steady diet of commercials featuring Cancro and Asbury Park native son, Danny DeVito. The company has naming rights to the former Rutgers Athletic Center in Piscataway, one of dozens of high schools where its logo is prominently displayed.

Despite New Jersey’s tough reputation outside of its borders, Jersey Mike’s has embraced the state, especially the Jersey Shore.

Customers walk into a store and see pictures of the beach and surf while employees make sandwiches at a frantic pace.

There may be a method to the madness. The sandwich names, for example, are out of order and look like a random collection of numbers. Executives said the submarines have simply kept their original numbers; some have fallen off the menu.

And customers can order sandwiches “Mike’s Way” instead of listing six ingredients. It keeps the line moving.

When it opens in a new market, it brings a new way to make subs and shots from the Shore, but it also sponsors a five-day fundraiser for a local charity or organization. Its mission is “to give … make a difference in someone’s life.”

The company recently completed its 14th annual Month of Giving, with more than $113 million raised for local charities since 2011.

The investment in Jersey Mike’s comes after Blackstone has taken stakes in fellow restaurant franchisors, Tropical Smoothie Cafe and 7Brew. Blackstone has also previously bought Hilton Hotels and Serv Pro.

“Jersey Mike’s has grown for more than half a century by maintaining a relentless focus on quality (and delicious sandwiches) — consistently building on its loyal customer base as it has grown across the country,” said Peter Wallace, a senior managing director at Blackstone. “We are excited to partner with an entrepreneur of Peter’s caliber and the talented Jersey Mike’s team.”

Jersey Mike’s, which according to the Wall Street Journal has been “in and out” of talks with Blackstone since the beginning of this year, is the second Jersey Shore brand to announce private equity investment in recent months.

Sycamore Partners bought Playa Bowls, a super bowl chain that started a decade ago in Belmar and has expanded to 22 states nationwide, the companies announced in September.

David P. Willis, an award-winning business writer, has covered business, retail, real estate and consumer news at the Asbury Park Press for 27 years. He writes APP.com’s What’s Going There column and can be reached at [email protected]. Sign up for his weekly newsletter and join his What’s Going There page on Facebook for updates.