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According to CNN, Jersey Mike’s Subs has sold a majority stake in its company to private equity firm Blackstone for $8 billion.
The sale marks the end of almost 70 years as an independent company. Over the years, the company has become a formidable competitor to established brands such as Subway.
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The investment will support the sandwich chain’s plans to accelerate its growth both within the United States and internationally and strengthen its focus on technology and digital innovation, the company said in a statement.
Jersey Mike’s CEO Peter Cancro will retain a significant equity stake and continue to lead the company.
“For more than half a century, Jersey Mike’s has grown through an unwavering focus on quality and delicious sandwiches – consistently building on its loyal customer base as it scales nationally,” said Peter Wallace, senior managing director at Blackstone. “Blackstone has extensive experience accelerating the expansion of high-growth franchise businesses and this area is one of our most compelling investment themes.”
“Our capital and resources will help support important investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchises.”
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Cancro began his journey with the company at the age of 14, working at the original location in Point Pleasant, New Jersey, founded in 1956 as Mike’s Subs. He bought the company in 1975 and started franchising in 1987.
Today, Jersey Mike’s has grown into a leading national franchisor with more than 3,000 locations across the country, open or under development. Known for its high-quality, freshly prepared submarine sandwiches and commitment to authenticity, the brand has built a loyal customer base. Jersey Mike’s is also celebrated as one of America’s fastest-growing fast-casual restaurant chains, ranking number two on Entrepreneur magazine’s 2024 Franchise 500 lists.
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“We believe we are still in the early stages of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” said Cancro. “Blackstone has contributed to the success of some of the most iconic franchise companies worldwide and we look forward to working with them to make significant new investments in the future.”
Blackstone has a proven track record of driving growth for leading franchisors, highlighted by previous investments in Hilton Hotels and SERVPRO. The company has recently backed brands such as Tropical Smoothie Café and 7Brew, further showcasing its expertise in driving franchise success.
According to Statista, an estimated 805,500 franchises in the United States generated economic output of about $860 billion last year. Franchises employed nearly 8.7 million people last year, with quick-service restaurants consistently the largest industry.
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This article Blackstone Takes a Bite Out of Jersey Mike’s With $8 Billion Investment originally appeared on Benzinga.com
