Jersey Mike’s Subs Sold to Investment Firm in $8 Billion Deal
Jersey Mike’s Subs, one of the largest sub-style sandwich chains in the United States, has announced an agreement to sell a majority stake to private equity firm Blackstone. The deal, which values Jersey Mike’s at approximately $8 billion, including debt, underscores growing investor interest in franchise restaurant brands.
Blackstone, known for its significant investments in the food and beverage franchise sector, recently acquired Tropical Smoothie Café for $2 billion earlier this year. Both Jersey Mike’s and Tropical Smoothie Café have a strong presence on Long Island, where they operate numerous locations.
Peter Cancro, founder and CEO of Jersey Mike’s, will retain a substantial equity stake and continue leading the business. Cancro, who started working at the original Jersey Shore sandwich shop in 1971 at age 14, purchased the business in 1975 and expanded it into a fast-growing franchise operation. Today, Jersey Mike’s has more than 3,000 locations nationwide, with plans to reach 4,000 units by 2027.
“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.
Peter Wallace, senior managing director at Blackstone, expressed confidence in the partnership, highlighting Jersey Mike’s focus on quality as a foundation for its continued growth. “Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees,” Wallace said.
Jersey Mike’s has demonstrated exceptional growth, with system sales increasing by an average of 24% annually over the past five years, far outpacing the 5.2% average sales growth in the fast-casual sandwich sector. The chain generates annual per-unit sales of $1.3 million on average, more than double the volume of Subway, which was sold to Roark Capital last year for $9.6 billion.
This acquisition reflects Blackstone’s strategy of investing in scalable franchise brands. In addition to its recent purchases of Tropical Smoothie Café and 7 Brew Coffee, Blackstone has invested in other franchise giants such as Servpro and Hilton Hotels.
The deal is expected to close in early 2025. Both Jersey Mike’s and Tropical Smoothie Café are expected to continue expanding their footprints, including on Long Island, where they have built loyal customer bases.
Photo: Jersey Mike’s in Rocky Point. Google Maps.
