In a move set to catapult its growth trajectory, Jersey Mike’s Subs announced today that Blackstone, one of the world’s leading private equity firms, will acquire a majority ownership stake in the company. This partnership will support the sandwich chain’s ambitious plans for U.S. and international expansion. In parallel, it will enable further investments in technology and digital transformation.
Peter Cancro, Jersey Mike’s Founder and CEO, will retain a significant equity stake and continue to lead the business he has nurtured since acquiring the original Mike’s Subs location in Point Pleasant, New Jersey, at just 17 years old. Since its inception in 1956 and Cancro’s transformative franchising efforts beginning in 1987, Jersey Mike’s has become a fast-casual juggernaut with over 3,000 locations nationwide.
“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. “Blackstone has helped drive the success of some of the most iconic franchise businesses globally, and we look forward to working with them to make significant new investments going forward.”
A Recipe for Success
Blackstone brings significant expertise in scaling franchise businesses. There track record includes investments in Hilton Hotels, SERVPRO, Tropical Smoothie Cafe, and 7Brew. Peter Wallace, Senior Managing Director at Blackstone, expressed excitement about the partnership, crediting Jersey Mike’s enduring appeal.
“Jersey Mike’s has grown for more than half a century by maintaining an unrelenting focus on quality (and delicious sandwiches) – consistently building on its loyal customer base as it has scaled nationwide,” Wallace said. “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 also added he “highly recommends the #13 Original Italian, Mike’s Way.” I’ll second that recommendation. For those who don’t know, #13 is an authentic Jersey-style Italian sub. It’s crafted with provolone, ham, prosciuttini, cappacuolo, salami, and pepperoni on the bread of your choice.
Jersey Mike’s success is built on more than just subs. The brand’s commitment to its communities is exemplified through initiatives like the Month of Giving, which has raised over $113 million for local charities since 2011, and the Coach Rod Smith Ownership program, which helps store managers transition into franchise ownership. Most recently, we wrote a Franchise Heart article about Jersey Mike’s teaming up with Best Buddies to Raise Funds and Awareness. Read that article for another excellent example of Jersey Mike’s commitment to the communities they serve.
Looking Ahead
The transaction is expected to close in early 2025, pending regulatory approvals. In 2025, be sure to look for Blackstone to leverage its private equity expertise to amplify Jersey Mike’s impact on the fast-casual dining landscape.
Guggenheim Securities and Morgan Stanley & Co. LLC are acting as financial advisors and White & Case LLP served as legal counsel to Jersey Mike’s. Barclays and Bank of America are acting as financial advisors and Simpson Thacher & Bartlett LLP served as legal counsel to Blackstone.
With Blackstone’s backing, Jersey Mike’s is poised to achieve new milestones, building on its already stellar reputation as one of America’s fastest-growing and most beloved restaurant chains.
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