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

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    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 reported. The transaction is expected to close in early 2025.

    Jersey Mike’s founder and CEO Peter Cancro will retain a “significant equity stake and continue to lead the company,” the companies said in a joint statement. The investment will fuel Jersey Mike’s growth in the US and other markets abroad, driving technology and digital transformation, they said.

    “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.

    Jersey Mike’s: From Ocean County’s small sub shop to the big leagues

    “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.”

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

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

    Hall of Famer: Peter Cancro is among those joining the New Jersey Hall of Fame

    He borrowed $125,000 with the help of Rod Smith, his Pop Warner coach. And he changed the store’s name 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 New Jersey.

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

    Jersey Mike’s: The chain is expanding into Canada as the iconic Jersey Shore brand goes international

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

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

    Customers walk into a store and see images of the beach and surfing, while employees work at a feverish pace to make sandwiches.

    There may be a method to the madness. For example, the sandwich names are out of order and look like a random collection of numbers. Executives said the submarines simply retained their original numbers; some have disappeared from the menu.

    What goes there? Check out our newsletter offering for even more news from the Jersey Shore

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

    As it enters a new market, it brings with it a new way to create captions and footage of the Shore, but it also sponsors a five-day fundraiser for a local charity or organization. The company’s mission is to “give… make a difference in someone’s life.”

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

    Philanthropy: Jersey Mike’s founder donates $10 million to Hackensack Meridian Health

    The investment in Jersey Mike’s comes after Blackstone took stakes in other restaurant franchisors, Tropical Smoothie Cafe and 7Brew. Blackstone also previously acquired Hilton Hotels and Serv Pro.

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

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

    Sycamore Partners has acquired Playa Bowls, a superberry bowl chain that started in Belmar a decade ago and has expanded to 22 states across the country, the companies announced in September.

    David P. Willis, an award-winning business writer, covered business, retail, real estate and consumer news for 27 years at the Asbury Park Press. 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.

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