Blackstone Takes A Bite Out Of Jersey Mike's With $8 Billion Investment

According to CNN, Jersey Mike's Subs has sold a majority stake in its business to private equity firm Blackstone for $8 billion.

The sale marks the end of nearly 70 years as an independently owned business. Over the years, the company has become a formidable competitor against established brands like 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 enhance its focus on technology and digital innovation, the company said in a statement.

Jersey Mike's CEO, Peter Cancro, will maintain a significant equity stake and continue to lead the business.

"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," said Peter Wallace, senior managing director at Blackstone. "Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes."

"Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike's customers and exceptional franchises."

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Cancro started his journey with the company at age 14, working at its original location in Point Pleasant, New Jersey, established in 1956 as Mike's Subs. He purchased the business in 1975 and began franchising in 1987.

Today, Jersey Mike's has grown into a leading national franchisor with more than 3,000 locations across the country, either open or in development. Known for its high-quality, freshly prepared submarine sandwiches and commitment to authenticity, the brand has earned a loyal customer base. Jersey Mike's is also celebrated as one of America's fastest-growing fast-casual restaurant chains and ranked No. two on Entrepreneur magazine's 2024 Franchise 500 lists.

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"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 in the future."

Blackstone has a proven track record of driving growth for leading franchisors, highlighted by past investments in Hilton Hotels and SERVPRO. The firm has recently backed brands like Tropical Smoothie Café and 7Brew, further showcasing its expertise in fostering franchise success.

According to Statista, an estimated 805,500 franchises in the United States generated an economic output of about $860 billion last year. Franchise establishments employed nearly 8.7 million people last year, with the largest business line consistently being quick-service restaurants.

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