At That Age, You Don't Think You Can Fail': Peter Cancro's Journey From Slicing Subs To An $8 Billion Jersey Mike's Deal

Peter Cancro was just 17 when he pulled off a deal that would shape his destiny. In 1975, with a $125,000 loan from his football coach, the high school senior bought Mike's Subs, a Point Pleasant, New Jersey sandwich shop where he had worked since he was 14. 

At the time, Cancro wasn't even old enough to legally operate the deli slicer. Fast forward nearly 50 years and that teenage gamble has turned Cancro into a billionaire.

Don't Miss:

• The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.
• It’s no wonder Jeff Bezos holds over $70 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

Jersey Mike's Subs, as the shop was rebranded, has grown into a global franchise powerhouse. On Tuesday, private equity titan Blackstone announced it had agreed to acquire a majority stake in the company, valuing it at roughly $8 billion including debt. The deal bumps Cancro's net worth to an estimated $7.5 billion, according to Bloomberg.

Cancro initially had other plans for his future – he dreamed of studying law and political science at the University of North Carolina. But when his mother floated the idea of buying the sandwich shop, something clicked. "At first, I laughed," Cancro told Forbes. 

But soon, the idea made sense. With just a week to gather the money, Cancro convinced his football coach, a banker, to back the purchase. Adjusted for inflation, that $125,000 loan would be nearly $750,000 today. By the time Cancro graduated high school, he was the sole owner of Mike's Subs.

See Also: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!

Jersey Mike's now operates nearly 3,000 locations worldwide. In 2023, the company raked in $3.3 billion in sales, according to food consulting firm Technomic. 

That figure represents a stunning 20% annual growth rate since 2019, far outpacing the quick-service restaurant (QSR) industry average of 6.8%. With U.S. QSR sales projected to hit $370.8 billion in 2023, Jersey Mike's is capitalizing on the sector's booming popularity.

Yet Cancro's path hasn't been smooth sailing at all. The early 1990s brought a financial crisis triggered by regional bank failures, forcing Cancro to lay off his entire corporate team, including his brother. "It was my toughest recession, even beyond 2008," he later shared on The Jedburgh Podcast. 

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Despite pressure to sell or take the company public, Cancro held firm. By 1994, the tide turned and Jersey Mike's began expanding into new markets including North Carolina.

In 2006, the company hit another rough patch as stores started to look outdated. Cancro made a bold decision: spend $15 million – essentially all the company's cash – to modernize the brand. "I said, ‘I'll put everything on the table,'" he recalled. The risk paid off, putting Jersey Mike's back on a strong growth trajectory by 2007.

Today, owning a Jersey Mike's franchise is a coveted but selective opportunity. Only 1% of applicants are approved and startup costs range from $200,000 to $1.3 million. Yet the payoff is significant: franchisees earn an average of $1.2 million annually per store, as per the company's website.

As Blackstone prepares to take the reins, Cancro will retain a significant minority stake and remain CEO. "We believe we are still in the early innings of Jersey Mike's growth story," he stated.

Read Next:

• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Last Chance to get 4,000 of its pre-IPO shares for just $0.26/share!
• Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $100.