Jersey Mike’s announced Tuesday that it’s selling a majority ownership stake to private equity firm Blackstone.
Financial terms of the deal were not disclosed. Jersey Mike’s founder and CEO Pete Cancro will maintain a significant equity stake and continue to lead the sandwich giant. The transaction should close sometime in early 2025.
The brand said the agreement will help it accelerate expansion in the U.S. and internationally, in addition to more investment in technology and digital infrastructure.
“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. “Blackstone has helped drive the success of some of the most iconic franchise businesses globally and we look forward to working with them to help make significant new investments going forward.”
The Wall Street Journal said in April that Jersey Mike’s was exploring a deal with Blackstone. At the time, the sandwich chain valued itself at around $8 billion.
Jersey Mike’s, which has more than 3,000 locations open and in development, is the fastest-growing sandwich chain in America. Between 2021 and 2023, the chain opened a net of 828 restaurants. In 2023, the brand earned $3.3 billion in U.S. systemwide sales, according to the QSR 50. Also, the chain’s AUV went from $824,000 pre-COVID to $1.21 million by the end of 2022; it’s now closer to $1.35 million.
Cancro told QSR in late 2023 that Jersey Mike’s expects to open roughly 350 locations in 2024 and ramp up to 400 to 450 openings by 2026. After that, the plan is to settle into 13 percent to 15 percent annual unit growth, which should get the brand near 5,000 U.S. outlets by the end of the decade.
The company launched a new image in January 2020. Jersey Mike’s pledged to pay for all operators’ remodels at $75,000 per location, or a roughly $150 million investment systemwide. Changes included everything from new floors and counters to tiles on the backline. Units today also have another counter and slicer so off-premises tickets are made on the back line away from dine-in guests. Before this, Jersey Mike’s hadn’t undergone a retrofit initiative since 2009–2011. The brand paid the majority of that as well, but the bill totaled just $15 million.
In January, Jersey Mike’s announced a 300-store deal with Burger King and Taco Bell franchisee Redberry Restaurants, which plans to open all these restaurants in Canada by 2034. It signaled the brand’s first major international expansion plan in company history.
Cancro founded Jersey Mike’s in 1975 after purchasing Mike’s Subs at 17 years old. He began franchising in 1987.
Blackstone has recently made heavy investments into the restaurant industry. In April, the Wall Street Journal reported the private equity firm bought Tropical Smoothie Cafe for roughly $2 billion. Also, the group became an equity investor in 7 Brew, a quickly growing coffee chain.
“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,” Peter Wallace, a senior managing director at Blackstone, said in a statement. “Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes. We are excited to partner with an entrepreneur of Peter’s caliber and the talented Jersey Mike’s team. Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees. I highly recommend the #13 Original Italian, Mike’s Way.”
