Jersey Mike’s Subs, a prominent fast-casual restaurant chain known for its freshly sliced and grilled submarine sandwiches, has announced a major business development. The company has reached an agreement with private equity giant Blackstone, under which Blackstone’s flagship private equity fund will acquire a majority ownership stake in Jersey Mike’s.
Despite the change in ownership, Jersey Mike’s Founder and CEO, Peter Cancro, will retain a significant equity interest in the company and continue to lead the business. The partnership is expected to support Jersey Mike’s strategic goals, including accelerating its expansion both within the United States and internationally, while further investing in technology and digital transformation.
Blackstone’s deep experience in scaling successful franchise brands makes it an ideal partner for Jersey Mike’s, which has grown significantly over the past few decades. The firm has a history of backing some of the world’s most iconic franchisors, including Hilton Hotels and SERVPRO, as well as recent investments in brands such as Tropical Smoothie Cafe and 7Brew.
“We are still in the early stages of Jersey Mike’s growth, and Blackstone is the right partner to help us reach even greater heights,” said Cancro. “Blackstone has played a key role in the success of some of the most well-known franchise businesses, and we’re excited to collaborate with them to make significant new investments to expand our brand and enhance the customer experience.”
Founded in 1956 as Mike’s Subs in Point Pleasant, New Jersey, Jersey Mike’s has been a beloved staple of American fast-casual dining for decades. Cancro, who began working at the company as a teenager, purchased the business in 1975 at the age of 17. He went on to franchise the brand in 1987, and today, Jersey Mike’s operates more than 3,000 locations across the country, with additional stores in development. The company’s focus on quality, fresh ingredients and authentic customer service has made it one of the fastest-growing restaurant chains in America. It was recently ranked #2 on Entrepreneur’s 2024 Franchise 500 list.
Peter Wallace, Senior Managing Director at Blackstone, expressed enthusiasm about the acquisition, noting the company’s commitment to quality and growth. “Jersey Mike’s has consistently delivered delicious sandwiches and built a loyal customer base, scaling successfully nationwide over the last 50 years. We have extensive experience in helping high-growth franchises like Jersey Mike’s, and we’re excited to bring our resources to support the company’s continued expansion and technological advancements. We look forward to working with Peter and his team to unlock even more growth opportunities.”
In addition to its focus on expansion, Jersey Mike’s has a strong commitment to community engagement and charitable efforts. The company recently completed its 14th Annual Month of Giving, surpassing $113 million raised for local charities since 2011. Jersey Mike’s also launched the Coach Rod Smith Ownership Program, which provides opportunities for store-level managers to become franchise owners, further supporting its mission of community involvement and empowerment.
The transaction is expected to close in early 2025, pending regulatory approvals and the satisfaction of other closing conditions. Blackstone’s private equity strategy for individual investors is also expected to participate in the deal.
