Washingtons Sandwich Wars Jersey Mike’s Sold To Blackstone

Let me start with this—if you know a great local sub shop, I need you to hit me up. I'm on the hunt for a spot that serves up a seriously good sandwich that isn’t a national chain. But if we’re talking chain subs, there’s only one name that stands out to me: Jersey Mike’s. The fresh-cut meats, the massive sandwiches, and that classic "Mike's Way" are hard to beat. But here’s the plot twist: Jersey Mike’s is being sold. Yep, you heard that right.

$8 billion

So, what’s going down? Jersey Mike’s, the fan-favorite fast-casual sandwich shop, has agreed to sell a majority stake in the business to Blackstone, a private equity firm, for a jaw-dropping $8 billion. That’s no small change. But don’t worry, Peter Cancro, the founder and current CEO, is sticking around. He’s keeping a "significant equity stake" and will continue to lead the company. Cancro’s been at the helm since he founded Jersey Mike’s nearly 50 years ago, so he’s not going anywhere anytime soon.

And if you think Jersey Mike’s is just some small-time player, think again. The brand has been on a major growth streak, with sales jumping an average of 24% annually over the past five years. That’s some serious outperformance compared to other sandwich chains. The average Jersey Mike’s location is raking in $1.3 million in sales per year—that’s more than double what a typical Subway store makes.

Blackstone

Now, Blackstone is no stranger to the restaurant game. They’ve also snapped up Tropical Smoothie Café for $2 billion, and they know how to fuel growth. With this deal, they’re looking to pump in more capital and resources to take Jersey Mike’s to the next level. Expect bigger expansion, more locations, and even some tech investments to make your sub shop experience even better.

This deal fits into a broader trend where private equity firms are scooping up franchise restaurant brands, despite some concerns about weaker sales across the industry. For context, Subway was also sold last year for $9.6 billion to Roark Capital, so this $8 billion deal for Jersey Mike’s is right in line with recent industry trends.

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Always For Sale

Cancro’s been toying with the idea of selling Jersey Mike’s for a while now, calling the company "always for sale." It looks like the timing was just right for this major move. So, what’s next for Jersey Mike’s? With Blackstone’s backing, I think we’re only going to see bigger things ahead. And hey, if you're like me and want to see more local sub shops rise up against the big guys, let's keep supporting them—but if you’re craving a solid chain sub, you know where to go!