Fast-casual sandwich franchisor Jersey Mike’s Subs reached an agreement to sell a majority ownership position to asset manager Blackstone.
Jersey Mike’s Founder and CEO Peter Cancro will maintain a major equity stake and will continue to lead the business. Teaming with Blackstone is intended to accelerate Jersey Mike’s growth beyond the U.S. market and expand its technology and digital transformation.
“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. 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,” Cancro said.
Blackstone has a long history of successfully propelling the growth of leading franchisors, including in its previous acquisitions of Hilton Hotels and SERVPRO. The asset manager has also recently invested in Tropical Smoothie Cafe and 7Brew.
About Jersey Mike’s Subs
The submarine sandwich stores are known for having fresh sliced and grilled subs since 1956 when the shop opened as Mike’s Subs in Point Pleasant, New Jersey. Peter Cancro bought the shop n 1975 when he was 17 years old and began franchising the business in 1987 when he changed the name from Mike’s Subs to Jersey Mike’s Subs. Jersey Mike’s is now the second-largest sub-style sandwich chain after Subway.
With more than 3,000 locations nationwide, the company has been recognized as one of the fastest-growing fast-casual restaurant chains in America and ranked #2 on Entrepreneur’s 2024 Franchise 500.
What they’re known for
Jersey Mike’s is known for its authentic East Coast-style subs, made with onions, lettuce, tomatoes, and a signature olive oil blend, red wine vinegar, and spices. They use private labeled meats and cheeses that are sliced fresh for each sub sandwich.
“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. Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes,” said Peter Wallace, a Senior Managing Director at Blackstone.
“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,” Wallace added.
Giving back is central to Jersey Mike’s mission. The company recently completed its 14th Annual Month of Giving, surpassing over $113 million raised for local charities since 2011. It has also launched the Coach Rod Smith Ownership program, which helps provide store-level managers greater opportunities to become Jersey Mike’s franchise owners.
About Blackstone
Blackstone is the world’s largest alternative asset manager, with more than $1 trillion in assets under management (AUM). Blackstone serves institutional and individual investors by building strong businesses that deliver lasting value. Our scale — with ~12,600 real estate assets and 250 portfolio companies — enables us to invest in dynamic sectors positioned for long-term growth.