MANASQUAN, N.J. AND NEW YORK – Jersey Mike’s Subs, a leading franchisor of fast-casual submarine sandwich stores, announced it has reached an agreement whereby private equity funds managed by Blackstone – led by Blackstone’s most recent flagship private equity vehicle – will acquire a majority ownership position in Jersey Mike’s.
Jersey Mike’s Founder and CEO Peter Cancro will maintain a significant equity stake and continue to lead the business. The partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market, as well as its continued investment in technology and digital transformation.
Blackstone has a long history of successfully propelling the growth of leading franchisors, including in its previous acquisitions of Hilton Hotels and SERVPRO – and has also recently invested in Tropical Smoothie Cafe and 7Brew.
Cancro began working at the company’s original Point Pleasant, N.J. location at the age of 14, which was founded in 1956 as Mike’s Subs. He acquired the location in 1975 at age 17 and began franchising units in 1987.
Today, Jersey Mike’s is a premier national franchisor with more than 3,000 locations nationwide open and in development, and continues to be recognized for its high-quality and freshly prepared submarine sandwiches, and passion for its authentic products and customers.
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.
“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. “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.”
Peter Wallace, a Senior Managing Director at Blackstone, noted Jersey Mike’s has “grown for more than half a century by maintaining an unrelenting focus on quality,” 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,”Wallace said. “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.”
The transaction is expected to be completed in early 2025 subject to the satisfaction of certain closing conditions, including applicable regulatory approvals. Blackstone’s private equity strategy for individual investors is also expected to invest as part of the transaction.
