WALL TOWNSHIP — Jersey Mike’s Subs, the nationally franchised sandwich company founded at the Jersey Shore, is set to be acquired by the investment management company Blackstone Inc.
Blackstone announced Tuesday that it is set to acquire a majority stake in the sandwich chain, while Jersey Mike’s founder and CEO, Peter Cancro, will maintain a significant equity stake and continue to lead the business. The deal, according to a Reuters source, is said to be valued at about $8 billion.
At the age of 14, Cancro began working at the company’s original Point Pleasant location, which was founded in 1956 as Mike’s Subs. He acquired the location in 1975 at age 17 and began franchising units in 1987.
Jersey Mike’s currently has more than 3,000 locations nationwide, open and in development. Local locations include Belmar, Brick Township, Lavallette, Manasquan, Point Pleasant Beach, Point Pleasant and Wall. The Jersey Mike’s training center is located at 1009 Trenton Ave., Point Pleasant and Jersey Mike’s headquarters is located at 2251 Landmark Plaza, Wall.
While other companies use the cachet of New York City for branding purposes, Jersey Mike’s leans into its Garden State roots and cultivates a Jersey vibe, with images of beach badges and “Greetings from Point Pleasant Beach” postcards on its website, surfboards on the walls of its stores, “GabbaGhoul” hoodies for sale, and Asbury Park’s Danny DeVito in its commercials. Since 2021, the company has had the naming rights for Rutgers University’s basketball venue in Piscataway, officially known as Jersey Mike’s Arena. In 2015, franchise trade journals reported that Jersey Mike’s had become the “official sub sandwich shop” of the New York Yankees, a partnership that boosted brand recognition across the Hudson.
According to Blackstone, the partnership is intended to accelerate Jersey Mike’s expansion across and beyond the U.S. market, as well as expand its continued investment in technology and digital transformation.
Cancro, who could not be reached by press time, stated in a press release from Blackstone, “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.”
Central to Jersey Mike’s culture is supporting charities, schools and other organizations through fundraisers and donations. Among its beneficiaries have been the pediatric cancer nonprofits The Ashley Lauren Foundation in Brielle and The Valerie Fund in Maplewood, as well as Wreaths Across America, based in Maine, which honors deceased veterans with wreaths on their graves. 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 helps provide store-level managers greater opportunities to become Jersey Mike’s franchise owners.
Jersey Mike’s is recognized as one of the fastest-growing fast-casual restaurant chains in America, according to Blackstone, and ranked number two on Entrepreneur’s 2024 Franchise 500.
Peter Wallace, a senior managing director at Blackstone, stated, “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.”
“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,” said Wallace.
In the release, Wallace noted his favorite order is the #13 Original Italian, Mike’s Way.
Doug Vitale, the mayor of Cancro’s hometown of Point Pleasant Beach, said that he considers Jersey Mike’s to be a cornerstone of Jersey’s culinary culture.
“I frequent Jersey Mike’s several times a week, either for lunch or dinner,” said Vitale. “My go-to order fluctuates between the club sub and the tuna fish. For the locals, Jersey Mike’s growth is a source of immense pride. It’s not just a sandwich shop; it’s a piece of New Jersey culture being shared with the world.”
Robert Sabosik, mayor of Point Pleasant, told The Coast Star, “I am very happy for Peter Cancro because for the last 50 years he has helped the entrepreneurial spirit of many Americans achieve their dream of owning their own businesses. He is a shining example of how one individual can change the landscape of small entrepreneurs. I congratulate him and I wish him nothing but the best on his future endeavors. He is a great asset to the town of Point Pleasant Borough and we are all so proud of him.”
Mayor Sabosik’s go-to order when he visits Jersey Mike’s is the #8, the Club Sub, which consists of turkey, ham, provolone, applewood smoked bacon and mayo.
According to Blackstone, the transaction is expected to be completed in early 2025, subject to the satisfaction of certain closing conditions, including applicable regulatory approvals.
Blackstone’s previous acquisitions include Hilton Hotels, SERVPRO, Tropical Smoothie Cafe and 7Brew.
Guggenheim Securities and Morgan Stanley & Co. LLC are acting as financial advisors and White & Case LLP served as legal counsel to Jersey Mike’s. Barclays and Bank of America are acting as financial advisors and Simpson Thacher & Bartlett LLP served as legal counsel to Blackstone.
Tommy Watters, Alex Dyer and Kelly-Jane Cotter also contributed to this story.
 6x10 4c.jpg)
