Blackstone to acquire majority stake in Jersey Mike’s Subs to fuel expansion

Jersey Mike’s Subs, a fast-casual submarine sandwich chain celebrated for its freshly sliced and grilled offerings, has entered into a landmark agreement with private equity funds managed by Blackstone. Under this agreement, Blackstone, through its flagship private equity vehicle, will acquire a majority stake in the franchise.

Peter Cancro, founder and CEO of Jersey Mike’s, will retain a substantial equity position and continue leading the company. The partnership is expected to accelerate the brand’s growth within and beyond the U.S. market while bolstering investments in technology and digital initiatives. Blackstone has a history of fostering growth in franchisors, with past investments in Hilton Hotels, SERVPRO, Tropical Smoothie Cafe, and 7Brew.

Cancro, who began his career at the original Point Pleasant, New Jersey location at 14, acquired the business at 17. Since franchising began in 1987, Jersey Mike’s has expanded to over 3,000 locations nationwide. The company has gained acclaim as one of the fastest-growing fast-casual chains in the U.S. and ranked second on Entrepreneur’s 2024 Franchise 500 list.

Cancro expressed optimism about the partnership, highlighting Blackstone’s expertise in scaling iconic franchises globally. He added that this collaboration would enable Jersey Mike’s to achieve “greater heights” with significant new investments.

Blackstone’s Senior Managing Director Peter Wallace commended Jersey Mike’s relentless focus on quality and its loyal customer base. He emphasized Blackstone’s commitment to supporting high-growth franchise businesses, affirming that their capital and expertise would help strengthen Jersey Mike’s expansion and technological capabilities.

Jersey Mike’s commitment to giving back has been a cornerstone of its mission. The company recently completed its 14th Annual Month of Giving, raising over $113 million for local charities since 2011. Additionally, its Coach Rod Smith Ownership program continues to empower store managers to transition into franchise ownership.

The transaction, set to close in early 2025, is subject to regulatory approvals and other conditions. Guggenheim Securities and Morgan Stanley acted as financial advisors to Jersey Mike’s, with White & Case providing legal counsel. For Blackstone, Barclays and Bank of America served as advisors, while Simpson Thacher & Bartlett handled legal matters.