Shocker: Is Jersey Mike’s Subs About to be Sold?

The Wall Street Journal reports that Jersey Mike's Subs finally completed a sale to the private equity firm Blackstone.

The sale is the combination of talks that have been ongoing since early this year.

The deal is said to be worth 8 billion dollars.

Jersey's Mike's was the brainchild of Peter Cancro, who opened the first location in 1956.

That location, on Trenton Avenue in Point Pleasant, was located in a convenience store.

Read More:  5 Things You Didn't Know About Jersey Mike's Subs

When it first opened, it was known as Mike's Subs.

That original location remains today as a training center.

Jersey Mike's has been ranked among the top 10 national restaurant franchises by Topfranchise.com.  

Blackstone has a reputation for acquiring franchises that they can grow with little capital investment.

Among the franchises they've acquired are Serve-Pro and 7Brew. Earlier this year, they took over Tropical Smoothie.

Their acquisition of Hilton Hotels was the most profitable private equity investment in real estate ever.

Jersey Mike's has more than 3,000 locations.

Restaurant chains have faced a battle to survive since the pandemic.

The past couple of years have seen numerous restaurant chains file for bankruptcy, close locations, or go out of business.

Among some of the iconic names that have struggled,

🔴  Red Lobster

🔴  TGI Friday's

🔴  Hooters

🔴  Dennys

🔴  IHOP

Restaurant chains are looking for new ways to survive.

Dine Brands, the company that owns IHOP and Applebee's announced plans earlier this year to experiment with combination restaurants.

They are opening restaurants where one side is an IHOP, and the other and Applebee's.

Read More:  Dine Brands Reinvents Applebee's Strategy For Economic Resilience

In other cases, restaurant chains are looking for deep-pocket private equity firms to help them along.

Warren Buffet's Berkshire Hathaway recently purchased a chunk of The Domino's Pizza Chain.

Talks between Jersey Mike's and Blackstone have been on and off for some time.

When the deal is finalized, it's not likely the average customer will notice anything different, other than we may see even more expansion.

Source:  Blackstone Strikes Deal for Jersey Mike’s Subs