Say Goodbye To The Quality, Jersey Mike’s
The Jersey Mike’s sub-chain just confirmed a deal to sell a controlling interest in a private equity firm. Guess what that will mean? In my opinion, we’ll see lower-quality subs and higher prices. I invite Peter Cancro to prove me wrong.
The Jersey Mike’s Sale
It was recently announced that controlling interest in the entire chain was sold to a private equity firm called Blackstone for about 8 BILLION Dollars. You read that correctly, EIGHT BILLION. With a “B”. Not million with a “M”.
At first I was amazed at this price but then again, I know Jersey Mike’s to be the best sub shop chain around. The Jersey Mike’s sub is the go-to for me and it’s likely the go-to for you as well. The fresh sliced meats and “Mike’s Way” style of ordering are light years ahead of anything any other sub shop chain offers.
Not only that, but the Jersey Mike’s loyalty program has treated me to many a free regular sub over the years. I’m proud that this quality place was born right here on the Jersey Shore. But now, I see nothing but trouble for the brand as the sale to Blackstone kicks in.
Who is “Blackstone”?
The new major owner of the Jersey Mike’s sub-shop chain is a private equity firm called Blackstone. It’s a high-end private equity firm that dabbles in massive investments that span the entire US economy.
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Now, they’re in the sub sandwich business but they’re also big into owning single-family homes, which is part (but not all) of the reason homes are so expensive these days. Blackstone is big into owning energy stocks, like oil companies and natural gas companies like First Energy. They famously bought Ancestry.com and made changes there that a majority of users complained about. They also have an interest in the dating website Bumble.
From energy to your personal DNA to first dates… to new investments in franchises like Jersey Mike’s.
What Will Happen To Jersey Mike’s?
The press releases and interviews all point to the influx in money being used by Jersey Mike’s to increase their footprint with more sub-shops both domestically and in other countries. Peter Cancro, who founded the Jersey Mike’s chain here on the Jersey Shore in Point Pleasant Beach said, “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.”
All reports say that Peter will stay on to oversee this new phase of Jersey Mike’s.
However, usually when this kind of investment happens the local consumer sees a decrease in quality and increase in prices. There’s also cost-cutting within the corporation through lay-offs, early retirements, and other corporate management tricks.
Are we looking at one less slice of the machine during prep? Are we looking at a shorter piece of bread? Will prices tick up a few cents for the fountain drink?
I truly hope none of that is what happens to the great Jersey Mike’s sub shop. I look forward to years of reasonably priced, made before your eyes with freshly sliced meats and cheese type submarine sandwiches.
I just severely doubt that we’ll see things remain the way they are. What do you think?