An account of Jersey Mike's transformation from a humble seaside deli to a sprawling franchise network, as narrated by its founder, detailing how it managed to preserve its original appeal despite its extensive growth.
Jersey Mike's Subs, a name synonymous with fresh and high-quality subs, has come a long way since its humble beginnings as a small deli in Point Pleasant, New Jersey, in 1975. Founded by Peter Cancro, a 17-year-old entrepreneur, the brand has survived recessions, adapted to market changes, and expanded across the United States and beyond.
Cancro started his journey at Mike's Subs at the tender age of 14, earning the right to slice meats. His commitment to quality was evident from the start, as he focused on using authentic, fresh ingredients to create superior sandwiches. This focus on quality helped differentiate Jersey Mike's in a crowded market.
In the early '90s, Jersey Mike's faced financial difficulties due to a recession and bank failures, leading to layoffs and a struggle to maintain growth. However, Cancro never gave up on his vision. He believed in building a "nucleus" - a small collection of shops in the same area that work together to build training teams and master multi-unit operations. This strategy enabled Jersey Mike's to grow beyond a single mom-and-pop store.
The tech bubble burst in the early 2000s deeply hurt local economies that Jersey Mike's had bet on, such as the Research Triangle in North Carolina. Despite these challenges, Jersey Mike's continued to expand, reaching 100 units within its first 10 years and expanding beyond New Jersey into Tennessee and Ohio by the end of the '80s.
In 1987, some customers of the deli started becoming franchisees and opening their own Jersey Mike's locations. The original Jersey Mike's location is now a training facility for franchisees and their managers. To succeed, Jersey Mike's realized that it wasn't just the franchisees who would bear the expenses of each new franchise; the franchisor also had significant costs for training, mentoring, and ongoing support.
Jersey Mike's develops a training manual, divided into modules, that explains every detail learned from years of mom-and-pop operation, including specifics like how long it should take to slice something. The brand continues to prioritize training, with a 2.5-month training program for new owners that includes real-time sub-making and ongoing support.
Today, Jersey Mike's Subs has 2,535 locations and plans to open around 350 locations this year. With an average unit volume of more than $1.3 million, the brand's robust sales performance underlines its successful market positioning and operational effectiveness.
Cancro's vision for Jersey Mike's extends beyond the United States. The company recently undertook significant international expansion plans, notably entering the Canadian market with a development agreement to open 300 locations over a decade. This signals a disciplined but ambitious approach to growth outside the U.S.
Charitable giving was an important part of Cancro's vision from the start, and the company is known for its philanthropic efforts. Despite managing multiple shops presenting new challenges, such as dealing with franchisees who may have different ideas about how to run their stores, Cancro has cultivated a company culture focused on community, giving back, and supporting team members. This cultural foundation has attracted franchisees and employees who embody Jersey Mike's values, strengthening the brand's reputation and operational consistency.
Peter Cancro advises aspiring franchisors to seek out financial support systems, especially in the food industry, as banks may not be willing to provide loans. He also emphasizes the importance of building a strong team and a consistent brand image.
In January 2020, Jersey Mike's was No. 3 on our brand name's Franchise 500 list. With its focus on quality, scalable franchising model, strong leadership, culture aligned with community and franchisee support, and well-executed geographic expansion plans, Jersey Mike's Subs continues to thrive and grow, offering delicious subs to customers across the globe.
[1]: [Article 1 Source] [2]: [Article 2 Source] [3]: [Article 3 Source] [4]: [Article 4 Source] [5]: [Article 5 Source]
- Despite initial financial difficulties due to recessions and bank failures in the early '90s, Jersey Mike's Subs never wavered from Peter Cancro's vision of growth.
- Jersey Mike's Subs, known for its high-quality food, has sustained its success by prioritizing planning, investment in training, and maintaining a consistent brand image.
- By adapting a strategy of building small collections of shops in the same area, Jersey Mike's was able to overcome challenges and expand beyond its humble beginnings.
- The robust sales performance of Jersey Mike's Subs underscores its successful market positioning and operational effectiveness, with an average unit volume of over $1.3 million.
- Following its vision of giving back to the community, Jersey Mike's Subs has built a reputation for its philanthropic efforts, attracting franchisees and employees who embody its values.
- With ambitious growth plans and a focus on quality, Jersey Mike's Subs continues to thrive, offering fresh subs to customers in over 2,500 locations worldwide. [1, 2, 3, 4, 5, Source: Article 1, Article 2, Article 3, Article 4, Article 5]
