Jersey Mike’s got its start in 1956 as a humble sandwich shop on the Jersey Shore. Back then, it was known as Mike’s Submarines. A 14-year-old named Peter Cancro started working at the shop in 1971. At the time, the shop was already on its third owner. In 1975, Cancro was only 17 years old, but his mom suggested he buy the sandwich shop. With an assist from his school’s high school football coach — who was also a banker — Cancro purchased Mike’s Submarines for $125,000.
Cancro realized he had something with this little sandwich shop and soon began thinking about expansion. By 1987, he had changed the name to Jersey Mike’s and began offering franchise opportunities. Today, Jersey Mike’s has nearly 2,700 locations and has grown from the Jersey Shore to a national brand, recording $3.3 billion in sales last year. You’ve probably seen Danny DeVito, a New Jersey native, starring in some of the company’s commercials alongside Cancro.
Almost half a century after he bought the initial Mike’s Submarines location, Cancro still serves as the company’s sole owner and CEO. He’s now rumored to be considering a sale. And according to the rumors, he’s looking to sell Jersey Mike’s for $8 billion. That would instantly make him a multi-multi-billionaire after taxes.
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Jersey Mike’s is the second-largest sub-style sandwich company in terms of sales; only Subway makes more money. Last year, private equity firm Roark Capital bought Subway for $9.6 billion. Inspire Brands, which is affiliated with Roark, purchased Jimmy John’s in 2019 in a deal valued at around $2.3 billion.
Jersey Mike’s has reportedly been in talks with another private equity firm, Blackstone, though there’s no shortage of suitors for these fast-casual brands. Earlier this year, Restaurant Brands announced a $1 billion deal to acquire the largest Burger King franchisee in the United States. Additionally, One Group Hospitality agreed to buy Benihana for $365 million, with the deal including the company’s debt.
A sale involving Jersey Mike’s would fetch an even higher asking price, especially as the company continues to grow. In January, it announced plans for international expansion with several locations in Canada, and Cancro thinks the company can expand to 4,000 locations and nearly double its sales by 2027.
We’ll see if Cancro is still Jersey Mike’s owner by then. Either way, he’s setting himself up for a major payday. Not bad for a high school job.