Blackstone Buys Majority Stake in Jersey Mike's Subs, Worth $8B

Blackstone is acquiring a majority stake in Jersey Mike’s Subs, valuing the franchisor at $8B.
The investment supports Jersey Mike’s plans to expand internationally and accelerate growth in the U.S., where it already has 3K locations.
Blackstone’s history of successful franchise investments includes Tropical Smoothie Cafe, Hilton Hotels, and Servpro.

Key Takeaways

As reported in Bisnow, Blackstone (BX), one of the world’s largest private equity firms, is diving into the fast-casual dining sector with a major stake in Jersey Mike’s Subs.

The Jersey Mike’s acquisition will build on Blackstone’s expertise in scaling franchise operations while maintaining brand integrity.

Deal Details

The deal, announced Tuesday, underscores the growing appeal of franchised restaurant chains to investors looking to capitalize on scalable business models with strong consumer loyalty.

The partnership, expected to finalize in early 2025, aims to supercharge Jersey Mike’s already impressive growth trajectory as it embarks on international expansion and increases its footprint across the U.S.

History of Growth

Founded more than 50 years ago, Jersey Mike’s has become one of the nation’s largest sandwich chains, with 3K locations and a loyal customer base built on its focus on quality ingredients and consistent customer experience.

In August, the company announced its first international expansion, with plans for 300 stores in Canada over the next few years.
Over the past five years alone, Jersey Mike’s opened 1K U.S. locations, a testament to the brand’s scalability and operational efficiency.

The Playbook

Blackstone’s move into Jersey Mike’s aligns with its proven strategy of investing in high-growth franchised businesses:

Hilton Hotels: Blackstone’s $26B investment in 2007 remains one of the most profitable private equity deals of all time, generating $14B in profits when it sold the stake in 2018.
Tropical Smoothie Cafe: In August, Blackstone acquired the smoothie chain in a deal worth nearly $2B, including its debt.
Servpro: The firm helped expand the disaster restoration franchisor’s presence nationwide.

What’s Next?

With an expected valuation of $8B after Blackstone’s acquisition is completed next year, Jersey Mike’s will cement its position as a leading brand in the competitive fast-casual market.

For Blackstone, this deal further cements its reputation as a powerhouse in franchise expansion, setting the stage for Jersey Mike’s to enter its next phase of global growth.