Jersey Mike’s Subs was founded in 1956 and currently has 1,842 locations in 48 states and the District of Columbia. The brand focuses on serving an authentic sub sandwich, served Mike’s Way with onions, lettuce, tomatoes, olive oil blend, red wine vinegar, and spices, which is what differentiates Jersey Mike’s Subs from others. The company is committed to providing its customers with quality, freshness, and authenticity, which has helped the brand win Best Sub and Best Sandwich Awards in almost every market it serves.
Jersey Mike’s Subs Update
Jersey Mike’s Subs has weathered the pandemic better than most through strong financials, efficient store operations, and dedicated company culture. During 2020 and through the height of the pandemic, the company’s year-over-year sales growth was flat, compared with many other brands that were down by double-digit percentages. This is because the brand was already highly focused on digital orders, and brand recognition and high-quality products kept customers returning. Further, the brand committed to serving communities in need by donating millions of free sandwiches during the crisis. This not only heightened brand recognition but enhanced connections between the company and its customers.
Jersey Mike’s was quick to pivot and comply with CDC guidelines. Although the brand is mainly
a take-out business due to the limited seating and the average unit space being 1,200 to 1,400 square feet, the brand set-up safe zones with tables in front of the counters to allow adequate space between employee and customer as well as signage. According to Founder and CEO Peter Cancro, the company relies on technology. “We have tremendous POS and digital opportunities set up,” said Cancro. He reported 25 percent of sales were order online and pick-up in store, ten percent mobile orders, and 15 percent third-party orders. Roughly 50 percent of sales come from take-out, curbside, or third-party, therefore, Jersey Mike’s saw minuscule decline when taking away indoor dining. The company has about 475 owner-operators, with a broad range of mom-and-pop owners and multi-unit operators. By doing the math, each owner-operator has a handful of stores. Recently, Jersey Mike’s Subs announced a $150 million investment in retrofits, despite the coronavirus pandemic hitting the industry. The previous retrofits occurred in 2009, 2010, and 2011. This refreshed look will boast new tables and chairs, back-line tile, counters, overall flow, and wall graphics. It will cost about $75,000 per unit, and the inside of the locations will be brand-new. Unique to the industry, Jersey Mike’s Subs will front the cost of most retrofit expenses.
Along with the retrofit, Jersey Mike’s Subs will add a back-line counter, new templates, a new register, and a new customer-facing terminal. The back-line counter will be a separate pick-up station for those who order online or through third-party delivery, and back-line staff will be dedicated to making these orders. All retrofits are scheduled to be completed by July 2021. Jersey Mike’s Subs is expected to have a new, refreshed look nationwide, which will help the brand and Jersey Mike’s Subs locations stay relevant.