From $125,000 Loan to $8 Billion Deal: The Jersey Mike’s Journey

At the age of 17, Peter Cancro made a bold decision that would turn him into a billionaire. With a $125,000 loan from his football coach, he bought a small sandwich shop called Mike’s Subs in Point Pleasant, New Jersey. At the time, Cancro was still in high school and had no intention of going into business. His plans were to study law at the University of North Carolina at Chapel Hill.

However, after some encouragement from his mother, Cancro reconsidered. What seemed like an improbable move quickly became a reality. The next day, he secured the loan from his coach, who was also a banker. By the time he graduated high school, Cancro was the proud owner of the sandwich shop.

The store was eventually renamed Jersey Mike’s Subs, and today it has grown into a global chain with nearly 3,000 locations. On Tuesday, the company’s latest milestone came when private equity firm Blackstone announced its agreement to acquire a majority stake in Jersey Mike’s. This deal, valued at $8 billion, increased Cancro’s net worth to an estimated $7.5 billion, according to Bloomberg.

In the early years of his ownership, the company faced many hurdles. In 1991, following a series of bank failures in the Northeast, Cancro found himself struggling to keep the business afloat. He had to make difficult decisions, including letting go of his entire corporate staff. Yet, he refused to give up. By 1994, the company was on the mend, and Jersey Mike’s expanded into North Carolina.

By 2006, the business hit another rough patch, as the aftermath of the dot-com bubble burst and aging stores began to impact performance. Cancro took a risky but necessary step, investing millions in store renovations. This decision paid off, and by 2007, Jersey Mike’s was back on track.

Today, Jersey Mike’s boasts an impressive annual sales growth of about 20% since 2019, with $3.3 billion in sales in 2023 alone. The company’s success continues to attract interest, as only 1% of franchise applicants are approved. Opening a new location can cost anywhere from $200,000 to $1.3 million, but with traditional stores averaging $1.2 million in sales per year, the investment can be highly profitable.

Cancro, now 67, will retain a minority but significant equity stake in the company following the deal. He will continue to serve as CEO after the acquisition, which is expected to close early next year. Reflecting on his remarkable journey, Cancro expressed confidence in the company’s future: “We believe we are still in the early innings of Jersey Mike’s growth story.”