Investment giant Blackstone has reportedly been in talks with Jersey Mike’s Subs about acquiring the Manasquan-based sandwich chain in a deal worth $8 billion.

Citing unnamed sources familiar with the matter, The Wall Street Journal reported April 5 that after several months of “on-and-off” discussions negotiations have cooled off.

However, Jersey Mike’s may still be open to a sale, either to another private equity firm or another company, according to the newspaper.

A media representative for Jersey Mike’s could not be immediately reached regarding the report.

Trade publication Restaurant Business Magazine noted that Jersey Mike’s founder and Chief Executive Officer Peter Cancro said last summer he was starting to consider a sale, after noticing the sky-high valuations Wall Street gave other restaurant brands, like Mediterranean fast casual Cava ($4.7 billion).

Since 2019, private equity firms have acquired two other big names in the sandwich space. Subway and Jimmy John’s sold in deals worth $9.6 billion and $2.3 billion, respectively.

Even if his business was sold, Cancro also told Restaurant Business he would want to remain active in the company. In particular, he highlighted Jersey Mike’s charitable activities. That includes the recent Month of Giving campaign and fundraising for organizations such as Feeding America, the United States Tennis Association Foundation and Best Buddies International.

Cancro has been involved with the brand since he was 14, working at the original store in Point Pleasant. He acquired the shop in 1975, when he was 17, using a loan from his high school football coach. Jersey Mike’s began franchising 12 years later.

10,000 units

Jersey Mike’s more than 2,700 locations nationwide posted $3.4 billion in sales in 2023. That marked a 25% increase over 2022, according to the Wall Street Journal.

Over the past year, Cancro and company hit several other milestones. Three Jersey Mike’s outposts launched in Alaska, giving it a presence in all 50 states. The company also kicked off 2024 with plans to go international. Under an agreement with one of Canada’s largest restaurant operators, 300 shops will open across the Great White North by 2034.

In the immediate future, Jersey Mike’s growth agenda remains aggressive. Last fall, Cancro told QSR the chain expects to open 350 more locations this year as well as in 2025. By 2026, he anticipates between 400 to 450 openings. After that, Cranco sees settling into a cadence of about 15% annual unit growth, or roughly 10 to 15 openings per week.

Ultimately, Cancro said he hopes to have 10,000 units. He said he feels that’s achievable thanks to the brand’s focus on quality, training and its robust franchisee support system.