Exclusive: Blackstone Nears Deal for Jersey Mike's Subs

What's the News?

Blackstone Group Inc. is in advanced talks to acquire Jersey Mike's Franchise Systems Inc., a fast-casual submarine sandwich chain, according to people familiar with the matter.

A deal could be announced in the coming weeks, the people said, asking not to be identified because the discussions are private. Terms of the potential transaction couldn't immediately be learned.

Blackstone's Big Buy

The deal would mark Blackstone's latest investment in the restaurant industry, a sector that has been battered by the Covid-19 pandemic but is now starting to recover.

In recent years, Blackstone has acquired stakes in companies such as Shake Shack Inc., Ruth's Hospitality Group Inc. and Dave & Buster's Entertainment Inc.

Jersey Mike's: A Growing Chain

Jersey Mike's, founded in 1956, has more than 2,000 locations across the United States. The company has been growing rapidly in recent years, with sales reaching $2.2 billion in 2021, according to data from Technomic.

Jersey Mike's is known for its fresh-sliced meats and cheeses, as well as its commitment to customer service.

What's Next?

If a deal is reached, it would give Blackstone a major presence in the fast-casual submarine sandwich market.

It would also mark another step in Blackstone's aggressive investment strategy in the restaurant industry.