From Humble Beginnings to Billionaire Status: The Jersey Mike’s Story
A Chance Encounter Leads to a Life-Changing Decision
In 1975, Peter Cancro was just a senior in high school with big plans to study law and political science at the University of North Carolina at Chapel Hill. However, his life took an unexpected turn when his mom suggested he buy the sandwich joint he had been working at since he was 14. Initially, he laughed at the idea, but after giving it some thought, he became determined to make it happen.
Securing a Loan and Taking the Leap
Cancro needed $125,000 to seal the deal, which is equivalent to nearly $750,000 today. He managed to secure the loan from a former football coach who was also a banker. This bold move made him the sole owner of Mike’s Subs before he even graduated from high school.
Overcoming Adversity and Achieving Success
Fast-forward nearly 50 years, and Jersey Mike’s Subs has grown to have almost 3,000 locations worldwide. The company’s sales have been impressive, with $3.3 billion in revenue in 2023 and an average annual sales growth of about 20% since 2019. However, Cancro faced significant challenges along the way, including a series of bank failures in the Northeast in 1991 and the dot-com bubble burst in 2002.
A Risky Decision Pays Off
In 2006, Cancro made a bold decision to give the stores a facelift, investing $15 million in retrofits. This move paid off, and by 2007, the company was back on an upward trajectory.
The Future of Jersey Mike’s
Today, only 1% of people who apply to own a Jersey Mike’s franchise are approved. The investment required to open a store front ranges from $200,000 to $1.3 million, but the returns can be substantial, with traditional locations bringing in an average of $1.2 million a year in sales. Following the recent acquisition by private equity giant Blackstone, Cancro will retain a minority but significant equity stake in Jersey Mike’s and continue to lead the company as CEO.
A New Chapter for Jersey Mike’s
With Blackstone’s support, Cancro believes that Jersey Mike’s is still in the early stages of its growth story. As the company looks to the future, it’s clear that Cancro’s determination and perseverance have paid off, making him a billionaire in the process.
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