Peter Cancro, the founder and CEO of Jersey Mike’s Subs, has announced his decision to step down from his leadership role after the recent $8 billion sale of the company, a move that has elevated his financial status to that of a multibillionaire. This transition marks a significant milestone in the history of Jersey Mike’s, a popular fast-casual sub chain that has seen tremendous growth and expansion over the past decades.
Effective April 28, Cancro will hand over the reins to Charlie Morrison, who previously served as the CEO of Wingstop. The announcement came via a press release, which highlighted Morrison’s task of building upon Jersey Mike’s existing momentum and driving its further expansion not only within the United States but also in international markets. Given Morrison’s extensive background in the fast-food industry, there is considerable optimism surrounding his appointment.
Despite this leadership change, Cancro will not completely detach from the company that he has nurtured for half a century. He will retain his position as chairman of the board and continue as a “significant minority shareholder.” This ensures that he remains involved in the company’s strategic direction while allowing Morrison the autonomy to implement new ideas and growth strategies.
In expressing his confidence in Morrison’s capabilities, Cancro emphasized that he considers him the “ideal” candidate to assume the role of CEO. Morrison’s track record speaks for itself; he was instrumental in Wingstop’s impressive growth during the decade he led the company, which saw its stock value quadruple before he exited in 2022. In Cancro’s words, Morrison possesses the experience necessary to lead Jersey Mike’s into its next chapter, especially following a transformative period marked by substantial changes in ownership structure.
Having sold a notable stake in Jersey Mike’s to the private equity firm Blackstone for $8 billion, the restaurant chain has concluded nearly seventy years as an independent business, facing increased competition from established brands such as Subway. This sale not only underlines the market’s recognition of Jersey Mike’s potential but also positions the brand advantageously in the fast-food sector.
Peter Cancro’s journey with Jersey Mike’s began in 1971 when he took a job at the original restaurant located in New Jersey while still a high school student. By the age of 17, he had purchased the store, which was then known as Mike’s Subs. Under his leadership, he rebranded it and began franchising, a strategy that led to the rapid expansion of the chain with over 3,000 locations currently operational across the United States and Canada, along with plans to extend into Europe and the UK.
Financially, Cancro has benefited from his tenure; the Bloomberg Billionaire Index currently estimates his net worth to be around $7.5 billion, a testament to both his business acumen and the success of Jersey Mike’s. The chain has now grown to be the second-largest in sandwich sales, trailing only Subway. According to data from QSR Magazine, each Jersey Mike’s location generates about $1.35 million annually, significantly outperforming the average Subway location, which earns less than $500,000.
The deal with Blackstone is particularly noteworthy as it marks one of the most significant transactions in the fast-food industry since Subway was sold to Roark Capital for approximately $9.6 billion the previous year. As Jersey Mike’s continues on its upward trajectory, the combined expertise of Cancro, as chairman, and Morrison, as CEO, will be crucial in navigating future challenges and harnessing new opportunities for growth. The food service market remains competitive, but Jersey Mike’s has strategically positioned itself to not only defend its standing but also increase its share in the burgeoning sub and sandwich sector.