Jersey Mike’s celebrated its 55th anniversary in March, but not much has changed in the Manasquan, N.J.-based sub chain’s approach to the menu items it offers, according to founder and chief executive Peter Cancro. The 500-unit company still uses the same recipe it began with more than five decades ago.
What is changing at Jersey Mike’s is its growth strategy. The chain is accelerating expansion in new and existing markets like Los Angeles, Chicago, Texas, Wisconsin and Minnesota.
Meanwhile, Jersey Mike’s has managed to emerge from the downturn on a positive note, with same-store sales increases running 4 percent to 5 percent.
Recently, Cancro and his team sat down with Nation’s Restaurant News and spoke about Jersey Mike’s expansion plans, marketing and the impact of rising commodity costs on business.
What plans do you have to grow beyond your current 500 locations?
Over the next five years we plan to double our number of locations. We need to expand in markets where we have already established a presence. Places like L.A., which is the fastest-growing market, Chicago, and Tampa. We need to get where we our introducing 150 new units a year.
How are you able to manage the rising commodity costs that are affecting restaurant operators everywhere?
Well, we’ve been working with … our distributor, and they’ve been a big help. Prices always go up, they sometimes level off, and they never go down. And we have been OK with that. But we have been able to manage and not have to increase our menu prices.
How do you compete with the bigger chains like Subway and Quiznos?
We don’t really. Our market research has shown that our customers, if they are not coming to us, they are going to places like Chipotle or Panera, not other sub chains. We position ourselves as offering “authentic subs,” while Subway is offering something different altogether. It is more like a salad on a sandwich.
Do you guys market based on a price point?
Not really. Our average check is about $12, so we consider ourselves more of a fast-casual restaurant. It’s not as much about the $5 foot-long that Subway does, but more about the quality of the subs. We slice our own meat and grill our own cheesesteaks, which a lot of places don’t do.
How did you get into the sub business?
I started making subs when I was 14-years-old and bought my first store when I was 17. I had to make up an excuse to miss gym class in order to do so. If you work at a candy store, you would get sick of eating candy. But you can never get sick of eating subs.
Contact Charlie Duerr at [email protected].