Continued Expansion and Fair Wages Help Jersey Mike's Stay a Cut Above the Competition Early adoption of delivery apps and staying focused on being a community-oriented chain propelled the sub giant to the #4 position on our Franchise 500 ranking.

By Margot Boyer-Dry

This story appears in the January 2022 issue of Entrepreneur. Subscribe »

Courtesy of Jersey Mike’s Subs

Started franchising: 1987 Total units: 1,973 Cost to open: $144.7K-$786.2K

When most people dream big, they think of going to the city.

Jersey Mike's does the opposite. Founded in small-town New Jersey, the sub shop has always focused on serving small communities, and 65 years later it's delivered so well on that commitment that it has more than 2,000 locations around the country. Jersey Mike's just scored its highest Franchise 500 ranking in company history (as well as the fourth consecutive year on the Top 10).

"The further we go out, the better," says Peter Cancro, Jersey Mike's CEO. "We believe we can open as many as 8,000 to 10,000 stores in the U.S. because we're outside of Raleigh."

Related: This Entrepreneur Borrowed $125,000 as a Teen, Then Used It to Build the $1 Billion Jersey Mike's Brand

Distinct from other chains that look for density, Jersey Mike's optimizes for communities that will keep coming back for fresh, made-to-order sandwiches. That's part of why franchisees are seeing such great returns, the brand says: Its stores reach an average of about 20% EBITA margins across the business.

One other standout offering at Jersey Mike's? Dinner.

The chain's hot ­sandwiches have earned it the largest dinner percentage in the sandwich sector, with 40% of sales happening in the evening. A digital integration helps: Jersey Mike's app and third-party integrations with Uber and DoorDash allowed digital ordering to swell to 52% of its business during the pandemic, up from 15%. Now it's leveled out at 40%, a number that's bolstered by a new rewards program rolled out in August 2021.

But for Jersey Mike's, serving communities isn't just about feeding them; it's about employing them. Managers make an average of $115K a year (in corporate stores); assistant managers get a percentage of their store's profits; and the tip can for line workers averages $4 an hour per worker, boosting hourly wages from, say, $12 to $16.

Related: After Nearly Going Bankrupt, How Franchise Jersey Mike's Fought Back and Won

With such emphasis placed on team value, 85% of their franchise growth over recent years has come from within, a trend that the brand is fostering intentionally through its Coach Rod Smith Ownership Program. The initiative sponsors new franchisees from within the company's ranks with business loans and mentorship.

With continued growth, Cancro estimates the franchise will total 3,000 units within three years, and it's targeting being up 7%-10% in same-store growth in 2022. "We're riding a wave," says Cancro. "No one ever knew about us. And the last two years, they do."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Thought Leaders

10 Things I Wish I Knew Before I Took My Company Public

What I wish I would have known through the many turmoils of experience that lead to necessary wisdoms for company survival.

Business News

Fans of Costco's $1.50 Hot Dog Combo Are In for a Big Surprise

Costco CEO Ron Vachris announced a change that's coming soon to the company's food courts.

Devices

Business Owners are Grabbing as Many of These MacBooks as They Can

The Touch Bar is uniquely suited to the multitaskers, and it's only $399.99

Leadership

Gen Z Is Redefining the Workplace — and Companies Must Adapt or Face Losing Talent

The power dynamic in the workplace is shifting as young workers prioritize individuality and meaningful work over climbing the corporate ladder.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Uber's CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced

Uber CEO Dara Khosrowshahi says the jobs of human drivers are safe for the next decade, but after that, another type of driver will take over.