Ben and Emma Schlotfeldt got their respective starts in Jersey Mike’s as crew members, and Emma says it’s important now as multi-unit franchisees to remember they’re “never too good for the blue apron.”
Winner: Jersey Mike’s Subs
Finalists: Cheba Hut, Potbelly
Instead of going on a honeymoon after their wedding in 2022, Emma and Ben Schlotfeldt bought another Jersey Mike’s Subs store.
The acquisition of the location in St. Anthony, Minnesota, which was the first unit for the brand in the state, was special for the couple as both began their sandwich franchise careers there as crew members more than a decade prior. The deal also added to their collection of stores, which today sits at six in the Minneapolis metro.
The pair, quick to praise the brand for its successful model but adamant about the hard work required to meet their goals, were offered ownership stakes earlier in their tenure as general managers before making the leap to franchisee. Each logged several years at the store level and did stints at corporate, valuable experience they said is paying off as they aim to never stray from an intense focus on operations—or their appreciation for their employees behind the counter.
“You’re never too good for the blue apron. I don’t care if you’ve owned stores for 20 years. If someone in your store is working for you and they need you, you need to put on the blue apron and you cannot think you’re better than that,” said 28-year-old Emma Schlotfeldt. “Because that’s who’s making you your money at the end of the day.”
Return on investment and profitability for the franchisee, both heavily weighted in the Zor Awards evaluation process, put Jersey Mike’s on top in the Breaking Bread category. Franchise stores averaged $1.3 million in sales in 2023, with 46 percent of the 2,138 reporting locations meeting or exceeding that volume. One ding on Item 19 in the brand’s franchise disclosure document? No expense information is provided, also true for finalists Cheba Hut and Potbelly.
The addition of actor Danny DeVito in 2022 as the brand’s first celebrity endorser sparked sales, Jersey Mike’s franchisees say, and his appearances in marketing campaigns continue to resonate.
The lower initial investment range for Jersey Mike’s, starting at $203,586 and going up to $1.3 million, is notable as the other finalists each had startup costs exceeding $600,000 at the low end. The royalty fee for Jersey Mike’s is 6.5 percent, a tick above others in the segment but not out of line in the industry. The marketing fee is 4 percent, plus 1 percent for a corporate advertising and development fund.
Jersey Mike’s continues to increase its brand visibility nationwide, including through sports sponsorships, TV and streaming advertising, and a range of digital marketing channels. The brand in 2022 signed its first celebrity endorser, actor Danny DeVito, and franchisees said the moves are translating not only to broader awareness but also increased sales.
With 322 openings in 2024, Jersey Mike’s hit 3,000 units and new private equity owner Blackstone, which finalized its acquisition of the brand earlier this year, plans to accelerate domestic and international expansion.
Founder and CEO Peter Cancro continues to lead the brand alongside his tenured executive team.
Franchisees said they don’t expect much to change with the sale to Blackstone—maintaining the local sub shop feel is key—but want to see more investments in technology.
“We need to stay way ahead of that curve so we can remain a prominent player in our space,” said Evan Mayer, a 23-unit franchisee in New Jersey.
“I think that’s a really exciting thing, just what can come to the table with maintaining Peter’s roots, but then looking at it from new lenses on where we need to take some of the aspects of our business,” he said. “In design and in customer experience, and then just investment of technology.”
In growing strong stores, the Schlotfeldts emphasized the importance of accountability to a high standard of execution within their teams and for themselves, and said being visible leaders who recognize the contributions of their 150 employees matters.
Evan Mayer
“If you say each store is worth a million dollars or whatever the number is, every single person can make you lose that in one day,” said Emma Schlotfeldt. “So you have to treat them like that at all times.”
Ninety percent of their hires are referrals, she noted, and franchisees and employees alike embrace the community-minded roots of the brand.
“Hospitality isn’t something that you serve, it’s something that you make somebody feel. That’s what we need to focus on,” said Mayer, who got his start at the original Jersey Mike’s store in Point Pleasant, New Jersey, in 1998 and became a franchisee in 2020 when he acquired two stores.
He’s built his team by promoting from within and finding those who embrace and want to carry on a culture of giving that’s foundational to the brand. Supporting charities and community organizations is a big part of what makes the brand successful, he said, and prospective franchisees should want to be that community partner.
“You need to really live and breathe the strong culture, and be excited about building great relationships with people so that you can teach them the business and how to embody the hospitality element of this brand,” he said. “And you have to be very organized and systematic. Like, don’t reinvent any wheels. Follow that playbook and execute that with consistency.”
Training is ongoing in the restaurants, where attention to detail is vital. Mayer noted top-performing franchisees in the system are achieving their financial goals largely because they’re driven by excellence. They embrace repetitive expectation setting and a “perfection is not optional mentality.” Especially as the sandwich category becomes increasingly crowded and competitive.
“It’s not like you can stamp out a bunch of units and manage all the moving parts of the food and the people successfully for a long period of time without those key elements of people who care, people who understand your vision, and people who really look for those details so that it’s better than the rest,” said Mayer. “It’s not just another sandwich.”
Jersey Mike’s Subs
Positives
- To differentiate itself in a crowded sandwich segment, restaurants emphasize their fresh-sliced and fresh-grilled ingredients.
- With an investment range that starts at $203,586, the brand is approachable for first-time franchisees. It’s Coach Rod Smith Ownership program, meanwhile, provides store-level managers the opportunity to become owners.
Use Caution
- With its sale to private equity firm Blackstone finalized earlier this year—founder Peter Cancro maintains a significant equity stake—accelerated expansion is on deck. Franchisees said they hope the same rigor is applied to new franchise applicants to ensure brand standards aren’t diluted in exchange for faster growth.
From its origins as a single sub shop in Point Pleasant, New Jersey, sandwich franchise Jersey Mike’s has grown to more than 3,000 locations, mainly in the United States, with expansion underway in Canada. Through its annual Day of Giving campaigns, the brand has donated more than $113 million to local charities.