The Company That Owns Jersey Mike's Also Owns This Health-Inspired Drink Chain
When talking about the best sandwich shops in every state, it's hard to not think of Jersey Mike's. Sure, it's a nationwide chain with sponsorship from celebrities like Danny DeVito (who grew up just down the road from Jersey Mike's first store), but Jersey Mike's is so much more than a brand. It's a true entrepreneurial story with humble beginnings in Point Pleasant, New Jersey. While the sandwich chain has had tremendous success on its own, it may come as a surprise that the company that has a majority stake in Jersey Mike's, Blackstone Inc., also owns Tropical Smoothie Cafe, a national health-inspired chain. Blackstone's acquisition of the two food chains is recent, but its involvement shouldn't be a shock. The investment company has a lengthy, successful history of building brands in multiple industries such as media, hospitality, and digital data.
The Blackstone connection between Jersey Mike's and Tropical Smoothie Cafe starts in 2024. Before that, Tropical Smoothie had been owned since 2020 by Levine Leichtman Capital Partners, buyout firm which also helped build the chain's capital, boosting its already positive potential. Four years later, the time came to expand Tropical Smoothie Cafe's business and implement new technology throughout its locations. Given Blackstone's background, negotiations began, ending with a $2 billion agreement in April 2024. Around that same time, Blackstone showed interest in doing the same for Jersey Mike's, initially putting an acquisition bid in for $8 billion. After on-again-off-again talks, Blackstone reached a deal with Jersey Mike's in November 2024. Under the partnership, Jersey Mike's has expanded into Canada through another partnership with Redberry Restaurants, and is using the momentum from Blackstone's backing to explore doing the same in Europe.
Blackstone may not sound familiar, but you're likely aware of their work
If Blackstone sounds familiar, there's a good reason. The investment firm has worked with other global companies such as Hilton Worldwide. In its 2007 leveraged buyout of the hotel giant, the private-investment firm helped Hilton in many ways, including increasing its room supply by 40% and adding a new brand, Home2, in 2009. Blackstone has also had a hand in boosting other companies like Ancestry in 2020. Admittedly, while Blackstone's reach can be felt across multiple industries, its presence in the culinary crowd is only recent. However, with the acquisition of Jersey Mike's and Tropical Smoothie Cafe (along with Arkansas-based drive-thru coffee chain 7 Brew in February 2024), it's made a $10 billion stamp on the industry for itself. Interestingly, the sale of 7 Brew was the result of a collaboration with the previous majority stakeholder, Jimmy John Liautaud, of Jimmy John's fame.
For financial followers, it'll be interesting to see how Blackstone propels Jersey Mike's and Tropical Smoothie Cafe into the future. Clearly, the investment firm has already made a significant impact, especially considering how Jersey Mike's went from a local sandwich shop to a global franchise. The possibilities are certainly something worth pondering over on your next visit to either franchise brand. Just make sure not to get too distracted, lest you make one of the mistakes everyone makes while ordering.