From High School Student to Billionaire: The Rise of Jersey Mike’s Subs
From Humble Beginnings to Global Success
When Peter Cancro bought Mike’s Subs as a 17-year-old with a $125,000 loan from his football coach, he wasn’t even old enough to legally slice cold cuts at the Point Pleasant, New Jersey, sandwich joint. The shop, which he ended up renaming Jersey Mike’s Subs, has since made him a billionaire.
The Early Years
In 1975, Cancro was just a senior in high school who didn’t want to go into business. He had plans to study law and political science at the University of North Carolina at Chapel Hill. The night his mom suggested he buy the business he’d been working at since he was 14, he laughed, Cancro told Forbes in August. However, he thought about it more, and "the light switch went off." He called the restaurant owner the next day, and the owner told Cancro he had a week to find $125,000, Cancro told "The Jedburgh Podcast" in 2021.
The Turning Point
By the end of the week, he had secured the loan, worth nearly $750,000 in today’s dollars, from a former football coach who happened to be a banker. Cancro became the sole owner of Mike’s Subs before even graduating from high school.
Challenges and Comebacks
The company’s growth hasn’t come without challenges. In 1991, the company struggled to secure the cash to pay its bills due to a series of bank failures in the Northeast. Cancro had to fire all of his corporate staff, including his brother. However, he refused to give up and made a risky decision to give the stores a face lift. "I said, ‘I’ll put everything on the table,’ and we paid for the retrofits," he said on the podcast. "It was only like $15 million total, but it was all the money in the world back then."
Recent Developments
On Tuesday, private equity giant Blackstone announced that it had entered into an agreement to buy a majority of Cancro’s company. The deal reportedly valued Jersey Mike’s Subs at around $8 billion including debt, bumping Cancro’s net worth to an estimated $7.5 billion, according to Bloomberg. Cancro will retain a minority but "significant" equity stake in Jersey Mike’s and continue to lead the company as CEO following the completion of the acquisition, which is expected early next year.
Conclusion
Jersey Mike’s Subs has come a long way since its humble beginnings in New Jersey. From a 17-year-old with a loan from his football coach to a global brand with over 3,000 locations worldwide, the company has faced its fair share of challenges and comebacks. With its recent valuation of around $8 billion, it’s clear that Cancro’s entrepreneurial spirit and determination have paid off.
Frequently Asked Questions
Q: How did Peter Cancro become the owner of Jersey Mike’s Subs?
A: Cancro bought Mike’s Subs as a 17-year-old with a $125,000 loan from his football coach.
Q: How did the company overcome its financial struggles in the 1990s?
A: Cancro made a risky decision to give the stores a face lift, which cost around $15 million.
Q: What is the current valuation of Jersey Mike’s Subs?
A: The company is valued at around $8 billion including debt.
Q: What is Peter Cancro’s net worth?
A: Cancro’s net worth is estimated to be around $7.5 billion.
