A Billionaire’s Journey: How Peter Cancro Built a Sub Sandwich Empire
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 Unlikely Entrepreneur
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. When he thought about it more, though, “the light switch went off,” he said. 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.
A Difficult Road to Success
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. Nearly 50 years later, the chain has just under 3,000 locations worldwide. In 2023, the company brought in $3.3 billion in sales and has had an average annual sales growth of about 20% since 2019, according to food service consulting firm Technomic.
The Company’s Growth and Challenges
The company’s growth hasn’t come without challenges. In 1991, four years after the company began franchising, the company struggled to secure the cash to pay its bills due to a series of bank failures in the Northeast, Cancro told “The Jedburgh Podcast.” He had to fire all of his corporate staff, including his brother. “It was a tough time: 1991 [was] my toughest recession, even beyond 2008,” Cancro said, adding that he thought about taking the company public or selling some of his stake but didn’t. In 1994, the situation improved, and the chain expanded into North Carolina soon after.
Conclusion
Today, Jersey Mike’s is a global phenomenon with a valuation of $8 billion, including debt, and Cancro’s net worth is estimated at $7.5 billion. Despite the challenges the company has faced, Cancro remains committed to leading the company and believes it has “still in the early innings of Jersey Mike’s growth story.”
FAQs
Q: How did Peter Cancro buy Jersey Mike’s?
A: Cancro bought the business with a $125,000 loan from his football coach when he was just 17 years old.
Q: What is the current valuation of Jersey Mike’s?
A: The company is valued at around $8 billion, including debt.
Q: How many locations does Jersey Mike’s have worldwide?
A: The company has just under 3,000 locations worldwide.
Q: What is the average annual sales growth of Jersey Mike’s?
A: The company has had an average annual sales growth of about 20% since 2019.
Q: What is Peter Cancro’s net worth?
A: Cancro’s net worth is estimated at $7.5 billion.
Q: Will Peter Cancro remain involved with the company after the acquisition by Blackstone?
A: Yes, Cancro will retain a minority but “significant” equity stake in Jersey Mike’s and will continue to lead the company as CEO.
