• Facility Design Project of the Month: The Fresh Food Company at The University of Alabama

  • Bonanza Leaves the Buffet Behind

  • DSR of the Month: Luke Green, Rapids Foodservice Contract & Design

Foodservice News

Read more Foodservice News

Blog Network

jCarbonara
Joe Carbonara

Labor Lessons

Real growth continues to be hard to come by for the foodservice industry. In fact, overall customer traffic was flat through the first quarter of 2016, according to The NPD Group, a market research firm covering the foodservice industry. Revenues and customer traffic may be inching along, but one area growing at breakneck speed is labor costs.

Read more...

jMartinez
Juan Martinez

Post NRA Thoughts: My Labor Costs are Killing Me! What Can I do About It?

The National Restaurant Association’s annual trade show has come and gone to much fanfare. From what I saw and read, the participation was phenomenal. We were able to bring our full consulting team from all of our offices and even made time to break some bread together.  This year, I also participated in a panel discussion that explored unit economics  and was moderated by Steve Romaniello, managing director of Roark Capital.

Read more...

jStiegler
Jerry Stiegler

Study Projects Compound Growth Rate for U.S. Foodservice Market

Restaurant sales in June were slower than in May. A new report looks for foodservice to grow 3.33 percent in the next 5 years. A C-store chain says it will open at least 600 locations in the next few years. Taco Bell expands their Cantina concept. These stories and a whole lot more This Week In Foodservice.

Read more...

Highlights

Chain Innovators: Jersey Mike’s

Currently in a major growth mode, Jersey Mike's opened 50 stores in 2010, projects opening more than 65 locations this year and will hit the 500-site mark by the end of 2011. This is telling for a sub concept that got its start back in 1956 as a humble seaside sandwich store in Point Pleasant, N.J.

Jersey Mike'sThe man behind the expansion is CEO and founder Peter Cancro, who bought the original Jersey Mike's restaurant as a 17-year-old high school student back in 1975. After he began franchising in 1987, growth exploded. There are now Jersey Mike's outlets in 30 states, with more on the way.

"Our goal is to double the number of stores in the next five years," says Hoyt Jones, president. Approximately 5 percent of the stores are company-owned, with the rest franchised. The plan is to eventually increase the corporate site amount to 10 percent.

Jersey Mike's positions itself as an authentic East Coast sub shop with meats and cheeses hand-sliced to order. Each store includes a flat top grill for cooking cheesesteaks, hot pastrami sandwiches and Reubens. Bread is baked on premises daily.

The store décor and ambiance is reminiscent of Point Pleasant on the Jersey Shore. Soft colors and a 1956 postcard mural of the beach are staples at every location. The concept has remained the same for the past 55 years.

Speed of service and customer interaction are key to the concept. Employees are encouraged to connect with everyone coming through the door while assembling sandwiches at the counter.

Although financing has been a challenge the last couple of years, Jersey Mike's has been able to attract franchisees with multi-unit experience and capital. "Many of our franchisees have had previous restaurant and business experience," Jones says. "They are coming in with their own capital and banking relationships or bringing in equity partners. This has helped us maintain our growth [during the down economy]."

Site layouts are real-estate driven, with an average footprint of 1,600 sq. ft. in mainly inline strip malls.

Fast Facts

  • Year founded: 1956
  • Headquarters: Manasquan, N.J.
  • Menu specialties: Authentic East Coast-style subs on fresh baked bread
  • Service model: Fast-casual
  • Units: More than 500 locations open and in development
  • 2010 growth: Added 50 units
  • Projected 2011 growth: 65 additional units
  • Key expansion markets: California; Florida; Illinois; Minnesota; Texas; and Washington, D.C.
  • Typical location: In line
  • Average unit size: 1,600 sq. ft.
  • Average covers per day: 200
  • Average check: $11
  • Total unit cost: $250,000–$350,000
  • Average kitchen space: 350–400 sq. ft.
  • Total equipment investment per unit: $65,000

Key Players

  • Founder and CEO: Peter Cancro
  • President: Hoyt Jones,
  • Chief Operating Officer: Michael J. Manzo
  • Smallwares & Equipment Distributor: Earnest Ventures, Inc
  • Food Distributors: SYSCO
  • Architect: Individual by franchisee
  • Design: Engstrom Design Group
Related Articles