Dive Brief:
- Jersey Mike’s has appointed Charlie Morrison as CEO, effective April 28, the company said in a press release Wednesday.
- Morrison, who previously served as CEO of Salad and Go and chairman and CEO of Wingstop, succeeds Peter Cancro. Cancro is stepping down after 50 years in the role, and will remain chairman of the company’s board of directors.
- The shift in leadership comes nearly six months after Blackstone agreed to acquire a majority stake in Jersey Mike’s, with Cancro retaining an equity stake in the company.
Dive Insight:
Morrison’s accession to the CEO post comes at an important moment for the 3,000-store brand. Jersey Mike’s saw its consumer spending jump 16% last year, according to a Circana report on major restaurant brands, and its store count increased by 13%. With a 15% buyer penetration, per Circana, the sandwich chain has considerable room to continue growing.
The average unit volume for Jersey Mike’s franchised restaurants was about $1,338,874 in 2024, according to the brand’s franchise disclosure document. Subway, Jersey Mike’s closest competitor, did not report its AUV in its franchise disclosure document. Circana estimated Subway had a unit volume of about $500,000 — the lowest AUV of any of the top 50 restaurant brands measured in the study.
These strong unit economics, and the investment backing from Blackstone, could position Jersey Mike’s to take advantage of the long decline of Subway’s fortunes and help it weather macroeconomic headwinds related to consumer confidence.
Morrison said his priorities as CEO would include “continuing to accelerate growth across new and existing markets and identifying opportunities to invest in additional technological advancements and innovation.”
The sub brand has been toying with new tech trends. In early 2024, Jersey Mike’s and SoundHound announced a 50-plus store pilot of the tech firm’s automated phone ordering tech, which was framed as a way to free up workers to focus on food and customers.
In the decade he led Wingstop, Morrison quadrupled that brand’s unit count and doubled its AUV, while Salad and Go experienced significant growth during his tenure as well, according to the press release.
But comparatively high interest rates may make it harder for franchisees to finance expansion. Tariffs are likely to drive up the cost of food, furniture and construction materials. Because of this,success for restaurants in 2025 may look more like stability than leapfrogging growth
