Jimmy John’s is set to make its debut in El Salvador and later Guatemala, Peru and Ecuador as the delivery-focused sandwich chain embarks on its first international growth push.
Franquicias Internacionales, also a Papa Johns franchisee in El Salvador and with a portfolio spanning food and beverage, digital media and logistics, will develop Jimmy John’s in Latin America as part of a new franchise agreement announced January 17 by Inspire Brands. Also the owner of Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’ and Sonic, Inspire’s restaurant brands have more than 9,900 locations outside the United States, the largest being Baskin-Robbins with more than 5,300 international units. Sonic is the company’s only brand without any international stores.
Rodrigo Novoa, president of Franquicias Internacionales, called Jimmy John’s a “distinguished brand,” and said the El Salvador-based company is proud to be the first international franchisee to add it to its portfolio. Consumers in Latin America, he continued, will love the convenience of Jimmy John’s and its use of premium meats and freshly baked bread.
Michael Haley is president and managing director of international at Inspire Brands.
Expansion in Canada is also on tap for Jimmy John’s as the brand signed an agreement with Foodtastic. The Quebec-based franchisor also owns Pita Pit, Second Cup, Bacaro, Tommy Café and several other franchises, and in late 2022 it acquired bowl, smoothie and wrap concept Freshii. It now oversees more than 1,100 restaurants doing $1.1 billion in sales.
The first Canadian Jimmy John’s locations are expected to open this year in the Toronto area. Inspire Brands didn’t disclose the total number of units being developed as part of the agreements in Canada or Latin America, but Michael Haley, the company’s president and managing director of international, indicated more global expansion is on the way.
“In a global restaurant environment where simplicity is paramount, we’re confident this brand is primed for extensive international growth,” Haley said in a statement.
Inspire Brands, based in Sandy Springs, Georgia, and owned by Roark Capital, bought Jimmy John’s from Roark in October 2020, when it had about 2,700 units and $1.9 billion in systemwide sales. While its unit count has dipped slightly—it finished 2022 with 2,638 stores—total system sales hit $2.4 billion that year, and the brand ranked No. 42 on the Franchise Times Top 400. It’s average unit volume for franchised restaurants was $907,848 in 2022.
Large Canadian operator adds Jersey Mike’s
Jersey Mike’s is taking its freshly sliced and grilled sub sandwiches to Canada through an area director deal with the country’s largest Burger King franchisee.
Toronto-based Redberry Restaurants acquired the only Jersey Mike’s stores in Canada and signed an area director deal with the sub sandwich brand to open another 300 units across the country by 2034.
Ken Otto, CEO of Redberry, said the company plans to build about 100 of its own Jersey Mike’s locations, starting in Ontario, before bringing on sub-franchisees to further grow the brand. Redberry, backed by Chicago private equity firm City Capital Ventures, is the largest Burger King franchisee in Canada, with 156 restaurants. It also operates 24 Taco Bells.
Jersey Mike’s is an attractive addition to the company’s portfolio as a best-in-class brand, said Otto, as he noted the Manasquan, New Jersey-based concept is in “a category on its own.” The focus on fresh-sliced and fresh-grilled subs will stand out among other large sandwich players in Canada, he said.
Redberry Restaurants CEO Ken Otto
Toronto-born Mr. Sub, owned by MTY Food Group, has hundreds of locations in Canada. Subway has about 3,000 units in the country, while Firehouse Subs has more than 60.
“Canadians are going to learn to love Mike’s Way,” said Otto, a reference to the sprinkling of vinegar, oil and spices on Jersey Mike’s subs. He also emphasized the cultural alignment between the two companies, with Redberry being a top fundraiser for the Burger King Foundation and planning to embrace efforts such as the Jersey Mike’s Day of Giving.
Jersey Mike’s has had a presence in Canada for about five years, Otto said, and the two stores Redberry acquired, in Kitchener and London, Ontario, are turning in strong sales.
“They’re busy. It was a big part of what attracted us to the brand, to see two stores performing so well,” he said. Redberry plans to open five restaurants this year, focusing on Toronto and down to Windsor, and it will remodel the two existing stores to reflect the new Jersey Mike’s image.
The agreement marks the first major international expansion for Jersey Mike’s in its 68-year history. Ranked No. 39 on the Franchise Times Top 400, it has more than 3,000 locations in the U.S. and its AUV for franchise restaurants hit $1.2 million in 2022, up from $923,710 in 2020. It counts Danny DeVito as its first celebrity endorser.