Monday, January 04, 2021
The commercials for Jersey Mike's Subs are interesting. They don't seem to be selling sandwiches, they seem to be selling Jersey Mike's Subs franchises. The ads are ubiquitous during NFL games, which isn't an inexpensive ad buy, and I wonder about franchise operations as an investment generally. On my drive home from NC last month I had a Jersey Mike's sandwich- the ads were enough about sandwiches that my curiosity was piqued. It was pretty good. The bread was fresh, and there was a refreshing jolt of red wine vinegar and oregano. The meats are all Jersey Mike's branded, and according to this Forbes article they are sourced from Sysco Foods, which is a good indication of national consistency with regard to product. Interestingly the franchisor is not particularly transparent with respect to its franchise disclosure document, which does not include Item 19 disclosure. That said, the franchise fee and other requirements are not eye-popping. I'd be curious about how the company carves out geographical exclusivity- in the end the fast food business is as much about location as anything else. Based on it's current advertising the franchisor obviously is planning on expanding, and I'd be inclined to think that the sandwich shop sector would be pretty competitive generally, and especially so with more people working from home.
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