Two American retail sandwich chains are entering Canada: Jersey Mike's Subs and Jimmy John's.
Jersey Mike's, based in Manasquan, New Jersey, and Jimmy John's, headquartered in Atlanta, both said on Wednesday they are mounting their first major international expansions with forays to the north of their home country.
The move reflects the growth of restaurant chains into other countries on the continent and in particular the latest U.S.-based companies looking at moving into Canada.
Jersey Mike's has already expanded far beyond the Garden State, with 3,000 locations open and in development in the United States. Now it has struck an area director and development agreement with Redberry Restaurants, one of Canada's largest operators of eateries, with plans to open 300 Jersey Mike's locations across Canada by 2034.
That expansion, the first big global push in the company's 68-year history, is designed to come through a combination of Redberry-owned-and-operated sites and franchisee locations.
In turn, Jimmy John’s said it has reached international franchise agreements with two operators with quick-service restaurant experience and established locations throughout Canada and Latin America. They are Foodtastic, based in Saint-Laurent, Quebec, a franchiser of restaurant brands in Canada, with more than 1,100 restaurants and $1.1 billion in sales, and Franquicias Internacionales, based in El Salvador.
Jimmy John’s, founded in 1983, has more than 2,600 restaurants in 48 U.S. states. It is part of Inspire Brands.
For Jersey Mike's, Redberry, based in Mississauga, Ontario, will purchase the chain's two existing locations in Kitchener and London, both in Ontario, and will open five new Jersey Mike's in that province this year, Jersey Mike's said in a statement. The Kitchener and London locations will be completely remodeled early this year to reflect Jersey Mike's new image, the chain said.
Redberry owns and operates 180-plus restaurant locations across Canada under the Burger King and Taco Bell brands and now, together with Jersey Mike's, has signed agreements for more than 600 additional restaurants. The company's CEO, Ken Otto, described Jersey Mike's as an iconic brand.
"We resonated strongly with their culture, product and mission," he said in a statement.
Peter Cancro, CEO of Jersey Mike's Franchise Systems, founded the chain in 1956 with a location at the Jersey Shore. Both chains tout their practice of slicing meat on the spot for customers in their stores and baking their bread on the premises.