Jersey Mikes

Oct 1, 2020 | Report Announcements

Jersey Mike’s “Sub Above” brand positioning is based upon: freshly sliced cold subs & grilled hot subs made with quality ingredients; signature Mike’s Way sandwich topping option, including a drizzling of “The Juice”; a great customer experience built upon conversational hospitality & fast service speed; and a charitable culture of “giving to give”. Its Northeast-style cold subs are made-to-order with private labeled meats sliced in front of customers and fresh-sliced cheeses & produce piled high on bread baked in-store. Hot subs emphasize grilling of Cheesesteaks (USDA choice top round roast beef cooked in-house) and Chicken Cheesesteaks. The system’s goal is to establish each location as a local neighborhood sandwich shop which “makes a difference” and it is notable that the system seeks to resist a multi-unit mentality. The goal is to reach consumers where they are (FB, Instagram, etc.) and corporate reported that it increased its aided brand awareness by 25 points during 2019 which is key given the brand’s size disadvantage relative to Subway & Jimmy John’s. Marketing tactics have evolved from emails to texts to data mining currently and texting has been successfully tied to double point loyalty promotions. Its mobile app has order & quick pick-up functionality, pay, loyalty and Doordash delivery capabilities and it is notable that its loyalty program generates 45% of sales (yielding a key source of customer data). Heavy cause-related marketing efforts reinforces the brand’s Millennial friendly service and community (giving to give) positioning. Rapid unit growth helps build scale which is key given the chain’s limited marketing spend compared to its national chain competitors. In conclusion, it is notable that this chain has been able to sustain sales out-performance with a quality positioning during an extended operating environment marked by discounting and it is our opinion that this reflects: a compelling quality/service positioning; a brand commitment to give back to its customers & to its communities; and effective digital marketing efforts.

Marketing Consumer Research Weekly Banner
NoBull Posts Thumbnail
Restaurant Research

Email Sign-up

15 Second Posts

Latest Release for Personal Consumption Expenditures (PCE)

The consumer still looks good according to the government’s recent release of personal consumption expenditures (for August 2023) as there have not been any material changes in growth for either disposable income or consumption expenditures.

Small Biz Insights on Trucking Industry

In this post, we discuss the massive post-covid changes to the trucking business with Tony Lovallo who has been running his own freight company since 2010. Tony’s insights provide a 360 look into the shipping business & consumer patterns with important economic implications.

Darden 1Q24: Sales +11.6% Y/Y, Comps +5.5% Y/Y

Darden reported that industry same-restaurant sales increased +0.9% and industry same-restaurant guest counts decreased -4.2% during its fiscal 1Q24. The chain’s comps outperformed the industry by +4.1% and its traffic outperformed by +4.3% (= flattish traffic for Darden during the quarter).

Job Market Looks Solid

In this chart, we subtract total quits from total hires. The excess of hires over quits looks very good relative to the historical level even though the positive gap recently dipped slightly. Workers are staying at their jobs longer even as they continue to have new employment opportunities.

The Economics of Politics

As the U.S. gears up for the 2024 elections, it is important to consider changes to our elections and governance that can unite the citizens of this great country.

2Q23 Retail Same Store Sales

NoBull’s Retail Same Store Sales Report benchmarks 80+ large consumer retail companies by domestic same store sales including annual (2019 – 2022) and quarterly results (2Q22 to 2Q23).

Walmart Investor Presentation: Inflation Here to Stay

While general merchandise prices are lower y/y, they remain elevated compared to 2 years ago. As Walmart does not believe general merchandise and food (dry grocery) & consumable prices are ever going to completely disinflate, management suggests the need for a country-wide wage increase rebalancing.

Interesting Conversation with Fed Chair Powell

Okay, Powell didn’t actually take our call, but we offer a transcript of a potential discussion between the Fed Chair and John Q. Public. It’s very insightful, so please read on.

The Problem with Investment Diversification

Every investment advisor and business student knows that portfolio diversification is key to wealth building. Show me an investor who can beat the S&P 500 Index by buying a few handpicked stocks and I will show you a hedge fund manager in the making. However, there is a huge problem with this strategy that no one is talking about.

Part 3: Analyzing Performance of Low-Income Oriented Retail Companies

We created an index for the financial performance of 5 low-income oriented retail companies to assess the health of this demo. While we recognize that these companies have benefited from the trade-down of higher-income consumers, things look reasonable at least through calendar 2Q23. 

Digital Marketing Opportunities
Restaurant Research

A Restaurant Research LLC Company