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.

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