re: Jersey Mikes is about to be Red Lobstered.

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Private equity buying into JM’s and going to do typical private equity things and ruin a perfectly good business.

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Thank you.

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I'll eat a Jersey Mike's sandwich. I will not eat at Subway.

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Like both but Jersey Mikes is overpriced.

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I get the general idea of what he’s saying but the real estate aspect makes no sense. Red Lobster had prime space on retail corridors with free standing pad sites. Jersey Mikes will have a franchisee with a relatively short term lease in a strip mall and little square footage. There is no real estate play here.

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I thought of this too.

But they (venture capitalists) are going to apply the Quiznos model to Jersey Mike's rather than the Red Lobster model (which he does mention in the video). I think he used the Red Lobster reference, while similar from a venture capitalists perspective, just because it is a recent story.

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Jersey Mike's is only slightly above subway tier

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Jersey Mikes is WAYYYY better than Subway. Across the board.

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On topic, the PE vultures are infiltrating and ruining every single sector of society and turning the world into a complete sterile hellscape.

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That's why I mentioned in the OP that this is a long term opportunity for local mom and pops.

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nolanola

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Any time PE gets involved with a business the following is GUARANTEED to happen in rapid order:

1. mass layoffs -- cost cutting is all these vultures know as they don't actually know how to run a business, only how to extract every ounce of money out of said business.

2. cut all investment into the product or service -- again these vultures have no actual ability to create a product or run a business.

3. sell off all real estate to their buddies and load the business up with debt and insane long-term leases that will take all cash flow out of the business and eventually kill it

4. have business file bankruptcy and extract the last little bit of cash and assets out of the business and lay off all the employees that are left in the process.

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Any time PE gets involved with a business the following is GUARANTEED to happen in rapid order:

1. mass layoffs -- cost cutting is all these vultures know as they don't actually know how to run a business, only how to extract every ounce of money out of said business.

2. cut all investment into the product or service -- again these vultures have no actual ability to create a product or run a business.

3. sell off all real estate to their buddies and load the business up with debt and insane long-term leases that will take all cash flow out of the business and eventually kill it

4. have business file bankruptcy and extract the last little bit of cash and assets out of the business and lay off all the employees that are left in the process.

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Nice summary.

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Now he is correct that they could possibly lease back equipment and increase supply chain costs.

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That is what Quiznos did. Franchises could ONLY buy equipment and supplies from the supply company that the parent company owned, and they kept jacking up the prices.

All the national chain sandwich places are gross. Jersey Mikes, Firehouse, Subway, whatever, they're processed meat roll garbage. The Jersey Mike's commercial where they brag about 'slicing the meat right in front of you!!!!!' is so fricking dumb. Oh, well that's quality right there, they're slicing that processed meat roll right in front of me!!!!!

ETA: all the fatties downvoting.