Jersey Mike’s “Sub Above” brand positioning is based upon: authentic, freshly sliced cold subs & grilled hot subs made with quality ingredients & abundant meat portions; signature Mike’s Way sandwich topping option which features a drizzling of “The Juice” (blend of olive oil, red wine vinegar & spices); a great customer experience built upon conversational hospitality & fast service speed; and a charitable culture of “giving to give”. The chain started by the Jersey Shore and its East Coast style cold subs are sliced to order with private labeled meats while its hot subs emphasize fresh grilling of Cheesesteaks (chicken & top round roast beef cooked in-house). The goal is to establish each location as a local neighborhood sandwich shop which “makes a difference” with extensive cause marketing and community involvement campaigns that resonate well in the current environment. 40% of orders are generated digitally and corporate reports +180% digital growth from April 2020 to March 2021. Its app is linked to customers’ MyMike’s accounts while its loyalty program generates 45% of sales and represents a key source of customer data. The chain’s AUV is at an all-time high, almost doubling from 2012 to 2021P (helped by recent remodel sales bump) and its EBITDAR margin outperformance reflects low labor costs which more than offset higher food costs (a function of premium ingredients). Rapid unit growth helps build scale which is key given the chain’s limited marketing spend compared to its national chain competitors. In conclusion, Jersey Mike’s is well positioned to maintain sales outperformance by leveraging its core equities around off-premise, a compelling quality/service positioning, a brand commitment to give back to its customers as well as its communities and effective digital/loyalty marketing efforts.

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