Jimmy John's
Gourmet sandwich chain known for freaky fast delivery and fresh-baked bread.
PE-OWNED
Acquired by Bain Capital2016-09-01
What Made It Great
Fast delivery of gourmet sandwiches with premium meats and fresh bread
What PE Will Likely Do
Portion sizes of Jimmy John's sandwiches will be reduced while prices remain the same or increase
Lower quality, cheaper ingredients will be used in Jimmy John's sandwiches, such as lower grade deli meats and lower quality breads
The variety of sandwich options on the Jimmy John's menu will be reduced to focus on higher-margin items
Staffing in Jimmy John's kitchens and service counters will be cut, leading to slower service and less attentive staff
Some Jimmy John's franchise locations may be forced to close due to increased franchise fees and requirements
Expected Timeline
“0 to 6 months months”
Minor changes to Jimmy John's menu, pricing, and operations begin
“6 to 12 months months”
Noticeable reduction in sandwich portion sizes and use of lower quality ingredients become apparent
“12 to 24 months months”
Regular Jimmy John's customers start noticing significant decline in food quality and service
“24 to 36 months months”
Accelerated store closures of Jimmy John's franchises as brand reputation is damaged
“36+ months months”
Potential bankruptcy or sale of Jimmy John's to another operator
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be aware of potential changes to Jimmy John's sandwich quality and portion sizes in the coming years
Consider seeking out alternative sandwich providers that prioritize quality and consistency over cost-cutting
Voice concerns about declining Jimmy John's quality to the company and your local franchise owners
Alternatives
Publicly traded restaurant group
Support local businesses in your area