Sandwich Shop Jimmy John’s Changes Its Majority Ownership

Jimmy John’s first sub-shop was established in 1983 by Jimmy John Liautaud. By 1994, he owned 10 locations, each of which was earning a profit of $1 million on $4 million in revenue. That same year, he started to sell franchises. Today, there are approximately 2,800 locations.

In 2005, he decided to sell some of the company to a private equity investor. He chose Weston Presidio of Boston, Massachusetts. He netted an after-tax amount of $130 million. Jimmy John Liautaud gave $250,000 checks to his first three employees.

Read more: Jimmy John Liautaud – Wikiquote

The rest he used to buy municipal bonds and farmland in Illinois so he would have a steady stream of interest in case he ever needed to live off it.

In 2014, he says things got less fun. He was stressed out by the growth of the company and too many complicated things to manage. such as the $100 million advertising fund. He relates that he had no idea how to effectively use that much money to advertise.

He decided to step down as the head of Jimmy John’s and made his employee James North the company’s first chief executive officer. He is now the chairman and manages the food and culture.

Around that same year, Weston Presidio decided they wanted to sell their stake in the company. At first, he thought about making Jimmy John’s into a publicly-traded company.

This wasn’t appealing, though, because then his company would have to serve Wall Street. He decided to instead find a private equity firm that wanted to own a majority of his sub chain.

Jimmy John Liautaud vetted several large private equity firms. The one that stood out to him was Roark Capital of Atlanta, Georgia. The founder of this company, Neal Aronson, had talked to him about his family rather than just numbers. He invited Aronson to his farmhouse outside of Champaign, Illinois. They got along great as did their wives. That sealed the deal for who he would sell a majority stake to.

In October 2014, Roark Capital bought all of Weston Presidio’s shares. They also bought over half of Liautaud’s stake, leaving him with 35% ownership of Jimmy John’s. The deal resulted in 14 of his company’s longtime employees becoming overnight millionaires.

Same-store sales have dropped since then. The cause is thought to be that Jimmy John’s now has a lot of competition for delivery. They used to offer a unique delivery service but today many restaurants will deliver food using Postmates, Seamless, and other services.

Read: Start and Grow Your Business: Guest Speaker Jimmy John Liautaud

They are also fiercely competing with chains like Jersey Mike’s, Firehouse Subs, and Subway for sandwich sales.

To increase sales, Roark Capital has introduced data into Jersey Mike’s operations. They track location data such as foot traffic, the popularity of different menu items, and how satisfied customers are. Franchisees like the changes, which have resulted in 184 new Jimmy John’s opening in 2018 and another 737 are expected to soon open.

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Luke Lazarus: Transition to Startup Consulting

Research shows that approximately ninety percent of all new businesses collapse within the first five years after they have been launched.

However, there is a tiny group of entrepreneurs who do not seem to be affected by the hurricane forces unleashed by the marketplace.

Read: Luke Lazarus Consulting | INC

These entrepreneurs seem to know the secret to launch and growing startup after startup into a mature salable business. This group is known as serial-entrepreneurs.

Though they are a very tiny percentage of all company owners, these entrepreneurs have an incredible consistency in being successful every time they start a business hence showing that there is more going on in growing a business than just surviving.

Most people may believe that these successful entrepreneurs are just lucky. However, luck has nothing to do with them enjoying success stories every single time. It is all about having raw knowledge and skill that helps them achieve the immense success that most individuals can only dream of.

However, every once in a while these super-entrepreneurs get tired of accumulating wealth for their gain. They instead decide to help startup owners to navigate the sharp learning curve that most new business falls from.

Luke Lazarus is among the tiny minority of serial entrepreneurs. Luke launched his first business when he was eight years old, and he has been involved in the entrepreneurship sector ever since.

He was a straight-A student in high school and also excelled in numerous scholastic sports. Luke later graduated from Melbourne Business School with an MBA at only twenty-four years of age.

After graduating, Luke spent over ten years building four companies, which he later sold at huge profits. He was completely financially independent by the time he was thirty-five years old.

Lazarus then realized that money was no longer a driving factor for him, and hence did not need to continue being an entrepreneur. Luke Lazarus had seen how fulfilling it was to help other individuals achieve their life and business goals throughout his professional career, and he decided that that is exactly what he would do.

Luke started using his tremendous talents to provide solutions to other business people who were struggling with the numerous problems involved in starting and running a company.

He became a business consultant and created a unique strategy for startup consulting that emphasized on analysis, systems, and emotional connections to both the customers and stakeholders.

Luke Lazarus utilizes the experience he gained over the years to help clients’ businesses into the kinds of operations that will instantly capture the venture capitalists’ attention and help his clients close the deals. He helps startups and struggling companies to realize success even if they do not obtain venture capital.

Additional Information

Luke Lazarus was born and raised in Melbourne, Australia. He is a global marketing consultant for new companies and has a long list of successful and satisfied clients.

Lazarus maintains a structure in all areas of his life that have helped him to achieve impressive success. He has a daily workout routine that he always performs no matter what.

Further reading: Luke Lazarus | Everybody Wiki

He also carves time to interact and connect with his friends, read the paper, and walk his dog. Lazarus also participates in philanthropic activities.

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