U.S. Sub Companies Jimmy John’s and Jersey Mike’s Announce Plans for Expansion into Canada

A battle of the sandwich brands is materializing as two U.S. sub companies, Jimmy John’s and Jersey Mike’s, announce their plans to expand into the Canadian market. Inspire Brands, the parent company of Jimmy John’s, revealed its intention to use a franchise model to open its first location in the Greater Toronto Area, with more to follow across the country. Meanwhile, Redberry Restaurants, the owner of Mr. Sub along with over 180 Burger King and Taco Bell locations, plans to open more than 300 Canadian restaurants by 2034.

These companies offer customizable submarine-style sandwiches, often served with sides such as chips and cookies. While Jimmy John’s also offers wraps and unwiches – sandwiches without buns, using lettuce instead – Jersey Mike’s specializes in Northeast-style subs featuring fresh-sliced meat, commonly topped with their signature blend of red wine vinegar and olive oil, known as “the juice”.

This expansion will bring these two American brands into a competitive market alongside established Canadian and foreign sandwich chains. Subway and Mr. Sub, both popular chains in Canada, will likely be close rivals. Firehouse Subs and Tim Hortons, which share a parent company with Popeyes Louisiana Kitchen and Burger King, are also significant players in the fast food sandwich market. Additionally, Starbucks and Pret A Manger, known for their focus on artisanal ingredients, have been expanding their presence in the Canadian market.

Joanne McNeish, an associate professor at Toronto Metropolitan University specializing in marketing, emphasizes that appealing to the diverse Canadian population and understanding their preferences will be crucial for these brands to succeed. McNeish notes that American brands often assume Canadians have similar tastes, but she points out that Canadian sensibilities differ, including a preference for smaller portion sizes.

McNeish suggests that Jimmy John’s and Jersey Mike’s will need to invest heavily in building brand awareness to compete with well-established competitors who may fight back with discounts, loyalty programs, and coupons. However, Lisa Hutcheson, a retail analyst at J.C. Williams Group, highlights that Subway already enjoys “huge” brand loyalty in Canada, making it difficult for new entrants to differentiate themselves.

Despite these challenges, Jersey Mike’s CEO, Peter Cancro, remains confident and believes they offer a unique proposition compared to other fast-food chains. While Jimmy John’s has not revealed its specific expansion plans, Michael Haley, president and managing director of international for Inspire Brands, suggests that the potential for growth in Canada is significant considering their success in the U.S. market.

Inspire Brands has chosen Canadian franchisor Foodtastic Inc. to launch Jimmy John’s in Canada. Foodtastic Inc. already operates over 1,100 restaurants across various brands, including Milestones, Freshii, and Quesada. Haley emphasized the importance of maintaining the authenticity of the Jimmy John’s experience while also making necessary adjustments to resonate with Canadian consumers.

With the entrance of Jimmy John’s and Jersey Mike’s into the Canadian market, the battle for dining out dollars in the sandwich industry is set to intensify, providing consumers with more options and increasing competition among the existing players.