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Jimmy John's is an American sandwich chain headquartered in
Champaign, Illinois Champaign ( ) is a city in Champaign County, Illinois, United States. The population was 88,302 at the 2020 census. It is the tenth-most populous municipality in Illinois and the fourth most populous city in Illinois outside the Chicago metrop ...
. The business was founded by Jimmy John Liautaud in 1983. After Liautaud graduated from high school, his father gave him a choice to either join the military or start a business. Liautaud, choosing the latter, initially decided to start a
hot dog A hot dog (uncommonly spelled hotdog) is a food consisting of a grilled or steamed sausage served in the slit of a partially sliced bun. The term hot dog can refer to the sausage itself. The sausage used is a wiener ( Vienna sausage) or a f ...
business, but changed to opening a sandwich business due to costs. The Jimmy John's franchise has over 2700 locations, with 98% of them being franchises. in 2016,
Roark Capital Group Roark Capital Group is an American private equity firm with over $33 billion in assets under management. The firm is focused on leveraged buyout investments in middle-market companies, primarily in the franchise/multi-location, restaurant and ...
purchased a majority stake in the company. Later, in 2019,
Inspire Brands Inspire Brands, Inc. is an American holding company and the owner and franchisor of the Arby's, Buffalo Wild Wings, Sonic Drive-In, Jimmy John's, Rusty Taco, Mister Donut, Dunkin' Donuts and Baskin-Robbins restaurant chains. Inspire operat ...
purchased the company from Roark Capital Group for an unspecified amount.


History

After Jimmy John Liautaud graduated second to last in his class at Elgin Academy in 1982, his father gave him a choice to either join the
Army An army (from Old French ''armee'', itself derived from the Latin verb ''armāre'', meaning "to arm", and related to the Latin noun ''arma'', meaning "arms" or "weapons"), ground force or land force is a fighting force that fights primarily on ...
or start a business. Although his father wanted him to enlist, the younger Liautaud chose the latter, and his father agreed to loan him $25,000 in exchange for a 48% stake in the business. Initially Jimmy John wanted to open a hot dog stand, but after visiting numerous such stands throughout the summer of 1982, he realized the $25,000 would not be enough for such a venture. After a chance encounter at a sandwich shop, Jimmy John realized that he could open a sandwich shop within his available budget by purchasing premium meats at a neighborhood market and baking his own bread. With the help of his family as tasters, he decided to put four sandwiches on his original menu. Paying $200 a month in rent, Liautaud could only afford used equipment consisting of a refrigerator, a chest freezer, an oven, and a meat slicer. On January 13, 1983, Jimmy John's Gourmet Sandwiches opened in
Charleston, Illinois Charleston is a city in, and the county seat of, Coles County, Illinois, United States. The population was 17,286, as of the 2020 census. The city is home to Eastern Illinois University and has close ties with its neighbor, Mattoon. Both are ...
. Due to the poor location of his first store, Liautaud decided to include delivery of his sandwiches to boost sales. He began by bringing samples door-to-door to the
dorm A dormitory (originated from the Latin word ''dormitorium'', often abbreviated to dorm) is a building primarily providing sleeping and residential quarters for large numbers of people such as boarding school, high school, college or university s ...
s of nearby
Eastern Illinois University Eastern Illinois University is a public university in Charleston, Illinois. Established in 1895 as the Eastern Illinois State Normal School, a teacher's college offering a two-year degree, Eastern Illinois University gradually expanded into a co ...
, which he had attended for one semester. By the end of his first year, the restaurant started making a profit. In April 1985, Liautaud bought out his father's interest in the business, becoming the sole owner. In 1986, he opened his second store in
Macomb, Illinois Macomb is a city in and the county seat of McDonough County, Illinois, United States. It is situated in western Illinois, southwest of Galesburg. The city is about southwest of Peoria and south of the Quad Cities. A special census held in ...
, and in 1987, he opened a third in
Champaign, Illinois Champaign ( ) is a city in Champaign County, Illinois, United States. The population was 88,302 at the 2020 census. It is the tenth-most populous municipality in Illinois and the fourth most populous city in Illinois outside the Chicago metrop ...
. The business continued to grow, and he was able to open his second and third shops in 1986 and 1987. In 1988, Liautaud met Jamie Coulter, who at that time was a
Pizza Hut Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958 in Wichita, Kansas by Dan and Frank Carney. They serve their signature pan pizza and other dishes including pasta, breadsticks and desse ...
Franchisee and would later become the CEO of
Lone Star Steakhouse & Saloon Lone Star Steakhouse & Saloon was an American casual dining restaurant chain with a single independently owned and operated franchise still in business in 2021 on the island of Guam. The chain served steak, seafood, salad, and similar food ite ...
. Coulter mentored Liautaud and "taught imhow to effectively run multiple units." Liautaud continued opening more stores and developed a prototype before beginning franchising in 1994. In 1994, he sold his first Jimmy John's franchise, in addition to the 10 stores owned by Liautaud himself. The first franchise store opened in
Eau Claire, Wisconsin Eau Claire (; ) (French for "clear water") is a city mostly located in Eau Claire County, Wisconsin, of which it is the county seat, and with a small portion in Chippewa County, Wisconsin. It had a population of 69,421 in 2020, making it the stat ...
. In 2001, the hundredth Jimmy John's store opened in
Mt. Pleasant, Michigan Mount Pleasant is a city in the U.S. state of Michigan. Located in Central Michigan, the city is the county seat of Isabella County, Michigan, Isabella County. The population was 21,688 as of the 2020 United States census. It is surrounded by Unio ...
. By 2002, the company had about 200 stores, 10% of which were corporate stores that Liautaud oversaw himself. However, Liautaud noticed that sales at the stores he owned were outpacing the franchised stores by a wide margin. Liautaud stopped selling franchises for one year to give support to stores that were struggling. Together with his partner, and now president & CEO, James North, he visited 70 of the poorest-performing stores. After 18 months of getting the stores “back to basics” and instilling in them “some of that initial spark”, he was able to help the stores become more profitable. In 2007, the 500th store opened in
Seattle, Washington Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest region ...
, and in 2010, the 1,000th opened in
Beaverton, Oregon Beaverton is a city in Washington County, in the U.S. state of Oregon with a small portion bordering Portland in the Tualatin Valley. The city is among the main cities that make up the Portland metropolitan area. Its population was 97,494 at ...
. As of March 2017, Jimmy John's had almost 3,000 stores with plans for expansion up to 5,000 more. Liautaud realized that, in order to grow, he would need help acquiring better locations for his stores. Since he had little expertise in real estate, he decided to take on a partner who did. In January 2007, Liautaud sold a 33% stake to
Weston Presidio Weston Presidio is an American private equity firm focused on growth capital investments in late-stage companies across a range of industries with a specific focus on the consumer products, business services, industrial, media, publishing, healt ...
, a
San Francisco San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17t ...
–based private-equity firm. In the first year after partnering with Weston Presidio, 100 real estate deals were closed. The company has completed two recapitalizations since Weston Presidio's investment. In the summer of 2015, pictures of Liautaud posing with big
game A game is a structured form of play, usually undertaken for entertainment or fun, and sometimes used as an educational tool. Many games are also considered to be work (such as professional players of spectator sports or games) or art (suc ...
circulated on social media, leading to increased calls to boycott his restaurants. In a 2015 interview with the ''
Chicago Tribune The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television ar ...
'', Liautaud said, "I don't hunt big African game anymore." In September 2016, Jimmy John's announced that
Roark Capital Group Roark Capital Group is an American private equity firm with over $33 billion in assets under management. The firm is focused on leveraged buyout investments in middle-market companies, primarily in the franchise/multi-location, restaurant and ...
had agreed to acquire a majority stake in the company. Terms of the transaction were not immediately disclosed, though it was later clarified that Liautaud retained 35% ownership of the company as part of the deal. As part of the agreement, Liautaud would continue as chairman of the board. On September 25, 2019,
Inspire Brands Inspire Brands, Inc. is an American holding company and the owner and franchisor of the Arby's, Buffalo Wild Wings, Sonic Drive-In, Jimmy John's, Rusty Taco, Mister Donut, Dunkin' Donuts and Baskin-Robbins restaurant chains. Inspire operat ...
(affiliated with Roark Capital Group) announced that it was buying Jimmy John's for an unspecified amount in a deal unanimously approved by Liautaud and the rest of the Jimmy John's board of directors. At the close of the deal, Liautaud would step down as chairman of the company and transition to become an adviser to the brand. The acquisition was completed on October 18.


Labor relations

In 2010, when the
Industrial Workers of the World The Industrial Workers of the World (IWW), members of which are commonly termed "Wobblies", is an international labor union that was founded in Chicago in 1905. The origin of the nickname "Wobblies" is uncertain. IWW ideology combines general ...
attempted to unionize ten Minneapolis locations, ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'' called the effort "one of the few efforts to organize fast-food workers in American history." In July 2017, the
United States Court of Appeals for the Eighth Circuit The United States Court of Appeals for the Eighth Circuit (in case citations, 8th Cir.) is a United States federal court with appellate jurisdiction over the following United States district courts: * Eastern District of Arkansas * Western Dist ...
found that the
National Labor Relations Act The National Labor Relations Act of 1935, also known as the Wagner Act, is a foundational statute of United States labor law that guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, and ...
did not protect Jimmy John's employees from being fired for exhibiting legally disloyal conduct by attacking the company's product to oppose a franchisee's sick leave policy. In October 2014, it was revealed that employees at Jimmy John's, including sandwich makers and delivery drivers, were required to sign non-compete agreements as a condition of employment. The agreement restricted the employee from working for a competitor for two years, where a competitor was defined as a business that derives more than ten percent of its revenue from selling sandwiches and is located within three miles of any Jimmy John's. Additionally, the employee could not work for another Jimmy John's franchisee for a year. Jimmy John's has since settled related lawsuits filed by the Attorneys General of New York and Illinois. In statements, the company clarified that it had taken steps to remove non-compete agreements from their new hire paperwork long before they were contacted by the Attorneys General, and that "enforcement of non-compete agreements against our own hourly store employees is not a part of Jimmy John's culture or business model."


Menu

Jimmy John's has three bread options: French, thick-sliced Wheat, and the six-inch "Lil' John" (smaller version of French bread), as well as a lettuce wrap option known as the Unwich. Jimmy John's has 17 different numbered sandwiches plus a B.L.T., called the J.J.B.L.T, and the Gargantuan, a combination of all the meats. The 17 sandwiches may have ham, roast beef, tuna, turkey, salami, capicola, bacon, or provolone cheese or combine two or more meats and cheese. Jimmy John's has five flavors of chips, including Regular, BBQ, Jalapeño, Salt and Vinegar, and Thinny (low-fat version of the Regular). The menu also includes kosher dill pickles as well as "triple chunk" chocolate and oatmeal raisin cookies.


Awards and recognition

Jimmy John's was named #1 on the Entrepreneur 2016 Franchise 500. In 2014, YouGov BrandIndex ranked restaurant chains that have the highest millennial brand loyalty, and Jimmy John's topped the ranking with 83% of the vote based on restaurants they would consider going to again. Jimmy John's was named the #2 Most Popular Restaurant for Business Meals by expense reporting program Certify. In 2015, Entrepreneur.com named Jimmy John's one of the 10 Promising Franchises for Ambitious Entrepreneurs. In March 2017, Jimmy John's won Franchise Times' "Deal of the Year" for attracting
Roark Capital Group Roark Capital Group is an American private equity firm with over $33 billion in assets under management. The firm is focused on leveraged buyout investments in middle-market companies, primarily in the franchise/multi-location, restaurant and ...
as the company's new majority owner. FT's judges called the deal "one of the best private equity deals of all time in the restaurant business."
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listed Jimmy John's as one of ten "Great Franchise Bets". The company estimates that annual sales can be as high as $1.2 million while net profits can average at about $280,000. Real estate start-up costs are estimated to be between $305,000 and $485,500.


Philanthropy

In September 2014, Jimmy John's donated $1 million to the Folds of Honor Foundation, a foundation that supports the families of killed or disabled soldiers. During the 2015 school year, Jimmy John's donated more than 100 laptop computers to the Champaign Unit 4 School District. Jimmy John's donated $125,000 to the Champaign Parks Foundation to support the Youth Scholarship Program in November 2016. In June 2017, Jimmy John's donated $100,000 to EAT (RED) SAVE LIVES to offer HIV/AIDS medication in sub-Saharan Africa. In December 2018, Jimmy John's donated $80,000 to pay off all Christmas layaways at Walmart in
Champaign Champaign ( ) is a city in Champaign County, Illinois, United States. The population was 88,302 at the 2020 census. It is the tenth-most populous municipality in Illinois and the fourth most populous city in Illinois outside the Chicago metropo ...
,
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, and
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.


Sponsorships

Starting in 2007, Jimmy John's began sponsoring NASCAR, first with Steven Wallace in 2007 and 2008. In 2009 and 2010, Jimmy John's sponsored
Kevin Harvick Kevin Michael Harvick (born December 8, 1975) is an American professional stock car racing driver. He competes full-time in the NASCAR Cup Series, driving the No. 4 Ford Mustang for Stewart-Haas Racing. Harvick is the 2014 Cup Series champion, ...
in the
NASCAR The National Association for Stock Car Auto Racing, LLC (NASCAR) is an American auto racing sanctioning and operating company that is best known for stock car racing. The privately owned company was founded by Bill France Sr. in 1948, and ...
Nationwide Series The NASCAR Xfinity Series (NXS) is a stock car racing series organized by NASCAR. It is promoted as NASCAR's second-tier circuit to the organization's top level Cup Series. NXS events are frequently held as a support race on the day prior to a ...
. In 2011, Jimmy John's and
Richard Childress Racing Richard Childress Racing (RCR) is an American professional stock car racing team that currently competes in the NASCAR Cup Series and the NASCAR Xfinity Series. The team is based in Welcome, North Carolina, and is owned and operated by Richard Ch ...
reached a multi-year agreement to sponsor Harvick for the
Sprint Cup Series The NASCAR Cup Series is the top racing series of the NASCAR, National Association for Stock Car Auto Racing (NASCAR). The series began in 1949 as the Strictly Stock Division, and from 1950 to 1970 it was known as the Grand National Division. ...
. The 2014 sponsorship continued with Harvick and the
Stewart-Haas Racing Stewart-Haas Racing is an American professional stock car racing team that currently competes in the NASCAR Cup Series, the NASCAR Xfinity Series, and eNASCAR Coca-Cola iRacing Series. The team is co-owned by three-time NASCAR Cup Series champio ...
team. On September 13, 2014, Jimmy John's became the title sponsor of the Jimmy John's Freaky Fast 300 at
Chicagoland Speedway Chicagoland Speedway is a tri-oval speedway in Joliet, Illinois, southwest of Chicago. The speedway opened in 2001 and actively hosted NASCAR racing including the NASCAR Cup Series until 2019. Until 2010, the speedway has also hosted the IndyC ...
. Harvick won the 2014 NASCAR Sprint Cup Championship, giving Jimmy John's their first championship. From 2010 to 2019, Jimmy John's entered into an
Ultimate Fighting Championship The Ultimate Fighting Championship (UFC) is an American mixed martial arts (MMA) promotion company based in Las Vegas, Nevada. It is owned and operated by Zuffa, a wholly owned subsidiary of Endeavor Group Holdings. It is the largest MMA ...
sponsorship with
Brock Lesnar Brock Edward Lesnar ( ; born July 12, 1977) is an American-Canadian professional wrestler, former mixed martial artist (MMA), amateur wrestler, and professional American football player who holds both American and Canadian citizenship. He is ...
with logos appearing on his trunks. This sponsorship extended to WWE upon Lesnar's return to that company in 2012, making him the only WWE performer in history to be permitted such a deal. In 2015, Jimmy John's co-sponsored the RCH Factory Racing
Supercross The AMA Supercross Championship (commercially known as Monster Energy AMA Supercross) is an American motorcycle racing series. Founded by the American Motorcyclist Association (AMA) in 1974, the AMA Supercross Championship races are held from ...
and
Motocross Motocross is a form of off-road motorcycle racing held on enclosed off-road circuits. The sport evolved from motorcycle trials competitions held in the United Kingdom. History Motocross first evolved in Britain from motorcycle trials competiti ...
team featuring
Ken Roczen Ken Roczen (born 29 April 1994 in Mattstedt, Germany) is a German professional motocross and supercross racer. He competed in the Motocross World Championships from 2009 to 2011 and the AMA Supercross Championships since 2011. He is an MX2 ...
. The team contested both the Monster Energy AMA Supercross and the Lucas Oil Pro Motocross championships. In June, Jimmy John's sponsored former NASCAR champion Rusty Wallace for his Speed Energy Formula Off-Road debut at the 2015 X Games. In June 2015, it was announced that Jimmy John's purchased the naming rights to the
Utica, Michigan Utica is a city in Macomb County in the U.S. state of Michigan. The population was 4,757 at the 2010 census. History The city now known as Utica was platted by Joseph Stead in 1817, who preferred to call it "Harlow." Others referred to the cit ...
baseball stadium which is the current home of the three teams in the newly formed
United Shore Professional Baseball League The United Shore Professional Baseball League (USPBL) is an independent baseball league in suburban Metro Detroit, Michigan, United States, started in May 2016. Each team in the USPBL plays a 42-game regular season schedule from May through Septem ...
.
Jimmy John's Field Jimmy John's Field is a baseball field in Utica, Michigan, home to four teams that play in the United Shore Professional Baseball League (USPBL), an independent baseball league. It opened on May 30, 2016. Naming rights were purchased by Jimmy J ...
opened on May 30, 2016. Other Jimmy John's sponsorships include the
Boston Red Sox The Boston Red Sox are an American professional baseball team based in Boston. The Red Sox compete in Major League Baseball (MLB) as a member club of the American League (AL) East division. Founded in as one of the American League's eight ...
,
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,
Detroit Red Wings The Detroit Red Wings (colloquially referred to as the Wings) are a professional ice hockey team based in Detroit. The Red Wings compete in the National Hockey League (NHL) as a member of the Atlantic Division in the Eastern Conference, and are ...
,
Houston Astros The Houston Astros are an American professional baseball team based in Houston, Texas. The Astros compete in Major League Baseball (MLB) as a member club of the American League (AL) West division, having moved to the division in 2013 after s ...
,
Nashville Predators The Nashville Predators (commonly referred to as the Preds) are a professional ice hockey team based in Nashville, Tennessee. They compete in the National Hockey League (NHL) as a member of the Central Division in the Western Conference, and ha ...
,
St. Louis Cardinals The St. Louis Cardinals are an American professional baseball team based in St. Louis. The Cardinals compete in Major League Baseball (MLB) as a member club of the National League (NL) Central division. Since the 2006 season, the Cardinals ha ...
,
Seattle Mariners The Seattle Mariners are an American professional baseball team based in Seattle. They compete in Major League Baseball (MLB) as a member club of the American League (AL) West division. The team joined the American League as an expansion ...
, and the GoDaddy.com Bowl, among many others. Jimmy John's owners have also supported local organizations in their communities. Two such sponsored organizations include the Utah Youth Soccer Association and the Arizona Soccer Association.


FDA warning

On February 21, 2020, the U.S.
Food and Drug Administration The United States Food and Drug Administration (FDA or US FDA) is a federal agency of the Department of Health and Human Services. The FDA is responsible for protecting and promoting public health through the control and supervision of food ...
sent an
FDA warning letter An FDA warning letter is an official message from the United States Food and Drug Administration (FDA) to a manufacturer or other organization that has violated some rule in a federally regulated activity. The FDA defines an FDA warning letter as ...
to Jimmy John's detailing evidence from five outbreaks of human infections with ''
Escherichia coli ''Escherichia coli'' (),Wells, J. C. (2000) Longman Pronunciation Dictionary. Harlow ngland Pearson Education Ltd. also known as ''E. coli'' (), is a Gram-negative, facultative anaerobic, rod-shaped, coliform bacterium of the genus '' Esc ...
''. The letter said that the evidence demonstrates that the company engaged in a pattern of receiving and selling spoiled produce, specifically clover sprouts and
cucumbers Cucumber (''Cucumis sativus'') is a widely-cultivated creeping vine plant in the Cucurbitaceae family that bears usually cylindrical fruits, which are used as culinary vegetables.Iowa Department of Public Health Iowa Department of Public Health (IDPH) is a state agency of Iowa focusing on public health. It is headquartered in the Lucas State Office Building in Des Moines Des Moines () is the capital and the most populous city in the U.S. state of Io ...
reported that, as of January 2020, a total of 22 people were infected with the outbreak strain of ''E. coli''. "20 of the 22 case individuals were interviewed by the Iowa Department of Public Health," the FDA says. "Of the case individuals interviewed, 100% reported eating at one or more of 15 Jimmy John's restaurants." The FDA gave the company 15 days to respond and include specific steps it is taking to address the violations.


See also

*
List of submarine sandwich restaurants This is a list of notable submarine sandwich restaurants. A submarine sandwich, also known as a sub, wedge, hoagie, gyro, grinder, baguette, or one of many regional naming variations, is a sandwich that consists of a long roll of Italian or Fren ...


References


External links

* {{Portal bar, Food, Companies, Illinois Champaign, Illinois Companies based in Champaign County, Illinois Restaurants established in 1983 family-owned companies of the United States Fast-food chains of the United States Fast-food franchises Private equity portfolio companies Restaurant chains in the United States Submarine sandwich restaurants 1983 establishments in Illinois 2016 mergers and acquisitions 2019 mergers and acquisitions Fast casual restaurants Inspire Brands