Jersey Mike’s signs franchise agreement to open 400 sites in the UK: Jersey Mike’s, the second-largest sub-sandwich brand in the US behind Subway, has signed a franchise agreement with JM Submarines UK, led by the brand’s founder Peter Cancro, to open 400 sites in the UK and Ireland. Cancro founded Jersey Mike's, which currently operates 3,200 sites in North America, more than 50 years ago and remains a significant shareholder following the company’s sale to Blackstone in late 2024. The new agreement marks the first European expansion for the company, with plans to open the first location in the UK later this year. Charlie Morrison, chief executive at Jersey Mike’s, said: “This marks a pivotal milestone in Jersey Mike’s growth journey as we expand into the European market. We could not ask for a better partner than Peter to lead this market expansion. Peter built this brand from the ground up, from our first location on the Jersey Shore to over 3,000 locations across North America during his time as chief executive. We are thrilled to have Peter lead our first European expansion in what is a very exciting new chapter for the company.” Cancro founded Jersey Mike's Subs in 1975, when at 17 years old, he purchased the first Mike’s Subs shop in Point Pleasant, New Jersey. He was the company’s chief executive for 50 years and became its chairman last April. He said: “I’ve lived and breathed this brand my entire life, starting when I worked at the original Mike’s Subs in Point Pleasant as a teenager. To now have the opportunity to bring Jersey Mike’s to the UK and Ireland as a franchisee is incredibly exciting. I see tremendous potential in these markets, and I’m eager to personally operate the brand I love in regions that value quality and community as much as we do.” The US company said that the new strategic partnership with Cancro “underscores the brand's commitment to thoughtful, quality-driven growth as it shares Jersey Mike's authentic ‘A Sub Above’ experience with a global audience”. “I’m thrilled to partner with Peter and his team as we bring Jersey Mike's to the UK and Ireland, two markets with incredible potential that represent just the beginning of our global growth journey,” said Andy Skehan, president of International at Jersey Mike’s. “I’m confident that communities worldwide will embrace what has made Jersey Mike’s a beloved brand across North America, and we are now ready to build upon our strong operations foundation and brand recognition to take our next step toward global expansion.” Jersey Mike’s will feature in the next UK Food & Beverage Franchisor Database, which is exclusive to Premium Club subscribers. The latest edition features 380 companies. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

 

North London McDonald’s franchisee Zed1 Enterprises remains profitable ‘despite challenges’: North London McDonald’s franchisee Zed 1 Enterprises, which is led by Hamid Darbandi, has reported turnover dipped to £11,952,294 in the year to 31 March 2025 (2024: £12,249,441). Profit before tax was £278,101 compared with £392,508 the year before. Gross profit margin rose to 67.7% from 67.24% the year before. The company, whose portfolio include five sites, two of which were added since the financial year-end, stated: “Revenue decreased marginally primarily due to the temporary closure of one store for significant improvement works, which extended beyond the anticipated time. Management has implemented effective cost control measures and a new pricing strategy, contributing to the increase in gross margin.” Interim dividends of £213,749 were paid (2024: £180,549). Darbandi spent 17 years as a business manager with McDonald’s before becoming a franchisee in 2001.

 

Norfolk leisure group reports turnover fall and losses: Norfolk leisure group Blue Sky Leisure, led by the Timewell family, has reported a turnover drop and losses. The company, which operates the Woodhill Park and Kelling Heath holiday parks on the north Norfolk coast, reported turnover dropped to £11,116,843 in the year to 31 March 2025 (2024: £12,294,435). The company made a pre-tax loss of £100,172 compared with a profit before tax of £484,571 the year before. Operating profit was £43,897, down from £691,065 the year before.  The company stated: “The drop in operating profit is largely attributable to decreased home sales. In addition, 2024 benefited from a £223,459 onerous lease reversal and a £200,000 adjustment for investment property revaluation.”

 

GuestHouse Hotels reports losses as it expands: GuestHouse, the operator of hotels and spas in York, Bath, Brighton and Margate run by Tristran, James and Tom Guest, has reported turnover rose to £10,832,00 in the year to 31 March 2025 (20234: £8,199,000). Loss before tax rose to £5,329,000 from £4,601,000 the year before. The most recent site was Brighton, which opened in November 2024. The company operates a restaurant concept called Pearly Cow which trades as York, Margate and Brighton. It stated that food inflation is a concern for the group as it is currently higher than can be passed on to customers. It added: “The group is monitoring the situation and adjusting prices to remain competitive.” No dividends were paid during the year.