Franchising with the Stars: Danny DeVito and Jersey Mike’s

Celebrity and franchising is a time-honored combination going all the way back to the days of the McJordan. But over recent years, it seems these star-powered partnerships have been popping up more than ever — Papa John’s and Shaq, Popeyes and Megan Thee Stallion, McDonald’s and Travis Scott. Recently, a new partnership entered the ring, this time representing the beautiful Garden State. Jersey Mike’s and Danny DeVito. The two have teamed up for the sandwich brand’s first-ever celebrity endorsement with an ad campaign titled “It's a Jersey Thing.”

“Two of the best things to ever come out of Jersey, finally together,” DeVito said on Twitter. “Jersey Mike’s Subs and Me!"
 

So, why is this becoming such a huge trend in the QSR space specifically, and how does it impact franchise owners? 1851 spoke with Rich Hope, CMO of Jersey Mike’s, to learn more about the thought process behind the endorsement, the importance of balancing operations with marketing and more. 

A Sub Sandwich Giant

The main thing that sets Jersey Mike’s apart, Hope says, is the culture. “We have tremendous franchisees and buy-in from those franchisees,” he said. “We have a lofty brand promise, but I often tell franchisees that we can make the promise, but it is the people at the store level that really keep that promise.”

Whatever Jersey Mike’s is doing, it’s working. The 2,000-plus-unit franchise did $2.2 billion in systemwide sales in 2021 and opened 250 units last year. It is on track to open 300 this year, followed by the same next year. The concept also landed all the way up at No. 4 on this year’s Franchise 500, up three spots from last year. 

“85% of our growth is fueled from within, with existing franchisees who are continuing to expand and open new stores,” said Hope. “That has been the majority of our growth for the last 10 years. Franchisees are very happy right now and are excited about the brand.”

Marketing, Hope says, plays a big part in that. “Our marketing approach has always been about adding a lot of layers — we tell franchisees that there is a lot going on behind the scenes that drives people into the stores,” he said. “First-party and third-party database marketing has become a huge part of our business, for example, as has social media. I’ve never believed there is a silver bullet in marketing — it is about persistence and consistency over time.”

Balancing Celeb Endorsements with a Proven Business Model

Now, Jersey Mike’s is adding another layer of marketing with its first-ever celebrity spokesperson. The 77-year-old DeVito has an impressively long-lasting and fruitful career in Hollywood that includes playing a surly New York City taxi dispatcher in “Taxi” to taking on the villainous role of The Penguin in “Batman Returns” to portraying the infamous Frank Reynolds in FX’s “It’s Always Sunny in Philadelphia”.

Image courtesy of Jersey Mike’s

“We really weren’t interested in working with celebrities at the start, but Danny was just so perfect for the brand,” said Hope. “He is a Jersey guy and grew up about 10 miles from the original store in Asbury Park. He is a well-known character for several generations. When you have an 88-year-old mother-in-law and an 18-year-old son both tell you they love Danny DeVito, that's a good sign. You don’t get that often. The results have already been tremendous.”

Mark Gross, co-founder and chief creative officer of Highdive, the marketing agency behind the ad campaign, said in a statement, “Being from Jersey and growing up with Jersey Mike’s, I had an instant personal connection with the team, product, and story behind it all. With this first campaign, we’ve really been able to bring to life the authenticity that makes Jersey Mike’s special. The chance to work with a legend like Danny DeVito makes it all that much better.”

When it comes to the power of celebrity partnerships in the marketing space and franchising, Hope says they are certainly tried and true, but they also require a careful balance.

“They get people’s attention, sure, but I like to say that while the ads feature Danny Devito, the true star of the show is still the product,” said Hope. “It isn’t just that we have a celebrity endorsement, but we are talking about the unique things that separate us from our partners. That is what the ads focus on. Having a celebrity is good, and it gets you noticed, but it can’t be misused. I believe operations are the true key. All the marketing in the world can’t help if you don’t have that in place at the unit level.”

Data, Data and More Data

Marketing and operations can intersect in many ways, Hope says. For example, leveraging the data found by loyalty programs to increase sales. “We were pretty early adopters of an electronic rewards program before most restaurant chains had it,” said Hope. “We were quick to sign people up, and now about 40% of our weekly sales come through the loyalty program. It is great for franchisees because we can do special loyalty promotions and bring in more people to the restaurants.”

For other franchisors who are intimidated by data, analytics and creating insight, Hope says the key is choosing the right third-party partners who will help guide the ads to the right audience. “The amount of data can be overwhelming, but like anything else, it is about chipping away a little at a time,” he said. “Set reasonable goals and try to accomplish them with data.”

Whether it be celebrity endorsements or data-driven loyalty promotions, franchisors have more marketing tools than ever at their disposal, but keeping the franchisee top-of-mind is essential for ensuring success starts at the unit level.