Champaign-Based Jimmy John’s To Be Bought By Arby’s Parent Company

ATLANTA (AP) — The parent company of Arby's is buying Champaign-based Jimmy John's Sandwiches, hoping to reverse sluggish sales at the chain that was founded in central Illinois.

Atlanta-based Inspire Brands said Wednesday the acquisition will make it the fourth-largest restaurant company in the U.S., with annual sales of $14 billion and 11,200 restaurants worldwide. Inspire also owns Sonic, Buffalo Wild Wings and Rusty Taco.

Jimmy John's founder and chairman, Jimmy John Liautaud, will step down and become an adviser to Inspire's board. James North, Jimmy John's president and CEO, will serve as president and report to Inspire CEO Paul Brown.

Jimmy John's corporate operations will remain in Champaign "for the time being", said Inspire spokesperson Chris Fuller in an email. "We are committed to communicating as openly and quickly as possible as decisions are made."

Liautaud launched Jimmy John's Sandwiches in 1983 with a single store in Charleston, Illinois. The company made fast service and delivery hallmarks of its brand.

Like Papa John's founder John Schnatter, who was forced out as chairman in 2018 because of racist comments, Liautaud's public profile has sometimes been a liability for Jimmy John's in recent years. Actor Mark Hammill is among those who have called for a boycott of Jimmy John's on Twitter after social media photos showed Liautaud posing with an elephant and a leopard he had killed on hunting trips.

Jimmy John's sales totaled $2.15 billion in 2018. That was flat from 2017 and up 1% from 2016 even though Jimmy John's added 156 stores in that period, according to Technomic, a restaurant data firm. Jimmy John's has 2,800 U.S. locations in 43 states and 84,000 employees. The chain was founded in 1983 with a single store in Charleston, Illinois.

Inspire said it can help Jimmy John's with product development, marketing and stronger purchasing scale. The company said Jimmy John's also has a lot of potential for international expansion.

"We're more interested in growing the brand and supporting the Jimmy John's system than we are in the past, personal hobbies of any single individual," Inspire said in an email when asked about Liautaud.

Roark Capital Group, the private equity firm that owns Inspire Brands, purchased a majority stake in Jimmy John's in 2016. Roark also has investments in several other restaurant chains, such as CKE Restaurants (including Hardee's), Culver's, FOCUS Brands (Auntie Annie's Pretzels, Jamba Juice, McAlister's Deli and Moe's Southwest Grill) and Wingstop. Roark also invests in other consumer product and service businesses, as well as business services.

The deal between Inspire Brands and Jimmy John's  is expected to be completed by the end of October. Terms weren't disclosed.

UPDATE: This article was revised to include comments from an Inspire Brands spokesman about the future of Jimmy John's corporate operations and more details about Roark Capitol Group. - JM  9/25/19 5:25 PM