Jersey Mike's and AI: An IPO on the Edge of Absurdity

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Key Takeaways

1Jersey Mike's, famous for its sandwiches, mentions AI 22 times in its IPO documents.

2The company does not sell AI software but references AI in its warnings to investors.

3Jersey Mike's use of AI remains vague, contrasting with frequent mentions of software and data.

💡Why it matters — The hype around AI is prompting unexpected sectors to reference it to attract investors, even without a direct connection.

Jersey Mike's and AI: An IPO That Borders on Absurdity

The enthusiasm for new technologies often follows a well-known cycle: first excitement, then hype, and finally skepticism. This phenomenon reaches a critical point when unexpected companies, like a sandwich restaurant, start incorporating trendy tech terms into their financial documents. This is exactly what is happening with Jersey Mike's, a fast-food chain that recently mentioned artificial intelligence in its IPO filings, with actor Danny DeVito as its public face.

The Irresistible Appeal of AI for Investors

In the current climate, investors are hungry for anything related to artificial intelligence. This trend even pushes companies with no direct ties to technology to weave references to AI into their communications. This applies to both unrelated startups seeking funding and companies like Bending Spoons, which acquire and rehabilitate aging tech firms. In this context, it is not surprising that Jersey Mike's felt the need to mention AI in its financial documents.

A Surprising Mention in Financial Documents

Upon examining Jersey Mike's IPO documents, one discovers that the term "artificial intelligence" and its acronym "AI" appear no less than 22 times. Yet, the restaurant chain does not sell AI software; it sells submarine sandwiches. This overabundance of mentions seems to cater to a demand from investors eager for AI-related products, even if it has no direct connection to the company's core business.

Vague Warnings to Investors

Jersey Mike's has found a way to include AI in its warnings to investors, albeit in a rather vague manner. The company merely states that it "is beginning to use AI technologies in its business," without specifying how or why this could pose a risk to investors. This approach stands in stark contrast to the frequency of mentions of "software" and "data," which appear 52 and 112 times, respectively, in the same S-1 document.

Comparison with Other Risks

It is interesting to note that Jersey Mike's warning about AI seems to be a standard text, perhaps even necessary, given the previous technological disasters in the food sector. For example, Starbucks recently abandoned an AI-based inventory tool that proved ineffective. Yet, the risk of AI causing a disaster at Jersey Mike's seems as unlikely as a store being struck by lightning, an event that actually occurred in Texas in 2021. Curiously, the weather is mentioned only five times in the document, and lightning not once.