Blimpie International, Inc., doing business as Blimpie (stylized as BLiMPiE), is an American

submarine sandwich A submarine sandwich, commonly known as a sub, hoagie ( Philadelphia metropolitan area and Western Pennsylvania English), hero ( New York City English), Italian ( Maine English), grinder (New England English), wedge (Westchester, NY), or a spuc ...

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based in

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. It was founded in

Hoboken, New Jersey Hoboken ( ; Unami: ') is a city in Hudson County in the U.S. state of New Jersey. As of the 2020 U.S. census, the city's population was 60,417. The Census Bureau's Population Estimates Program calculated that the city's population was 58,690 ...

, in 1964, by three friends, and has since endured three ownership changes.

History

1960s — mid-1970s

The first Blimpie sub shop opened on May 16, 1964, in Hoboken by Tony Conza, Peter DeCarlo, and Angelo Baldassare, former high school friends and classmates at Saint Peter's Prep in

Jersey City Jersey City is the second-most populous city in the U.S. state of New Jersey, after Newark.Point Pleasant operation Mike's Submarines (later

Jersey Mike's Subs A Sub Above, LLC., doing business as Jersey Mike's Subs, is an American submarine sandwich chain headquartered in Manasquan, New Jersey. The Jersey Mike's franchise has about 2000 locations. Outside of the United States, there are two locations ...

), the three speculated that a similar restaurant would do well in Hoboken. The store's name came about because Tony Conza preferred not to call the sandwiches subs, which he felt sounded like a

greasy spoon A greasy spoon is a small, cheap restaurant – either an American diner or coffee shop, or a British or Irish cafe – typically specializing in fried foods or home-cooked meals. The term ''greasy spoon'' has been used in the United States sinc ...

. Conza preferred the term

hoagie A submarine sandwich, commonly known as a sub, hoagie ( Philadelphia metropolitan area and Western Pennsylvania English), hero ( New York City English), Italian ( Maine English), grinder (New England English), wedge (Westchester, NY), or a spuc ...

s, but Hoboken residents were unfamiliar with the

Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...

term. He scanned a dictionary until he found "Blimp", a word that sounded to him most like a sandwich.Kleinfield, N.R. (December 13, 1987
"Trying to Build a Bigger Blimpie"
''

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''. Accessed June 29, 2010.

Late 1970s — 1989

Conza felt that there was little potential in submarine sandwiches, and in 1984 opened Border Café, a tablecloth restaurant serving southwestern cuisine on Manhattan's Upper East Side. Although the Border Café did reasonably well at first, this shift in focus did not do the company much good. While Conza was turning his attention away from subs, competitor Subway, which was founded a year after the first Blimpie's was opened, was beginning an expansion drive that pushed it far ahead of Blimpie as the world's foremost submarine sandwich chain. After the Border Café's initial success, Conza opened two more of them in 1986, one in Woodstock, New York, and the other on the Upper West Side of Manhattan. However, the Border Café idea was a money loser. Despite $4.5 million in revenues for 1987 (its largest total yet), the company showed a net loss of $347,800 for the year. That year, only 30 new Blimpie restaurants were opened, and company stock was in free fall, bottoming out as low as 15 cents per share. Conza's interest in his core business began to return. Over the next couple of years, Atlanta became the company's biggest target for new Blimpie's franchises. In 1987, the company celebrated the opening of the 50th Blimpie's store in the Atlanta area by giving away 25,000 free sandwiches to customers there. Blimpie launched a quality-control program aimed at cleaning up its 140 New York restaurants, which had long been subpar. In 1989 Blimpie began testing a new low-calorie menu.

1990 — present

By the beginning of 1992, there were Blimpie restaurants in 27 states. That year, the chain passed the 500-unit mark and the company changed its name to Blimpie International, Inc. In the spring of 1993, Blimpie began trading its stock on the NASDAQ exchange. Around that time, the company began to more aggressively advertise than it had in the past, doubling its marketing budget to about $2 million per year. A new advertising campaign was launched, including television, radio, print, and point-of-purchase. This campaign marked the introduction of the chain's new tag line: "Simply Blimpie for fresh-sliced subs." Some television spots featured people on the street struggling to repeat the tongue-twisting phrase, "Simply Blimpie." Blimpie system sales reached $132 million by 1993, and Blimpie International earned $1 million on $12 million in revenue. By autumn of that year, the chain had 670 outlets. Improved marketing support from the parent company reduced the rate of franchise failures from 10 percent to 3 percent. In some cases, such as in the

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market, Conza allowed franchisees to divert their 6 percent annual franchise fee to advertising. As the 1990s continued, Blimpie devised a new concept that aimed to grow the company even more. Blimpie's franchises began appearing in nontraditional locations. First was convenience stores; as convenience store proprietors began to seek ways to compensate for declining cigarette sales, they turned to fast food. Blimpie's was appealing for many, mainly for two reasons: a real kitchen was not required, and startup costs were relatively low (as little as $35,000) compared with other fast-food operations. Among the early nontraditional sites for Blimpie's outlets were the

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-based

Kum & Go Kum & Go is a convenience store chain primarily located in the Midwestern United States. The company, started by William A. Krause and Tony S. Gentle, based in Des Moines, Iowa, operates 400 stores in 13 states—primarily in its home state of I ...

convenience store chain,

Texaco Texaco, Inc. ("The Texas Company") is an American oil brand owned and operated by Chevron Corporation. Its flagship product is its fuel "Texaco with Techron". It also owned the Havoline motor oil brand. Texaco was an independent company unt ...

Food Marts in

Mississippi Mississippi () is a state in the Southeastern region of the United States, bordered to the north by Tennessee; to the east by Alabama; to the south by the Gulf of Mexico; to the southwest by Louisiana; and to the northwest by Arkansas. Miss ...

, and the food court at the

University of Texas The University of Texas at Austin (UT Austin, UT, or Texas) is a public research university in Austin, Texas. It was founded in 1883 and is the oldest institution in the University of Texas System. With 40,916 undergraduate students, 11,075 ...

. Blimpie's also became part of the first

Home Depot The Home Depot, Inc., is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement re ...

superstore restaurant section, located in Atlanta. In 1994, the company launched several new concepts to further its drive for nontraditional venues. The "Blimpie kiosk" was a movable, condensed restaurant that could fit into a area. The kiosk, which could serve four types of sandwiches, drinks, and side orders, was designed for use at stadiums, fairs, and other events. Other new concepts included a special refrigerated case for convenience stores (an expanding market), and the 'Blimpie Bakery', offering a variety of baked goods aimed at boosting early morning business.

Blimpie reached two major milestones in 1995. One was that the chain passed the 1,000-outlet mark that year. Blimpie International opened its first international location in Stockholm, Sweden. With the opening of new outlets in the US slowing and with overseas growth occurring at a slow pace (there were only 61 overseas locations in 15 countries by 2001), Blimpie launched a new diversification effort in the late 1990s. The first such initiative came late in 1997 when the company acquired a 75 percent stake in Maui Tacos, a fast-food chain with six units in Hawaii. This concept featured traditional quick-service Mexican food, such as burritos, tacos, and quesadillas, but with a Hawaiian twist, such as meat marinated in pineapple, lime, and other Hawaiian flavorings. Under Blimpie's majority ownership, Maui Tacos was soon introduced to the mainland, and by 2001 there were 15 units in nine states and the District of Columbia. After almost two years of in-house development, Blimpie launched Pasta Central in 1999. Unlike Maui Tacos, Pasta Central was not a standalone concept but was created as a co-branding vehicle, coupled with Blimpie Subs & Salads. Co-branding emerged as a growth vehicle in the late 1990s and involved the placement of two (or more) restaurant brands within a single unit. However, net income fell steadily throughout the second half of the 1990s. A main factor in this decline was that the subfranchiser rights to the Blimpie Subs chain had largely been sold by the mid-1990s, thus bringing a halt to what had been a steady stream of income, and by the turn of the 2000s, Blimpie International was struggling. As Blimpie's struggles continued, investors showed little interest in the company, and the price of the company's stock sagged. Seeing little benefit in being a publicly traded firm, Blimpie joined the growing ranks of restaurant companies fleeing the public market. In October 2001 a private investor group led by Jeffrey K. Endervelt, owner of the 44-unit Blimpie of California subfranchise, agreed to buy Blimpie International for $25.7 million. The transaction was completed in January 2002, whereupon Endervelt took over as chairman, president, and chief executive officer, and Conza, a partner in the investor group, remained in an advisory capacity. In 2006, Kahala Corp. acquired Blimpie, and it became the tenth brand franchised by the franchisor. By 2011 the number of Blimpie locations had fallen to 739 stores, and revenue was down to just over $110 million. In 2016,

MTY Food Group MTY Food Group is a Canadian franchisor and operator of numerous casual dining, fast casual, and quick service restaurants operating under more than 70 brand names, some of them through wholly owned subsidiaries. Headquartered in the Montreal bor ...

Inc. struck a deal valued at more than $300-million (U.S.) to acquire Arizona-based Kahala Brands Ltd. and its 2,900 locations in 25 countries.

References

External links