I can't pinpoint the exact moment when genuine excitement over a transformative technology morphs into cringe-worthy hype, but I’m pretty sure I found a candidate: a sandwich shop with Danny DeVito as its public face talking about artificial intelligence in its initial public offering documents. Welcome to the IPO of Jersey Mike’s, where AI isn't just a tool—it's a buzzword flagged 22 times in the S-1 filing.
Jersey Mike’s, the fast-casual submarine sandwich chain founded in 1956 in Point Pleasant, New Jersey, has grown to over 2,000 locations, mostly run by franchisees. Its public debut comes at a time when the market is ravenous for anything AI-related. Tech companies of all stripes—from cloud providers to restaurant tech vendors—douse their pitches in AI dust to attract investor dollars. But when a company that sells sliced meats and cheese on bread feels compelled to mention "artificial intelligence" or its acronym twice as many times as it mentions "franchisee," something has gone awry.
To be fair, the term wasn't used to describe a new line of AI-powered subs. Instead, the risk factors section of the S-1 includes a boilerplate warning: "We are beginning to use AI Technologies in our business"—without specifying what those technologies are or how they could pose a risk. The disclosure appears to be a hedge against potential pitfalls, similar to how companies warn about cybersecurity threats even if they haven't been breached. Yet the vagueness is telling. If you can't explain what you're doing with AI, why are you mentioning it at all? The answer: investor psychology. In a market where the word "AI" can boost a stock price, even traditional businesses feel pressure to join the chorus.
A History of AI Hype in IPOs
This is not an isolated incident. The trend of shoehorning AI into public offerings has accelerated over the past two years. In 2024, an Italian app maker called Bending Spoons filed for an IPO with an S-1 that repeatedly referenced AI, despite being known for acquiring and rehabilitating aging, non-AI software. The company's pitch emphasized machine learning for user engagement and advertising optimization. Investors lapped it up, even as critics pointed out that the core business was built on purchased companies with little original AI research.
Another example is the SPAC merger of C3.ai, which saw its valuation soar in 2020 after heavy AI branding, only to later face scrutiny over revenue recognition and customer concentration. The hype cycle around AI has created a self-fulfilling prophecy: companies that call themselves AI-powered get higher multiples, which in turn encourages more companies to rebrand themselves as AI-centric. Even restaurants like KFC have experimented with AI-driven inventory systems and robot chefs, though many of those experiments have been quietly retired.
Starbucks famously deployed an AI inventory tool called Decadent, which was supposed to predict what ingredients would be needed at each store. It turned into a disaster: the system over-ordered pastries and under-ordered cups during peak hours. After a year of chaos, Starbucks scrapped the project in 2025. The lesson is clear: AI is not magic. For non-tech businesses, the risks of a failed implementation—lost revenue, damaged brand reputation—are often more tangible than the benefits.
Sandwiches vs. Simulations
Jersey Mike’s isn't claiming to sell AI software. It sells submarine sandwiches piled with cold cuts and veggies. Its primary operations involve slicing meat, assembling orders, and managing franchise relationships. So why the multiple references to AI? One possibility is that the company is exploring AI for back-office tasks like staff scheduling, supply chain optimization, or customer sentiment analysis based on online reviews. Another is that they are using chatbots for franchisee training. But none of these have been detailed in the prospectus, which instead treats AI as a generic risk factor alongside weather, competition, and food safety.
The irony is hard to miss. In the same document where AI appears 22 times, "lightning" is mentioned exactly zero times. Yet in 2021, a Jersey Mike’s franchise in Texas was struck by lightning, causing a fire and forcing a temporary closure. That real-world event was a distinct operational risk—far more concrete than a vague AI failure. But the company spent more ink warning investors about an unproven technology than about a known natural hazard. This misalignment reflects how the market has inverted priorities: a hype-driven term earns more attention than actual risks.
Of course, the IPO market enjoys absurdities. WeWatchTheStock, a meme-stock retailer, mentioned "NFT" 127 times in its S-1 at the peak of the crypto boom. But when the bubble burst, those same companies saw their shares collapse. AI may be different because it has genuine long-term value in specific domains, but for a sandwich chain, the payoff is unclear. The real risk is that investors, blinded by the AI label, overlook the fundamentals of the business: same-store sales growth, franchisee profitability, and margin trends.
The Cost of AI in a Non-Tech World
Deploying AI tools is not free. Jersey Mike’s would need to invest in data infrastructure, hire data scientists, or contract with vendors that claim to have AI solutions. These costs can eat into margins if the expected efficiencies don’t materialize. Moreover, if the AI system makes mistakes—like ordering too much turkey and not enough bread—the franchise owner bears the cost, not the corporate parent. The risk is magnified for a franchise model because bad AI implementations can strain the relationship between franchisor and franchisee.
Consider McDonald's, which invested heavily in AI drive-through voice ordering. After customer complaints about wrong orders and slow service, the pilot was scaled back in 2023. Even tech giants like Google have faced embarrassments with AI chatbots that provide incorrect information. For a company whose core product is simple and reliable—a sandwich made to order—adding a complex AI layer could introduce friction rather than convenience.
Yet the pressure to appear AI-forward is immense. Venture capital firms now ask every startup about their "AI moats." Public company analysts want to hear how AI will cut costs or increase revenue. The result is a kind of AI theater, where companies perform innovation by sprinkling buzzwords rather than implementing meaningful change.
Looking Ahead
As of July 2026, the AI hype wave shows no signs of cresting. But when a submarine sandwich chain becomes part of the performance, it's time to question whether the term has any remaining signal. The S-1 filing for Jersey Mike’s may be a canary in the coal mine—or in this case, a proverbial pickle on the floor. Investors would do well to look past the language and examine the actual business. Sandwiches are simple, satisfying, and profitable. AI, for now, remains a risky extra topping that might not be worth the price.
Source: TechCrunch News