Jersey Mike’s IPO Highlights the Growing Problem of AI Hype in Corporate Filings

It can be difficult to pinpoint the exact moment when genuine enthusiasm for a new technology shifts into widespread hype. But when a sandwich chain known for having Danny DeVito as its public face starts discussing artificial intelligence in its IPO filing, it may be a sign that the trend has reached a new level.

That appears to be the case with Jersey Mike’s.

Given investors’ strong appetite for anything related to AI, it is understandable why technology companies increasingly highlight artificial intelligence in presentations and public filings. This trend extends from startups seeking venture capital to businesses like Bending Spoons, whose recent public debut centred on acquiring and revitalising older technology companies that are not themselves AI businesses.

Out of curiosity, a closer look at Jersey Mike’s IPO filing raises an interesting question: would a company best known for selling submarine sandwiches have any reason to mention artificial intelligence in its S-1 registration statement? Surprisingly, the answer is yes.

The terms “artificial intelligence” and “AI” appear a combined 22 times throughout the filing. Unlike software developers, Jersey Mike’s is not marketing AI products or services. Its core business remains making and selling sandwiches. Yet with investors placing significant value on AI-related businesses, references to artificial intelligence have clearly found their way into the company’s public offering documents.

Even more interesting is where those references appear. Rather than promoting AI as a business opportunity, Jersey Mike’s includes it within its risk disclosures. The filing does not provide detailed explanations of how artificial intelligence is currently used or why it could pose meaningful risks to investors. Instead, it offers only a broad statement noting, “We are beginning to use AI Technologies in our business.”

Jersey Mike’s operates a large franchise network that relies heavily on software systems and data, much like most modern businesses. The filing mentions software 52 times and data 112 times. Its AI-related disclosure largely resembles standard legal language that many companies now include, and perhaps such language has become increasingly necessary. Other food-service businesses have already encountered problems with AI, including Starbucks, which previously deployed an AI-powered inventory management system that reportedly struggled with basic inventory counting and was eventually discontinued.

Even so, it is difficult to argue that artificial intelligence represents one of the greatest risks facing a company whose primary business is preparing fresh sandwiches. The likelihood of AI causing a major operational crisis for a sandwich chain may be no greater than the odds of one of its restaurants being struck by lightning.

Ironically, that scenario actually occurred when a Jersey Mike’s location in Texas was struck by lightning in 2021. Despite that real-world event, weather is mentioned only five times throughout the company’s S-1 filing—and lightning itself is not mentioned at all.