Good morning!
Here are today’s highlights:
Alan Pentz writes that you probably should hire an AI chief of staff.
A crafts retailer demonstrates what AI can do that traditional search cannot.
Roland Burdett had no intention of selling Miklos Systems—until he confronted an often-overlooked risk that ESOPs can present.
Some companies are already planning to offer smaller raises in 2027.
PRIVATE EQUITY
The Washington Post rushes to defend misunderstood PE firms: “Jersey Mike’s, the country’s second-largest sub chain after Subway, went public on Thursday. It’s a major success story for one of America’s most vilified industries: private equity. The very words ‘private equity’ are near curse words for many politicians and activists who complain about ‘vampire capitalism’ a la Karl Marx. But what private equity actually does is a lot less sinister — and a lot more boring — than its critics suggest. Investment firm Blackstone bought 80 percent of Jersey Mike’s in 2024. Most customers probably didn’t notice. The chain’s existing sandwich offerings hardly changed.”
“What did change was the way the company was run. Peter Cancro, who built the chain from a single restaurant beginning in 1975, was still calling the shots before Blackstone came in. The skills involved in turning a small business into a large one are different from the skills involved in managing a large firm. Founders can also develop personality cults that are bad for business. Blackstone decided not to acquire the company’s $41 million private jet and stopped paying several of Cancro’s family members.”
“Blackstone hired Charlie Morrison, who took Wingstop public in 2015, as the new CEO. It wasn’t looking to sell Jersey Mike’s for scrap. It added hundreds of new locations during its 18 months of ownership. In June, Jersey Mike’s was rated at the top of quick service restaurants in the American Customer Satisfaction Index, unseating Chick-fil-A.”
“Blackstone left the good products alone, cut back on C-suite excesses, grew the chain, and is thinking long-term. If that doesn’t sound like private equity, maybe it’s worth considering whether the populist caricature of it is fair.” READ MORE
