“Whether it’s Jimmy John’s or Subway or Blimpie, there’s not a whole lot of secrets in the sandwich segment. It’s lunch meat put on bread.”
-Michael Liautaud, interview with Franchise Times Magazine, September 2006.
What’s the secret to sub-shop success?
A low, white building sits between the Aberdeen and the Embassy apartment buildings. There’s nothing there now; plywood and broken windows serve as a “now closed” sign for its most recent occupant, Pizza Bianca. But for Michael “Big Mike” Liautaud, that spot sets off a touch of nostalgic pride. It’s the site of the very first Big Mike’s Super Subs, the sandwich franchise now known as Milio’s. From those humble roots have grown 47 restaurants in four midwest states.
I walked a block or two northwest from there and arrived at the Milio’s currently nearest campus. Its building is the first indicator of Milio’s Madison roots – an unadorned brick structure like its neighbors – but shaped like a wedge to accommodate the five-way intersection of University, Frances and Gilman that’s just one of those parts of living on an isthmus.
Inside was Turner Farrand, an employee there for the past year and a half. He says Milio’s college-town heritage is evident in more than just it’s architecture. Since Milio’s is in close proximity to four bars, he said, “There could be 50 people in here sometimes at night. But you won’t see us screaming at each other – we’re still chill. We run a chill – but tight – ship.”
And Big Mike himself tips his hat to his company’s headquarters. “We still run all operations out of Madison. Our home is in Madison.” He also spoke passionately of the role Milio’s has taken on for local events, stating, “Being in Madison has allowed us to be a part of the community by helping out at charitable events. We really truly feel like we’re a part of the community here.”
But with locations as far-flung as Omaha, maybe a little of that Madison spirit got lost along the way. That name change happened when Mike wanted a franchise name he could trademark so he could enter new areas. The Milio’s website greets visitors with an animation of hundreds of sandwiches raining down looking like so many tasty lunch-bombs, attracting attention to a contest inviting devotees to submit a video to win $1000 worth of free meals.
But that’s business, right? Sometimes you have to sacrifice a little bit of yourself to sell a sandwich or two. Surely no one would deny Big Mike’s right to bring his meals to other markets.
Actually, yes – someone did do exactly that – and it was a first cousin, a member of the family. His name is James John Liautaud, but you might know him better by his preferred monicker: Jimmy John.
Jimmy John had already founded his eponymous franchise when Mike was just getting started. He sued his cousin for expanding outside of Madison, producing a letter he’d written to Mike in 1988. Jimmy had agreed that Mike could “open up a sub shop in Madison using Jimmy John’s products and systems,” but added, “if you want to expand the sub/club business beyond Madison you will do so using Jimmy John’s sub shops as a partner or franchise. This is subject to 100 percent agreement on both parties.”
In 1991, a Big Mikes Super Subs opened in LaCrosse, and the lawsuit followed.
According to documents from a July 2000 decision in the US Court of Appeals for the Seventh Circuit, “Jim agreed to provide Michael with his ‘secrets of success’ so that Michael could open a Big Mike’s Super Subs.” But the attempt to keep Big Mike’s in Madison turned out to be illegally restrictive. As Mike pointed out, the lawsuit was dismissed on summary judgment. “Basically the court decided that, well, there’s nothing to this case and they dismissed it before it really went to trial.”
Mike and Turner both easily named differences between Milio’s and Jimmy Johns: a bigger menu, better bread selection, a different culture and corporate attitude. But, Mike noted, “The real story here shouldn’t be some lawsuit. But it should be two guys [him and Jimmy] sitting around a campfire, talking about how to make money. And we’ve both been very successful.”
Undoubtedly so. But how? The college-town roots? A broadened marketing strategy? Website animations? Aggressive corporate tactics? Superior bread selection?
As I left Milio’s I thanked Turner for the interview and reached for the counter – not to shake hands, but to grab my order. I got a number nine, the Italian Club. It comes with two types of ham, salami, provolone cheese, lettuce, tomato, mustard and mayo. It was under six dollars and took about a minute to make.
In my opinion, it’s a damn fine sandwich.
