The CEO of the newly public sandwich chain says the company needs to be more proactive about reaching younger customers

Jersey Mike's began trading on the New York Stock Exchange on Thursday.

As Jersey Mike's Subs wrapped up its first day as a public company, its CEO said the sandwich chain needs to do more to attract younger customers amid a tough stretch for the restaurant industry.

CEO Charlie Morrison told MarketWatch on Thursday that the chain's most loyal customers come by around once a month. They tend to be men who are a little older and make a bit more money. The company typically reached those customers via TV ads during hockey, baseball and college-football games.

But he said Jersey Mike's $(JMKE)$, whose shares fell around 6% after making their trading debut, hadn't been active enough in engaging younger fans who also like its sandwiches.

"We haven't been talking to them as much," he said. "We're really focusing our marketing efforts now on expanding that younger audience, that more diverse audience, and bringing them in - instead of once or twice a year, on a much more frequent basis."

Morrison said that Jersey Mike's was armed with a $200 million annual advertising fund. But he said that in past years, the company had spent "zero dollars, effectively," on social media or digitally-connected marketing.

This year, he said, the company was spending roughly $40 million on social media and digital. Those efforts, he said, would be part of Jersey Mike's longer-term strategy to drive sales.

Morrison said the marketing strategy has started to pay off. Transactions are growing, he said. New customers have been coming in. Philly Cheesesteaks, along with new hot Italian subs, have proven popular among younger consumers. Women and more health-conscious consumers were gravitating to a new chicken-salad sandwich.

Jersey Mike's on Wednesday said it had priced its initial public offering of around 43 million shares at $23 apiece, right in the middle of its expected price range. The company, which trades on the New York Stock Exchange, said it would use the proceeds from part of the offering for "general corporate purposes" and to repay debts.

The investment firm Blackstone (BX) will hold most of the voting power of Jersey Mike's shares that can be used to pick board directors. The chain publicly filed its IPO paperwork this month, following a confidential filing in April. Inspire Brands - the company that owns Dunkin', Baskin-Robbins and a handful of other chains - confidentially filed for an IPO in May.

The moves to go public have come as the restaurant industry struggles with subdued demand, as higher prices keep shoppers anxious about their budgets. Restaurant chains have discounted aggressively to get those customers back. But Wall Street remains concerned about demand from lower-income consumers.

When Jersey Mike's publicly filed its IPO paperwork this month, the company said its customers tended to be middle- and higher-income, helping insulate the business from the industry's current difficulties. Total sales for Jersey Mike's were around $4.22 billion last year, up around 13% on a year-over-year basis.

Jersey Mike's made its debut as U.S. issuances reach record levels. However, some analysts think the surge in IPOs is a sign of danger for the market.

-Bill Peters