Quiznos Subs files for bankruptcy (1 Viewer)

[wazoo11]

Quiznos files for bankruptcy

Quiznos has filed for bankruptcy protection, five days after the Sbarro pizza chain did the same.

Executives at the restaurant chain, known for its toasted sandwiches, agreed to a restructuring plan that will reduce its debt by more than $400 million, the company said in a statement Friday.

All but seven of Quizno's 2,100 restaurants in the United States and 30 other countries are independently owned franchises, and will remain open and operating as usual.

Quiznos once had more than 5,000 stores and could have threatened rival Subway's hold on the sub market. But now, Subway has nearly 20 times the number of stores, with about 40,000 locations in 100 countries.

Related: 10 big overtime pay violators

Quiznos CEO Stuart Mathis said the company will take action to help increase sales and profits for its franchise owners going forward. It will look to reduce food costs, invest in local advertising and, in some circumstances, make loans available for restaurant improvements.

The Denver-based company said it has lined up $15 million from investors to help keep the business running during the bankruptcy.

 

[Keerock]

Haven't been to a Quiznos in probably 5 years.

A neighbor of mine owns like 5 franchises... wonder how he's doing

 

[Leroy Hoard]

They're toasted.

 

[Godsbrother]

How in the hell did Subway get so big serving the crap that they do?

 

[Premier]

How in the hell did Subway get so big serving the crap that they do?

It's super cheap. And people are really stupid.Edit: that 5 dollar ad campaign was a true stroke of genius.

 

[Payne]

That's what happens when you start using inferior products, give smaller quantities of it and still charge your customers more.

 

[Steve Tasker]

How in the hell did Subway get so big serving the crap that they do?

People don't go to chains for quality, they go for consistency. I guess people like consistent crap.

 

[Slapdash]

Must suck to go out of business by offering a much better product.

 

[Joe Summer]

They never should have fired the Spongemonkeys.

https://www.youtube.com/watch?v=55oVPn7sFuM

 

[Northern Voice]

That's what happens when you start using inferior products, give smaller quantities of it and still charge your customers more.

Subway or Quiznos?

 

[bushdocda]

Toasty.

 

[glumpy]

Quiznos files for bankruptcy

All but seven of Quizno's 2,100 restaurants in the United States and 30 other countries are independently owned franchises, and will remain open and operating as usual.

So how does such a bankruptcy affect the franchises? Are they profitable while the company is not?

 

[Payne]

Had one of the dads from school walk away from his franchise. He was forced to sell his customers lower quality meats as well as less of it on each sandwich. He asked if he could pay (from his profits) to maintain the higher quality meats and cheeses and was turned down. Lost money for a few months and cut his losses.

 

[Parrothead]

profits must have melted away

 

[matttyl]

Likely because TheIronSheik has been going to Subway as of late.

 

[matuski]

Haven't been to a Quiznos in probably 5 years.

A neighbor of mine owns like 5 franchises... wonder how he's doing

I almost went in a couple stores myself a few years back.

Researching, I met some other franchisees... the stories varied wildly from uber successful to utter losses.

 

[BigSteelThrill]

He was forced to sell his customers lower quality meats as well as less of it on each sandwich. He asked if he could pay (from his profits) to maintain the higher quality meats and cheeses and was turned down.

Once they switched to the low quality meat, I never walked back in. About 3-4 years ago.

But I dont go to Subway either. Stopped that about 20 years.

Local sandwich/steakwich shops are the best bets by far.

 

[Dentist]

Saw that at their heydey they had 4000 franchises.. now down to nearly 2K

I would think the sandwich market would be a very tough segment to compete... so many players

Subway just wins at the marketing game if you ask me.. i hate their crap... I always thought Quiznos was pretty good, but admittedly hadn't been to one in a long while... I just don't eat out much

 

[mr roboto]

Quiznos files for bankruptcy

All but seven of Quizno's 2,100 restaurants in the United States and 30 other countries are independently owned franchises, and will remain open and operating as usual.

So how does such a bankruptcy affect the franchises? Are they profitable while the company is not?

Maybe. The franchisor (corporate) can mismanage their business independent of the unit performance. Franchisors generate revenue from royalties (monthly fees paid to corporate by franchisees), franchise fees (upfront payments for the right to open the business) and many times they develop their own distribution channels for required purchases (like food, equipment etc).ETA: I work as development director for a young growing franchise. Not in food. It's a very tough organization to grow and get right. Franchising is a business model in and of itself, and many franchisors make the leap from being good at the core business (sandwiches, fitness, lawn care etc) to franchising without considering the long term.

 

[T Bell]

Haven't been to a Quiznos in probably 5 years.

A neighbor of mine owns like 5 franchises... wonder how he's doing

From what I understand the margins on those types of businesses are razor thin. If you don't have a prime location and good business volume, you simply can't make money.

 

[avoiding injuries]

How in the hell did Subway get so big serving the crap that they do?

It's super cheap. And people are really stupid.Edit: that 5 dollar ad campaign was a true stroke of genius.

Which came first, $5 subs or Jerry? They seemed to time the healthy lunch option pretty well too.

 

[Northern Voice]

How in the hell did Subway get so big serving the crap that they do?

It's super cheap. And people are really stupid.Edit: that 5 dollar ad campaign was a true stroke of genius.

Which came first, $5 subs or Jerry? They seemed to time the healthy lunch option pretty well too.

Jared was around long before the $5 subs. When they went to the $5 campaign, they de-emphasized the healthy aspect of their marketing.

 

[sublimeone]

Never a big fan of Quiznos. Subway sucks too... and Jersey Mike's is terrible crap. Jimmy Johns is decent. I don't understand why there are so many sandwich franchises. The deli has to be the restaurant type with the lowest barriers to entry. Why buy a franchise with all the start-up costs and give away half your profit when you can start your own deli and run it your way?

 

[xulf]

I haven't had Quiznos in a few years, but it wasn't bad...but it was never a top-of-mind thought for food. Potbelly, W.G. Grinders, and Jimmy Johns are all far superior (along with plenty of others).

 

[MikeIke]

How in the hell did Subway get so big serving the crap that they do?

Buying a Subway franchise is much cheaper than most other fast food places.

 

[STEADYMOBBIN 22]

Never a big fan of Quiznos. Subway sucks too... and Jersey Mike's is terrible crap. Jimmy Johns is decent. I don't understand why there are so many sandwich franchises. The deli has to be the restaurant type with the lowest barriers to entry. Why buy a franchise with all the start-up costs and give away half your profit when you can start your own deli and run it your way?

Because when people ask Siri to find restraints in the area- Ira's Deli is a crapshoot. Subway is going to be cheap and consistent(ly lousy ), not unlike my wife in the sack.

 

[GregR]

Quiznos used to have that commercial where someone walking down the street picks the remains of a Quiznos sub out of a garbage can and starts eating it.

Ever since, the name Quiznos makes me think of the smell of rotting garbage.

 

[Ghost Rider]

Had one of the dads from school walk away from his franchise. He was forced to sell his customers lower quality meats as well as less of it on each sandwich. He asked if he could pay (from his profits) to maintain the higher quality meats and cheeses and was turned down. Lost money for a few months and cut his losses.

Not surprised. I still go there and get the Honey Bourbon Chicken, which is pretty tasty, but even that is suffering a bit cause they are dicing the chicken too much to where it becomes dried out, instead of just leaving them in the big long pieces they come in.

 

[Ministry of Pain]

Quizno's is not good. They were winning for a while because the sandwich was hot but the salt content was thru the roof, used to go in shock after eating one of their sammiches.

 

[Terpman22]

Yoga mat prices should increase with this news.

 

[Bull Dozier]

How in the hell did Subway get so big serving the crap that they do?

It's super cheap. And people are really stupid.Edit: that 5 dollar ad campaign was a true stroke of genius.

Which came first, $5 subs or Jerry? They seemed to time the healthy lunch option pretty well too.

Jared was around long before the $5 subs. When they went to the $5 campaign, they de-emphasized the healthy aspect of their marketing.

I suppose it depends on where you are, but a lot of the subs were sub $5 when Jared came along. I remember him joining the add campaign and the veggie and cold cut combos were three something for a foot long. Our Subway had a Sunday deal of any two footlongs for $8.

I'm sure places with a higher cost of living had different prices.

 

[B-Deep]

They never should have fired the Spongemonkeys. https://www.youtube.com/watch?v=55oVPn7sFuM

they got a pepper bar!!!!!!

 

[NCCommish]

Never cared for them. Haven't liked Subway for a long time. Jersey Mikes and Firehouse are good.

 

[CletiusMaximus]

There are too many people riding with the Paleo / Gluten-fee / Otis diet train these days. At least Jimmy John's offers the Unwich. Most of these sub / sandwich places have no options for the anti-bread crowd.

 

[John Bender]

The quality of the meat was noticeably garbage. Hated it.

 

[Slapdash]

There are too many people riding with the Paleo / Gluten-fee / Otis diet train these days. At least Jimmy John's offers the Unwich. Most of these sub / sandwich places have no options for the anti-bread crowd.

The Jimmy John's Unwhich is great. Wish Firehouse and Jersey Mike's would catch on so I could get some diversity.

 

[Slapdash]

How in the hell did Subway get so big serving the crap that they do?

It's super cheap. And people are really stupid.Edit: that 5 dollar ad campaign was a true stroke of genius.

Which came first, $5 subs or Jerry? They seemed to time the healthy lunch option pretty well too.

It was serious marketing coup that they convinced people Subway is a healthy choice for any meal.

 

[Niles Standish]

How in the hell did Subway get so big serving the crap that they do?

Fast food that people can pretend isn't unhealthy.

 

[Northern Voice]

How in the hell did Subway get so big serving the crap that they do?

It's super cheap. And people are really stupid.Edit: that 5 dollar ad campaign was a true stroke of genius.

Which came first, $5 subs or Jerry? They seemed to time the healthy lunch option pretty well too.

Jared was around long before the $5 subs. When they went to the $5 campaign, they de-emphasized the healthy aspect of their marketing.

I suppose it depends on where you are, but a lot of the subs were sub $5 when Jared came along. I remember him joining the add campaign and the veggie and cold cut combos were three something for a foot long. Our Subway had a Sunday deal of any two footlongs for $8.

I'm sure places with a higher cost of living had different prices.

OK, but Jared has been with Subway since 2000 and the $5 footlong campaign started in 2008.

 

[CletiusMaximus]

There are too many people riding with the Paleo / Gluten-fee / Otis diet train these days. At least Jimmy John's offers the Unwich. Most of these sub / sandwich places have no options for the anti-bread crowd.

The Jimmy John's Unwhich is great. Wish Firehouse and Jersey Mike's would catch on so I could get some diversity.

It makes the order-in lunch meetings much easier for me, as JJ's is often one of the first suggestions.

 

[Britney Spears]

There are too many people riding with the Paleo / Gluten-fee / Otis diet train these days. At least Jimmy John's offers the Unwich. Most of these sub / sandwich places have no options for the anti-bread crowd.

The Jimmy John's Unwhich is great. Wish Firehouse and Jersey Mike's would catch on so I could get some diversity.

Jersey Mike's has the sub in a tub, which is significantly better than the unwich.

 

[pollardsvision]

Never cared for them. Haven't liked Subway for a long time. Jersey Mikes and Firehouse are good.

Jersey Mikes and Firehouse knocked Quizno's out of this area. They are both better, and since Quizno's was going for the "better than Subway" sub market, there wasn't anything left for them. Local places too, of course, because so many people are trying to make money selling marked up cold cuts.

 

[Wingnut]

Ate at Quiznos maybe twice...better than subway but that's not saying much. Firehouse is okay but I'm not a fan of steamed meat on subs.

Give me mom and pop delis every time.

 

[seahawk 17]

Jimmy John's isn't bad, but I will kill a ####er for some Jersey Mikes.

 

[Pipes]

Never cared for them. Haven't liked Subway for a long time. Jersey Mikes and Firehouse are good.

A Firehouse just opened up a few blocks down the road. Great subs...especially for a chain.

 

[flysack]

How in the hell did Subway get so big serving the crap that they do?

It's super cheap. And people are really stupid.Edit: that 5 dollar ad campaign was a true stroke of genius.

Which came first, $5 subs or Jerry? They seemed to time the healthy lunch option pretty well too.

It was serious marketing coup that they convinced people Subway is a healthy choice for any meal.

Rivals Vitamin Water's mass illusion.

 

[LarryAllen'sJockstrap]

Subway wins the cheap and lousy sandwich shop market. When the new line of premium sandwich shops came along (Jersey Mike's, PotBelly, Jimmy John's, Firehouse), they didn't try to compete with them, they left their products as-is and focused on the value, vs. quality.



The ever-growing premium sandwich shop craze that has taken off in the last 5-10 years created an entire new market. High quality sandwiches, and corresponding high prices. Most of those places will cost an average $8-10 for a meal.



When Quiznos first came around, they were the premium sandwich shop market. If you wanted a fast food sub that was of better quality than Subway, Quiznos was your only option and they could charge premium prices for food that was better, but not ridiculously more so than Subway. However, once they gained competition in the premium sandwich market, they didn't respond by choosing a track or doing anything to differentiate themselves. They were still seen as a "Subway" class product with a bigger price tag.



Think of it this way

- Subway: C- class product, ~$6 meal

- Quiznos: C+ class product, ~$9 meal

- (JJs, JMs, Firehouse...): B+ class product, ~$10 meal



Folks will go to Subway for value. Folks will go to the premium shops for quality. A moderate uptick in quality (and a perceived "lower" class branding) doesn't equate to success when competing in a market that has seen an infusion of new competitors in the last decade. Subway was smart to say we're cheap; we're not going to compete against the premium places. Quiznos might have been better off aging gracefully by slowly lowering both the quality and cost of their product and becoming a viable #2 to Subway in the value market, instead of trying to continue competing in the premium market without improving their product.

 

[Premier]

Jimmy John's isn't bad, but I will kill a ####er for some Jersey Mikes.

What is so good about that place? Been twice. Plain bread, plain cold cuts. Not really fresh veggies. Don't get it.

 

[SacramentoBob]

Never cared for them. Haven't liked Subway for a long time. Jersey Mikes and Firehouse are good.

A Firehouse just opened up a few blocks down the road. Great subs...especially for a chain.

They put way too much sauce on their subs.

 

[seahawk 17]

Jimmy John's isn't bad, but I will kill a ####er for some Jersey Mikes.

What is so good about that place? Been twice. Plain bread, plain cold cuts. Not really fresh veggies. Don't get it.

In my experience it's the only chain sub shop whose bread does not immediately get soggy. I'm not sure why, but I love that they shave the meat in front of you. My mind says, "This is not some fake meat that has been sitting here all day." The veggies I have had, has always been fresh and crisp. The vinegar and oil dressing is the most flavorful I have had in my life.

In addition, I have been to three different locations and had great customer service in all three and the experience was the same, which is hard to find with franchises.

I'm addicted to it. (Twice a month)



ETA: #13 is the best of them all.