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    Quiznos franchise narrowly avoids bankruptcy

    [caption id="attachment_8941" align="alignright" width="430" caption="Source: National Public Radio"][/caption]

    Through a last second deal with a deep-pocketed private equity investor, the once-celebrated Quiznos franchise has managed to narrowly avoid bankruptcy. The sandwich chain negotiated the extinguishing of some $300 million in obligations while securing a fresh $150 million in capital from NYC-based private equity backer Avenue Capital, a distressed investment fund with approximately $20 billion in assets under management.

    Despite a bruising economy and brutal competition from sandwich rival Subway, Quiznos was able to stave off total collapse at the franchisor level for years, leaning on (some franchisees would contend crushing) its franchisees by imposing rising supply costs and promotional efforts on its franchisee network. That strategy kept the franchisor afloat, but brought about a rapid shuttering of units, with some 600 Quiznos restaurants faltering in 2010 alone.

    With a second lease on life and control of the franchisor squarely in the hands of private equity professionals, will Quiznos be able to navigate a still-shaky economy, challenge Subway for supremacy, and win back the trust of its surviving franchisees?

    Read more about the Quiznos deal with Avenue Capital on NPR.

    See all articles from FranchiseHelp
     

    31 comments

    • Native Texan  •  Richardson, Texas  •  3 months ago
      It's only my opinion, but Subway, Jimmy John's, and Which Wich don't offer sandwiches nearly as good as Quiznos. When it comes to quality, Subway is the absolute worst. Yes, Quiznos does cost more. But I'd rather pay more and get something I actually enjoy eating. My concern is that Quiznos will end up lowering their quality to meet a certain price point. If that happens, I won't be going back. People want quality, but they're not willing to pay for it.
    • vinzgod  •  3 months ago
      they taste good! but they should get their heads together if they think they can charge 10$ for bread and cold cuts
      • La Stagione 3 months ago
        That's very true! I love them over Subway, but they are pricier. We don't have very many where I live, though.
      • Gregory 3 months ago
        And fewer they are now...
      • joe 3 months ago
        this article isn't about jimmy johns trash...
    • JH  •  3 months ago
      For what they charge for a sandwich, I would rather go to a regular restruant and have a good meal.
      • Gary M 3 months ago
        Learn to spell !
    • Alan G  •  St Louis, Missouri  •  3 months ago
      I go there once in a while. The food is good. but the prices could be better. There are plenty of other places I can go for a decent lunch.
    • James  •  Charleston, South Carolina  •  3 months ago
      Quizno's prices are outrageous on everything they sell when I am not at subway I go to the best fresh deli/produces seller of subs in my eyes priced about like quizno's and tastes 100 times better Larry's subs. Sorry Quizno's can't make it but there is only 2 sub places worth my business and millions others
    • Stealth  •  San Francisco, California  •  3 months ago
      IMO the "gourmet sandwich" food fad is over. One recently opened up in my town on a busy suburban downtown main street. I walk in on the first day and the staff is right on target with their well trained pitch. I looked at the prices and they all went silent. I told her their prices are two to three dollars more than they should be in this town to do the volume they need for solvency. The manager and later I found the franchisee walked in noticeably upset. I offered to buy one of their large turkey clubs for half price for opening day. Manager threw me out even after I told her I owned a business in one of the nearby office buildings. The place only lasted six months before there was brown paper on the glass with a notice of closing and thanks to "all their customers." IMO, that Subway two blocks away and the local Ma & Pa liquor store who makes killer deli sandwiches didn't have any of their business affected.
      • James 3 months ago
        doesn't surprise anyone i am sure Quizno's to be demolished for sure
    • Senioreditor  •  3 months ago
      Subway changed the whole game with the $5 footlong. Quiznos will be gone soon enough.
      • Stealth 3 months ago
        Agree, Subway is doing it right. Notice all of their buns are very light and fresh cooked in the store. They have a great supplier volume in the front door that translates into a good volume via the front door. I'd buy a franchise if it wasn't for the saturation of stores in my town now.
    • Sny5ive  •  3 months ago
      they charge more for their sandwiches...lower the price and you'll see a turnaround...
    • green thumb  •  3 months ago
      that's where they are failing. i pay 8 dollars for a 6 inch sub and i'm still hungry afterwards.
    • Jason  •  San Mateo, California  •  3 months ago
      It must be hard to sell crappy sandwiches for gourmet prices these days. Most of their stores in my neighborhood have gone out of business and I'm not surprised having had a couple of their sandwiches.
    • justin  •  Chesapeake, Virginia  •  3 months ago
      I worked at quiznos. The franchise owner wanted me to teach illegals working there english. I gave them a crash course as i walked out the door flipping them off. Norfolk Va.
      • -_- 3 months ago
        I would of told him once that is done what is in it for me? Sr leader, manager? I doubt your story but hey you got your 5 minutes of fame and thumbs up. I'm happy for you!
    • Robert Paulson  •  Chicago, Illinois  •  3 months ago
      I went to Quiznos once in my life. They put so little meat and so much lettuce in my sub I was basically eating nothing but the bread my sandwich is supposed to come in. Compared to their competitors, Subway, Potbelly's etc., and the fact that Quizno's is even more expensive while simultaneously skimping on the fixings, it's a no-brainer to not eat at Quizno's. And I never have since.
    • Peopleshouldthink  •  3 months ago
      The beef they use is around 1/3 gristle....at least that's about how much of my sandwich I spit out the last time I ate there. They have good salads and soup...just overpriced. Good luck basing a business model on that Quiznos.
    • David  •  3 months ago
      I knew a couple franchisees, and they were not happy with Quiznos. But then, from what I understand, people love their franchise for the first 5 years or so, then they regret they ever heard of them.
      Me, I didn't buy a franchise, I opened up my own shop. And I can tell you the best bit of advice I never followed -- never go into a business that is regulated by the government. Mine was regulated by the State of Texas, and they made being honest and profitable impossible. Yep, I'm out of business, but I'm still honest.
    • chuck r  •  3 months ago
      If I want toasted bread with a little bit of meat added I can do that at home.
    • Dispensible Satellite  •  San Diego, California  •  3 months ago
      Quiznos' prices are terrible because the franchisees need to charge those prices just to break even. The Quiznos franchise requires franchisees to purchase everything for the store, down to the toilet paper in the restrooms, from the Quiznos franchise at outrageous, non-competitive prices. That's the only thing keeping the franchise afloat: screwing anyone who was gullible enough to open a Quiznos. Back in the early part of last decade almost half of Quiznos were losing money rather than turning a profit and a quarter of Quiznos opened with a small business loan failed, leaving franchisees hundres of thousand or even millions in debt. Once the recession hit they started dropping like flies and counties that were full of Quiznos have few, if any, left. They're almost as hard to find as A&Ws.
    • Captain Cranium  •  New York, New York  •  3 months ago
      a novelty but way overpriced and very unhealthy
    • Colin  •  3 months ago
      Americans are stupid. Eat real food for cheaper and this article wont exist. You are fools.
    • James  •  Charleston, South Carolina  •  3 months ago
      I don't go to any place who sells subs because they offer carb calorie rich bread and the salads are as pricy as a soup/ salad at for 1 Olive Garden--2 Applebees--3any other places soup/salad that isn't a sub place.
    • trickytrunk  •  Cleveland, Ohio  •  3 months ago
      gotta know why the gay oven or bi sexual one at the very least.come on ron put it in mee
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