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Quiznos: What Went Wrong

Guest post by: Sarah Snyder

Article Overview: What factors lead to the decline of Quiznos and how can they return?

Free Download - Quiznos and Loyalty Clubs By Sarah Snyder
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Quiznos: What Went Wrong

Quiznos has been all over the news lately. In fact, according to recent reports, over 40% has shut their doors during the slow economy. Since the sandwich franchise wanted to avoid bankruptcy, however, they gave over power to Avenue Capital last week. Since new ownership can bring some apprehension, National Public Radio writer Ben Markus, interviewed a franchisee about the change of power.

The franchisee was happy about the change, however. The Denver-based sandwich franchise had made some bad decisions. Firstly, as explained by the franchisee, Quiznos owned the supply chain. Therefore, when the franchisee had to buy the supplies for the restaurant, it was necessary to buy through Quiznos. This presented a problem because the "chains has an incentive to push higher volumes through deep discounts." Discounts that apparently hurt the franchisee. When the franchisor makes money and the franchisee does not, that's when you have the problem.
So now that Quiznos is under new ownership and alleviated some of the piling debt, it seems that the franchisees are ready for new leadership and to start making money again. Instead of getting gouged for the supplies, and having to adhere to deep discounts or "buy one get one free" deals, Quiznos franchisees are hoping to be treated fairly and once again work with the franchise to establish prosperity for everyone.
The franchise might have to start by fixing the system that is currently in place and also encouraging more people to franchise with them. If you kill the entrepreneurial spirit, you are going to see the brand fail as a whole. That's why I bet the Quiznos franchise is planning a comeback in a big way. The brand's foundation is solid; it only has to learn to take care of its franchisees.

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Article Tags: business opportunities, Franchise Clique, franchises for sale, Quiznos franchise, restaurant franchises, restaurant franchises for sale

About the Author: Sarah Snyder
RSS for Sarah's articles - Visit Sarah's website

Sarah Snyder is Content Writer for Franchise Clique.

Click here to visit Sarah's website Dashed Line

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Related Forum Posts
Re: Dominos vs Subway Re: Dominos vs Subway - The Dominos message is cloudy. As posted, their image is for Pizza, not subs. Is it just pizza ingredients on a bun? Are they baking the subs and delivering them, or do they bring them so that the buyer can put them in the oven? (Presume the former, but still, the message is not clear.) "Preferred 2 to 1," by whom, and under what cicumstances? Does waiting for delivery factor into the preference? I am not sure that Dominos can greatly impact the leader. Subway has hurt Quiznos franchisees with the $5 promotion, because Quiznos has higher ingredient costs. Quiznos really didn't have a response. I noticed a "lower prices" banner at a Quiznos I visited yesterday, but that is a long way from $5 for foot longs.
Re: When Franchisees Get Mad Re: When Franchisees Get Mad - [quote="RussellWebb":kfjnri12]"The original action filed in New Jersey claimed Quiznos collected approximately $75 million in franchise fees while providing nothing in return for the 3,000-plus franchisees.[/quote:kfjnri12] Hi RussellWebb, What was Quiznos supposed to provide for their 3000 plus franchises? And would you happen to know when the issue will be resolved?
Names our important Names our important - [quote:1sb3nkhz]There troubles began with an aggressive growth strategy spearheaded by the father and son team that bought Quiznos back in 1991, Rick and Dick Shaden - aka 'The Shady's'. [/quote:1sb3nkhz] People with names ripe for those kinds of nicknames really should stay on the straight and narrow! Or change their names!
Re: Why Franchises Fail Re: Why Franchises Fail - [quote="Nana":307g5e63]Another reason franchises can fail is due to lack of effort on the franchisees part. If the franchisee does not give it their 110% and purely imitates rather than innovates they will increase their chance of failure.[/quote:307g5e63] I agree. Sometimes franchisees rely too much on the franchisor. They think the franchisor will run their business. Wrong! The franchisee is responsible for manging day to day operations of his franchise location.
Your Intial Mistakes Business Your Intial Mistakes Business - Hi, When I started my business I had made a lot of mistakes initially. These helped me in learning the art of the trade and today when I look back, I feel that these mistakes were quite silly. I had made my learnings then and those learnings have helped me time and again. Some of the mistakes I made were - i. Wrong Time Management ii. Wasting money on glossy Brochures and Business cards iii. Believing what they taught me at school was 100% correct iv. Giving too much when it was not required...... I would like to find out what have been your faltering moments in Business when you had started and what/how did they help you grow. Regards


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