Quiznos Decline

Quiznos is a sandwich shop based in Denver, Colorado, that sells hot toasted subs, as well as soups and salads. Over the past few years, the business has been declining rapidly. Three major factors that have led to the decline of Quiznos include, franchise woes, production failure, and store closures due to thriving competitors. As far as statistics go, Quiznos went out of business very quickly. First off, the business had more than 5,000 locations by 2007 (Strauss 1). However, the company “closed 439 restaurants in the U.S and filed for Chapter 11 (Strauss 1). It is down to 1,500 stores worldwide, with 900 in the U.S” (Strauss 1). Quiznos had to begin cutting their full-time staff members, due to the decline in the number of locations (Strauss 1). The company only owns 6 out of the 1,500 restaurants that are still open, showing little control over their own company (Strauss 1). In 2008, Quiznos had about 5,000 restaurants up and running, but shrunk to about 2,000 restaurants today (Lutz). According to Lutz, “because Quiznos has fewer stores …show more content…
For example, “Quiznos has always added all the items, including veggies, to the sub before toasting. But last year, Quiznos started adding veggies after the toasting process, with the logic that veggies would taste better fresh” (Lutz). Customers were very confused by this tactic so Quiznos returned to their original method because it was hurting business (Lutz). Franchise owners have criticized Quiznos for charging too much for ingredients because it cuts into profits (Lutz). Last summer, Quiznos decreased the prices, however it was too late because profits were already damaged (Lutz). Lastly, Quiznos is deteriorating from a high debt load and bad relationships with franchisees, many of which sued the chain because they were forced to pay more for ingredients