Quizno's

From Wikipedia, the free encyclopedia

QIP Holder, LLC
d/b/a Quiznos Sub
Type private
Founded 1981
Headquarters US flag Denver, Colorado
Key people Greg Brenneman, CEO
Rick Schaden, Chairman
John L. Gallivan, CFO
Industry Restaurants
Products Subs, Salads
other food products
Revenue ▲ $130 million USD (2004)
Website http://www.quiznos.com/

Quiznos is a fast-food sandwich franchise that specializes in toasted submarine sandwiches. As of 2005, it is the second-largest submarine sandwich shop chain in North America, passing the older and slower-growing Blimpie, though still a fraction of the size of Subway.

There are over 5,000 shops located in the United States, over 300 in Canada, and 100 more scattered in 20 other countries including the United Kingdom, Australia, Ireland, Iceland, Aruba, Cayman Islands, Costa Rica, Puerto Rico, Colombia, Turkey, South Korea, Guatemala, El Salvador, Guam and Panama.

In 2002, Wendy's Supa Sundaes acquired the rights to the brand for franchises in Australia (and later, New Zealand) but were unsuccessful in launching the chain in either country. Quiznos no longer operates in either country.

All of Quiznos' sandwiches are served toasted, although they will be served untoasted at the customer's request. The best selling subs are the Classic Italian, the Mesquite Chicken with Bacon, the Prime Rib Cheesesteak, the Chicken Carbonara, and the Turkey, Ranch and Swiss sub.[citation needed]

While Quiznos did not originate the toasted sub, their rapid success is thought to have led to other chains following suit. Subway began offering toasted subs in 2004; Boston Market began toasting their sandwiches in 2005, and Blimpie began offering toasted subs in 2006.

Contents

[edit] Advertising

Typical Quiznos franchise
Typical Quiznos franchise

Over the years, Quiznos has had varied success at advertising campaigns. The company's first major advertising splash came with a successful ad during the 2002 Super Bowl. Early TV spots advertised the innovation of toasting sandwiches, as compared to the inventor of pants (humorously contrasted with men wearing bushes). Another ad that debuted in 2003 depicted a man "raised by wolves" suckling at a mother wolf's teat; this however was not so successful. A pair of ads in early 2004 featuring Spongmonkeys produced strongly mixed reactions by reviewers and the ads were quickly pulled.

Quiznos ads in Canada have featured hockey commentator Don Cherry.

In 2005, Quiznos launched a series of ads featuring Baby Bob; Bob originated as an Internet blog phenomenon, but was also attached to a short-lived CBS TV series. In the new commercials, Bob is voiced by Ken Hudson Campbell.

Quiznos has also been known to take advantage of underground advertising phenomena in localized areas. For example, they were one of the first advertisers to put ads on the back of famous San Francisco eccentric and alien protester Frank Chu's sign.

In June 2006, Quiznos revealed their new slogan: "Eat Up." Nationally the subs feature a Quiznos sub with digital steam emanating from it with the slogan, "Mmmm... toasty," spoken as "Mm mm mm mm mm... toasty." This slogan, the aforementioned one, and a newer one, "Love what you eat." are used interchangeably. Actor Michael Clarke Duncan currently provides the voiceover for all Quiznos commercials.

On September 18, 2006, Quiznos launched the most aggressive advertising campaign aimed at Subway. Dubbed the Prime Rib Cheesesteak Challenge, customers are challenged to compare the brand new Prime Rib Cheesesteak against Subway's Cheesesteak sandwich. The claim is that the Prime Rib Cheesesteak has twice the meat of Subway's Cheesesteak. If the customers are not satisfied, then they can fill out a form, mail the form along with their receipt, and they will receive a coupon for a free sandwich. One of said commercials features a woman saying '"It's not lacking any meat, and that's what real women need."

In more recent advertisements, Quiznos is shown competing with the fictional “Wrong Way” restaurant whose logo, name and toaster look similar to Subway's.

In Fall 2007, Quiznos unveiled "Sammies", small flatbread sandwiches available for $2.[1]

After Subway's latest marketing promotion of $5 foot long sandwiches, Quiznos began matching the promotion. In May 2008, Quiznos is offering Large Deli Sandwiches for the same price. Though it should be noted that Quizno's large sandwiches are in fact only eleven inches.

[edit] History

Quizno's turkey sandwich.
Quizno's turkey sandwich.

In 1978, a small group of investors, led by entertainment executive Terrell Braly, converted a closed Sinclair gas station at 1275 Grant Street in Denver, Colorado into a sandwich shop called "Sandwich World". The store manager, Hussain "Jeff" Jaffarie, a recent refugee from Iran, soon began the practice of toasting sandwiches in a pizza oven provided by Tombstone pizza. In 1979, Footers Restaurant, owned by Jimmy Lambatos and Todd Disner opened for business across the street from Sandwich World. Repeated offers to buy the larger and better located Sandwich World were accepted in early 1980.

The new owners changed to name to Quizno's and began a franchising arm. A University of Colorado student, Rick Schaden, happened by while visiting the State Capital and was so impressed that he bought a Quiznos franchise for Boulder. Soon after Rick and his father purchased the small operation and created the master expansion plan for what was to become one of the largest sandwich chains in America.

Quiznos is currently a privately held Limited Liability Company. Chairman Rick Schaden and his family control the company.

[edit] Controversy

[edit] Alleged unfair treatment of franchisees

Quiznos has been the target of several lawsuits related to its treatment of franchisees. A New Jersey lawsuit relates to the $25,000.00 in licensing fees Quiznos charges its franchisees. The lawsuit contends that Quiznos often collects and pockets this fee without fulfilling its obligation to find store locations. A Wisconsin lawsuit complains that Quiznos licensing agreements compel franchisees to buy all their supplies -- from sandwich meat to paper towels -- from Quiznos-owned vendors that charge higher prices than those of independent suppliers. The corporation receives millions of dollars in rebates from these vendors.[1]

[edit] Suicide of a franchise owner

On November 27, 2006, Bhupinder Baber, the franchise owner of two Long Beach, CA Quiznos, committed suicide by shooting himself in the stomach three times while inside the bathroom of a Quiznos located in Whittier, CA. Baber had been in a long legal battle with the company after suing it for opening new stores too close to his own locations.[2][3] Quiznos had retaliated by terminating Baber's franchises and suing him on two separate occasions.[4] In a two page suicide note found on Baber's body, he accused Quiznos of mistreating franchise owners like him, contributing to a rapid decline in his physical and mental health. "Quiznos has killed me. Destroyed my life. Destroyed my family life for the past seven years," Baber wrote in the note.[5] A group of critical Quiznos franchisees, known as The Toasted Subs Franchisee Association, posted the note on their website http://www.toastedsubs.info intending to raise funds for the Baber family. Quiznos, stating that the group was defaming the company, responded by terminating the contracts of eight franchise owners belonging to the group. These franchisees in turn filed an injunction on December 15, 2006 in the District Court of Colorado against Quiznos which is currently pending.[6]

[edit] Bad publicity

In June 2004, the Quiznos at Downtown Crossing, Boston, Massachusetts, was at the center of a hepatitis scare.[7]

Quiznos received some unusual publicity beginning in February 2005 when the Seattle Times broke the story of Dawna Lentz, a manager of a shop located in a strip mall in North Seattle, Washington. A month after the shop opened, the managing partner left, leaving an absentee owner in charge. He stopped putting money into the shop, and soon severed contact with the shop's employees altogether. Lentz kept the place running for several months, paying employees out of the cash register and buying supplies at grocery stores when the suppliers stopped delivering. Quiznos at first did not pay attention to Lentz, and her requests for help were ignored. However, when the experience became the subject of a story of an episode of PRI's This American Life, Quiznos swiftly took over operations of the store, and the company praised Lentz for her handling of the situation.

Although not exactly bad publicity, in April of 2007 a coyote wandered into a Quiznos in downtown Chicago, and sat down in the beverage cooler after unsuccessfully attempting to jump over the counter, while customers watched. The incident also attracted many onlookers. The animal remained passive, and did not show aggression until it was captured by animal control 40 minutes later, and taken to a wildlife rehab center. Fortunately, no one was attacked. The animal control workers named the coyote Adrian.[8]

[edit] Profitability

Recently Entrepreneur magazine's 2007 Franchise 500 list was released and Quiznos was not on it.[9] The magazine had ranked the sub chain #2 in 2006.[10]

[edit] Nutritional information newly available

After not releasing their nutritional information until recently[when?][citation needed], it is now available at Quiznos Sub stores as well as on the menu pages of their website (beside each menu item). Also online and in store are calorie intake charts and Allergen Information.

[edit] References

  1. ^ [http://www.nytimes.com/2007/02/24/business/24quiznos.html Creswell, Julie. "When Disillusion Sets In." The New York Times. February 24, 2007.
  2. ^ [http://www.nytimes.com/2007/02/24/business/24quiznos.html Creswell, Julie. "When Disillusion Sets In." The New York Times. February 24, 2007.
  3. ^ Quiznos fires 8 franchisees - The Denver Post
  4. ^ Quiznos franchisees fight back | Branding & Franchising | Fast Casual
  5. ^ http://extras.mnginteractive.com/live/media/site36/2006/1215/20061215_010137_BZ15_QuizSuicideNote.pdf
  6. ^ "Quiznos franchisees fight back" By Fred Minnick 15 Dec 2006
  7. ^ Hundreds Show Up For Quiznos Hepatitis Clinic
  8. ^ "Coyote captured in Loop to be set free," ABC 7 Chicago, Apr 4, 2007 (video and slideshow)
  9. ^ Top Franchise Opportunities
  10. ^ Top Franchise Opportunities

[edit] External links