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Quiznos files for bankruptcy

Floundering Quiznos Files For Chapter 11 Bankruptcy

Sub shop Quiznos announced Friday that it was filing for bankruptcy. Choked by more than half a billion dollars of debt, the chain is restructuring, cutting almost $400 million of owed money, and, for the moment ... is toast.
Pundits say the downfall of Quiznos can be pinned on a myriad of problems, but one of the main causes seems to be the company's relationship with its franchisees, who are described as "acrimonious," "disgruntled," and "maltreated" by The Denver Post.

In 2009, a class-action lawsuit settlement forced Quiznos to pay $95 million to its independently-owned franchises, that, according to the Post, originally sued because expensive ingredients made it nearly impossible to turn a profit.

CEO Stuart Mathis promised to aid franchisees, writing in a statement, "We look forward to continuing to work with and support our global network of franchise owners, who are the backbone of our business."
Stiff competition has also played a factor in Quiznos downfall. Since 2008's national recession, an IBIS report says Quiznos restaurant numbers have dropped by over 50% while its competitors, like Subway and Jimmy John's, are thriving.

And according to Businessweek, since its popular Five Dollar Footlong deal began, Subway alone rocketed to 40,000 stores and is planning to open 10,000 more in the next four years.

Boasting higher quality sandwiches and toaster ovens, Quiznos soon discovered "that all most people want from a sandwich is to know that it's healthy and cheap."

The news comes after weeks of bankruptcy rumors, but the chain has already laid out a blueprint to get back in the sandwich game.
According to the Denver Business Journal, Quizno's will reduce its sub costs, offer loans to struggling franchisees and even provide new incentives for interested owners.
Perhaps they should work on their advertising strategy too, for who could forget those wacky singing rats. "The Quizno's subs! They are tasty, they are crunchy, they are warm because they toast them!"
That was weird. Anyway, despite the whole bankruptcy thing, nearly all of the sub shop's 2,100 franchises will remain open throughout the restructuring process.

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gorgeous March 15 2014 at 11:40 AM

The problem is the location of every single Quizno's I have ever seen. They are sort of off the beaten track, usually hard to get into and out of, and no drive-thru. I am handicapped, so that presents a big problem to me. Think on that, Quizno's restricting people!

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Robert March 15 2014 at 3:03 AM

One big problem is the rent that these stores have to pay. You must have huge volume of business in order to servive.

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jpenne1441 March 15 2014 at 1:37 PM

Sorry guys, but I love my Quiznos Honey Chicken Salad. My husband loves his roast beef sandwich. Our franchise in Windsor is the best and the people working there are even better.

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ladiesnightevent March 15 2014 at 12:00 PM

This wouldn't have anything to do with the dead rat (or what ever animal it was) commercial that they thought was a smart idea??? Who eats food from a place with dead rodents?

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Odens Fist March 15 2014 at 3:39 AM

Quiznos treated it's franchisees like CRAP.

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mashallaha March 15 2014 at 1:27 PM

That's disappointing. I loved their food... MUCH, MUCH better than Subway or Jimmy John's.

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kmaninlala March 15 2014 at 4:02 AM

Quizno's has good sandwiches, but pricey. Yes, you pay for quality, but...

As for the "singing rats", do your research! They're "spong monkeys" from www.rathergood.com; check them out! They rock out! (Discovered from their smash hit, "We Like Tha Moon")

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sharon.brown24 March 15 2014 at 1:25 PM

all of the meat comes from out of a can... lol

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elizaanne.lynne March 15 2014 at 4:13 AM

Quizno's is pricey, but the food quality is superb. Worth every penny ... er, once a week. Very few people could afford to patronize it daily.

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David & Michaela March 15 2014 at 1:23 PM

Living in Denver, the quick service capital of the world, (no kidding, besides quiznos, boston market, noodles and co., einsteins, chipotle, qdoba, smashburger, etc, etc,) i've watched more than one great idea fail because of corporate greed or apathy for the franchisees that make the whole thing work. (See 'Spicy Pickle', Einateins, and 1990's Boston Chicken) Luckily there are quite a few up and comers. Check out Mod Market, Pizzeria Locale, and an outstanding newcomer on the 16th st. mall, Duck Soup.

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