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Quiznos CEO Touts Lofty Goals for Future

DSC00144DENVER – Newly appointed CEO Stuart K. Mathis has now presented seven strategic imperatives that he says Quiznos must meet to “make our mission, purpose and vision a reality.” Those three objectives are as follows:

Mission: To be the leader in the sandwich segment by providing an exceptional experience with quality flavorful subs and consistent, welcoming and fast customer service.

Purpose: To help create success for our franchising partners, vendors, investors and team members.

Vision for next 3-5 years: 5,000 restaurant locations globally, with more than $2 billion in system sales and 15,000+ total system-employed, with a significant percentage of loyal guests frequenting stores more than four times per month.

Mathis’ seven vital requirements listed in his December 12, 2012 email to franchisees and Quiznos’ corporate team are as follows:

  • Stabilizing their current store base
  • Becoming a more franchisee-centric organization
  • Enacting a winning brand strategy to create sustainable same store sales increases
  • Creating vibrant franchise community with improved franchisee satisfaction, retention and validation
  • Expand new restaurants globally
  • Execute optimal food distribution strategy
  • Optimize/manage company’s capital structure

The CEO states there are no “silver bullets” to achieve the imperatives that they have identified, but feels they can be reached by working together as a team. Franchisees will now be working with “franchise consultants,” who will be offering support in four identified regions. They have been commissioned to gather more information about franchisees’ restaurant economics.

Quiznos has also hired a VP of development to help create domestic solutions in growing the company. And they have engaged a purchasing consultancy to work with their food distribution center to find opportunities in their vendor contracts and pricing.

Mathis engages Boston Consulting Group, again

Mathis also explained that the company had initiated a research project with Boston Consulting Group that will include direct feedback from customers. He said Quiznos will be testing BCG’s findings in a market in the first quarter of 2013.

“We are waiting the results from our first Franchise Owners survey and hope to use your feedback to make enhancements to the support that we provide to you,” Mathis explained. He stressed that making visits to franchisee stores was a priority for Quiznos.

Mathis took over the chief executive position on July 30, after serving as president of The UPS Store for the past ten years. In his previous position, he helped engage the Boston Consulting Group in a feasibility study, which resulted in finding that 77 percent of UPS Store owners were operating at either an “at risk or worse status.” The study findings became part of evidence in litigation filed by Mail Boxes Etc franchisees against the UPS that they lost to prove that its new business model was flawed when forcing franchise owner to convert to The UPS Store model.

Continued meetings with franchisee association

CEO Mathis stated in last weeks’ memo that company officials continue their communications with the Quiznos Franchisee Association. But some store owners say they have received little satisfaction from those meetings. They complain that Mathis had not answered their questions as to how the company plans to fix its “broken business model,” and they question if he is out of his element in dealing with franchise owners’ current challenges. 

Franchisee are concerned about high food costs through Quiznos’ food distribution chain, the brand’s lack of an effective marketing campaign and how they are no longer competitive in the market. Some have expressed that the new CEO has failed to provide leadership and guidance for the franchisee community.

Mathis’ predecessor Greg MacDonald was asked to leave the company after franchisees complained of his lack of leadership. Store owners now tell that the last remaining upper management was also terminated the first of December, and Quiznos’ long-term “Chef Zach” has left the company. Blue MauMau asked Mathis to confirm or deny the chef is no longer with the company, but no response was given to emails.

In closing his email to franchisees, Mathis thanked owners for their continued dedication to the brand. The CEO states, “We will continue to work with the QZFA board (the independent franchisee association’s representatives) to more effectively communicate with you and to answer questions you may have about our strategic plan and direction for the future.”


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