Quiznos Appoints Clyde Rucker as COO to Help Bring Franchisee Profitability

Posted Fri, 2008/09/26 - 18:44 by Janet Sparks

Clyde Rucker is Quiznos' new COO. Photo/Quiznos

DENVER (Blue MauMau) - In broadcasting the appointment of Clyde Rucker as its executive vice president and chief operating officer, Quiznos prefaced its announcement with the following statement: "Deep operations expertise and creating a positive culture that promotes success are key attributes Rucker brings to support franchisee profitability."

President Dave Deno said in the announcement that Rucker was dedicated to Quiznos' mission of improving franchise owners profitability, so they can realize the full potential of their brand. "Clyde is an incredible leader who is committed to operations excellence and consistently delivering a gold standard experience in every restaurant. He knows the importance that great operations and strong franchise relations play in building sales."

Rucker joined the toasted sub franchise chain in May 2007, as its chief administrative officer. He is also president of Quiznos' Latin America division and will continue in that role. He joined Quiznos in May 2007, after serving as Burger KIng Corporation's vice president for its central region, managing the operations of over 2,000 restaurants covering 14 states, with approximately $2 billion in annual sales. Prior to that he had worked for Arby's and KFC, in a variety of roles from operations to new channel development.

Greg Brenneman, now chairman of Quiznos after stepping down as its CEO, stated, "Clyde's appointment is just another example of how we continue to build Quiznos' world-class management team under Dave's leadership." Brenneman also came to Quiznos from Burger King, where he served as CEO and chairman. He added, "Clyde has very deep operating experience and a true heart for franchise owners and franchiser owner profitability. He will bring enormous energy, passion, commitment and expertise to the COO role.

Rucker said he was convinced that, now more than ever, Quiznos has an incredible opportunity to expand globally as well as to become an even stronger brand and more profitable enterprise for franchise owners. He stated, "I am excited to bring my experience with and commitment to operations excellence and building a positive culture that encourages success to support Dave and the management team in our drive to take Quiznos to the next level."

The Toasted Subs Franchisee Association did not return phone calls to make comment prior to publishing.

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Clyde Rucker as COO? Quiznos Never Seizes to Amaze! by Guest

Submitted by Guest on Fri, 2008/10/24 - 00:54.

If it isn't the ridiculous monkey on TV, it is another highly over qualified reject from the corporate world. Why do I say highly qualified? Well, if they come from Burger King, KFC, Pizza Hut, Arby's, Baskin Robins, etc. they must know what they are doing, right? Wrong!!! They keep bringing rejects and their pals to fix a problem that can't be fixed until recognized. Hello... can anyone at corporate listen to what FOs are saying? Mr. Rucker, selling a $9.50 sub for $9.99 isn't going to address the problem unless you can show us how to sell 1000 of these subs a day!!! Mr. Rucker as COO made his opening statement to So. Cal FOs by saying that he didn't have much knowledge about store operations and that he'd be spending a couple of weeks in Nov. at a Texas training store to understand store operations. Oh, and to show his commitment to the job, he is going to turn off his smart phone during this time so he is not distracted by calls and emails. Imagine that... The Chief Operating Officer who has no knowledge of the operations to which he is appointed as chief officer is going to be unreachable for two weeks. Dear FOs, we may be doomed (or blessed) at least until the end of November while the COO is learning the ropes. We had to pay a Franchise Fee, buy a plane ticket, rent a hotel room, and spend 3 weeks (unpaid) in training before being able to open our stores but Mr. Rucker who has been an executive with Q since May 2007 has had the luxury to milk the fat royalty cow that we feed for a year and half before deciding to put some effort into understanding store operations. How is that creating a positive culture that promotes success? As FOs, most of us understood what we were getting into. No one put a gun to our heads. Some of us, not realizing the ramifications, got selfish and fell for the deceptive advise from Q's bonus-hungry real estate bullies and agreed to open stores near existing stores, across from Subway, in expensive and unsuitable locations. We have paid and are still paying for believing in the lies and false promises made by a slew of Q corporate slaves. The problems are many and the solutions are few and painful. We need accountability and acceptance of responsibility at Quiznos Corporate. We need people who understand what it is like to be pushed against the wall, people who can feel the pain, people who can make hard decisions and have the authority and ability to execute them. We are asking for help NOW! We want action NOW! We need a miracle NOW! FO

Re: Clyde Rucker as COO? Quiznos Never Seizes to Amaze! by maddog

Submitted by maddog on Fri, 2008/10/24 - 23:39.

Just about everything that needs to be said, has been said ..........

Until the time when the dick(s) are outsted from owning any part of this chain, nothing is going to change.

Will that take place in a court of law, or the boardrooms of CCMP (JPM), I don't know ....................

Clyde, Deno, Turner, Provost are all mouthpieces at best !

World Class Management Team by Quizkillingme

Submitted by Quizkillingme on Fri, 2008/10/24 - 07:05.

World class? What? The new Quiznos Mission Statement is "We strive to be the leader in the sandwich market and to have more boarded up stores than any food chain in the nation" "In order to accomplish this, we have brought in World Class rejects from other struggling chains". "We plan to use high food costs, ineffective marketing and advertising, and a drastically lower average check amount to force franchise owners into bankruptcy". "Additionally, we will continue to ignore any helpful advice from the franchise community. Common sense is not asked for nor will be implemented". "If we want your opinion, we will give it to you".

Rucker Part Of The Problem by Guest

Submitted by Guest on Sun, 2008/09/28 - 13:57.

Rucker can't support something that isn't happening. Unless he has the authority to make the necessary changes outlined in other posts on this page he's not the solution, he's just part of the problem.

My money is bet on the proposition that by RichardSolomon

Submitted by RichardSolomon on Mon, 2008/10/06 - 08:06.

franchisee profitability is the one thing Rucker will not be given authority to do anything about.--

Any takers?

Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School

Rucker Will Have The by Guest

Submitted by Guest on Mon, 2008/10/06 - 08:40.

same authority as brennenman and dino have. And that would be none.

Q Expansion A Joke by Guest

Submitted by Guest on Sat, 2008/09/27 - 17:48.

Expand globally? Q already tried that. Does Mr. Rucker know what happened in Australia when Quiznos tried to export its high food cost, anti-franchisee attitude to the land down under? In case he's forgotten or wasn't told Q tried to do the QScrew to the Aussies. They were sued, lost and were told to pay up and leave. Quiznos is the reason the Aussies have moved to strengthen protections for franchisees. Quiznos is looking overseas because their US system is falling apart. One thousand franchisees have gone broke in the past year - more than 600 restaurants have gone dark. Q's answer to the growing franchisee revolt over giveaway pricing and poor quality is to send out threatening letters and mandate delivery. There is no effort to fix the system and institute the needed changes in costs and direction that will save more franchisees from bankruptcy. Rucker, like Dino, is just another Schaden lap dog who will spew the company line. The Dicks still run Quiznos and their philosophy is well known in the system - maximize corporate profits no matter what the cost. Some who read this post will go down to the banner ad and click on it anyway. They'd love to own a Quiznos and no one can convince them otherwise. I'm all for it. Afterall misery loves company.

Who's the leader in this category? by Guest

Submitted by Guest on Sat, 2008/09/27 - 22:39.

If you did it over again, which sandwich shop do you think is more profitable, has better leadership and treats franchisees better than Q? 1. Blimpie's 2. Subway 3. Port of Subs Any other?

Can't Recommend Any Sub Shop But Q The Worst by Guest

Submitted by Guest on Sun, 2008/09/28 - 06:36.

Not the original poster but here's my take: On hindsight I would never buy a franchise no matter what the product unless I was getting a unique product that I felt could withstand downward pricing pressures, a protected territory, and franchisee control of (in the case of subs) food, paper, supplies, and advertising through co-ops. I would also want it written into the contract that I could buy outside the system in certain circumstances and that the franchisor, if private, would be required to provide me with an audited financial statement similar to what public companies are required to make public. Remember, I'm an investor in the franchise system, not an employee. What I bought was supposed to be a premium sandwich shop that competed with Panera Bread, Jimmy John's ect. That was the business model - chef inspired sandwiches. I never considered cheap sub shops competition until Q made them competition. Since Quiznos sub shops can't compete on price the Q has put franchisees in a position to fail. As for other sub chains: 1. Subway, with all its warts, is still a profitable operation and the franchisees control both the food and advertising budgets via co-ops. Not having a protected territory makes it a long-term gamble. 2. Never considered Blimpies - poor reputation and a contracting system. 3. I talked to Firehouse Sub guys who liked the franchise and were making money. It was growing at the time, had protected territories and lower costs than Q. As for Quiznos, stay away, stay far, far away. I've worked in corporate America and it's without a doubt the worst business I've ever been associated with. The philosophy of squeezing franchisees its ham handed tactics, and blame the franchisee first attitude starts at the top with the Dicks and works its way through the entire system. Mandatory pricing, mandatory delivery, outrageous food and supply costs, taking the vendor kickbacks rather than passing them down to franchisees, putting Q's side by side, and churning stores are just some of the reasons to reject Q out of hand. Finally, Quiznos is a contracting system. The food quality is bad and getting worse, store closings are increasing and many of the stores still operating are break even or less. The poster who said 1,000 franchisees were forced to close or sell for pennies on the dollar in the past year is probably right there on the number. Fewer stores in the system means less advertising and increased pressure from corporate on franchisees. It's a failed system.

Best Sandwich Shop Practices by Guest

Submitted by Guest on Sun, 2008/09/28 - 08:48.

Good names getting thrown out. To recap, you speak favorably of these three firms: Firehouse Subs Panera Bread Subway (Value subs. You say, "at least profitable") And avoid Blimpie's at all costs. You speak of avoiding a franchise that does not have protected territory and some sort of co-op of franchisees controlling supply prices. I think the KFC (Yum! Brands) franchisee association negotiated something like that for their system years ago. I believe that Subway has had to make concessions to their franchisees and their independent franchisee association. Franchisees now have a coop that controls marketing funds. While franchisors typically pool marketing funds, in Subway’s case, SFAFT is a completely separate legal entity. Good advice. Good names. Thanks.

Ironic ! by Guest

Submitted by Guest on Sat, 2008/09/27 - 16:26.

I find it ironic that just below all of the comments on this article, is a banner ad inviting visitors to investigate buying a Quiznos ! Talk about poor ad placements - which is a window into the operations of this franchise ......

Smooth marketing by Guest

Submitted by Guest on Sat, 2008/09/27 - 23:09.

An ad on the bottom gives an impression to buyers that Quiznos tolerates a wide spectrum of differing opinions. Clever marketers.

Q Marketing Ineffective, Uninspiring, Uncreative by Guest

Submitted by Guest on Mon, 2008/10/06 - 11:58.

A smart marketer would go nowhere near this site, or any other that allows the truth to be told, to try and sell Quiznos franchises. Although the advertising over the past year has been so ineffective, uninspiring and uncreative that it wouldn't surprise me that your theory is actually their marketing strategy. Almost like greedy lawyers and accountants were running the company. Oh wait, they are. Anyone who clicks on a Quiznos banner or uses a different way to contact Quiznos about buying a franchise will get exactly what he/she deserves...the QScrew.

Don't Expect Change From Rucker And Quiznos by Guest

Submitted by Guest on Fri, 2008/09/26 - 20:53.

No where in that story did I see anything about cutting costs down to get Q's competitive with the competition. Quiznos food and paper costs are 10% higher than Jimmy John's and Subway. Quiznos franchisees pay 35%+ for food and paper. They also pay 12% of sales off the top to Quiznos to be a part of the system and pay for advertising; again significantly more than the competition. For that 12% franchisees have gotten screwed by Q. Q mandates that franchisees buy EVERYTHING from AFD, Q's wholly owned supplier. In return Quiznos inflates the cost of products AND take the vendor kickbacks. Q mandates artificially low prices that are unsustainable in a period of rising prices. Q's quality has deteriorated to the point that the current slimeball sandwich is made from port parts and chicken pieces pressure washed off the bone. The Prime Rib is grizzled, the ham is now no better than Subway's. Speaking of the Slimeball sandwich, that was Quiznos "NEW" sandwich for the latest "event". A sandwich that was discontinued a year ago because of low sales. Millions of dollars spent pushing a sandwich that no-one ate a year ago. What happened to innovative sandwiches like the Chicken Milano? They disappeared with Chef Jimmy. Lets talk about delivery. Q now wants to mandate a program that costs franchisees $10,000 upfront and increases the cost significantly. All to deliver sandwiches with no PROFIT when all the costs are figured in. And don't be fooled. All Quiznos deliver when the order is big enough to justify delivery. Forcing franchisees to deliver 2 $5 large subs will leave franchisees deeper in the hole than they already are. Coming from BK isn't necessarily a positive. BK makes its money through low prices and volume. Greg Brennenman wants to compete on price. But Q isn't BK. Q's don't have a drive thru and it's business model was originally created to deliver a premium sandwich, not roll-out crapola like Subway. The stores aren't setup for Brennenman's blueprint and quite frankly, his lack of vision. And what is Mr. Rucker's record in Latin America. What has he done to help franchisees? What kind of ideas does he have to help franchisees? And does it really matter? (p)Rick and Dick are still very much involved in the runningo of Quiznos. The management team is more concerned with maximizing profits at any cost and pushing an IPO. Maintaining a strong system with happy, profitable franchisees is NOT a priority of Quiznos, no matter what spin comes out of Denver.

Quiznos food costs and delivery by Quizkillingme

Submitted by Quizkillingme on Sat, 2008/10/25 - 06:46.

Guest,

If you want to make a statement, don't inflate your numbers. Subways food and paper is running about 30% whereas Quiznos is running about 34% net three for most owners. Your 10% higher number is ricidulous. Lastly, the delivery program is not $10k but around $6500 (less if you get them to work a deal for you which they have done in many cases) One more thing, threre are a lot of Quiznos paying only 11% off the top and still some older agreements paying 10%.

re: Quiznos food costs and delivery by Guest

Submitted by Guest on Sat, 2008/10/25 - 09:38.

Quizkillingme, I agree, while making a statement one should check emotions at the door and be prepared to back up any claims. But, I may have to agree to an extent with guest #1 on a couple of items. You may think the numbers are inflated, but he is not that far off. 1. The Subway owners I have talked to say their food costs run around 25%. Of course they fluctuate from time to time and store to store, but that seems to be in line. Of course the same applies with Quiznos, stores food costs will vary from store to store, but on average it appears to still be high. 2. The delivery program (up front) is $6,500. There are however many hidden fees that are not part of that price tag. (Insurance, added labor, etc…) These hidden fees do add up. Also when Quiznos gave some stores a discounted rate on the delivery fee, they said the difference would come out of the mat fund. (In essence we paid for it anyway.) 3. I do believe the majority of stores pay 11% for royalties/ad fees. But the mat areas are at 12%. (Quiznos’ was pushing mat in quite a few areas a few years back. Not sure what % are mat stores today.) While (years ago) Quiznos would tout that food costs in this chain average 27%, to be at 34% is not a good thing. A percentage swing like this over a long period could likely put many small businesses out of business. I believe (my opinion at this time) this percentage increase is the direct result from the AFD mark ups that started around 2001-2002. I can understand the frustration people feel when the chain they bought into keeps making decisions which almost guaranty failure. Guest #9,932,485

Points of interest to Quizkillingme by Guest

Submitted by Guest on Sat, 2008/10/25 - 12:17.

A couple of comments on you food costs and delivery. 1. The mark ups on food and equipement have been going on since day one, and have actually decreased over time. To the best of my knowledge they now only charge a distribution fee and use of trademark fee, but very little to any actual mark up on product. That allows them to accurately state that they are not marking up the product, while keeping their cash flow going. The distribution fee is fairly substantial on food products, along with the real increase in shipping costs and commodities, combined with the fact that they are purchasing more expensive specialty products, causes the high food costs. Your product sales mix also skews toward the higher food cost items which furthers the cost issue for owners. 2. My friends in the Dominoes world expect to deliver 1,000 sandwiches a week per store in the near future. They are doing very well with the program and know how to run the delivery business and they will own that market very soon. They will be adding pasta delivery in the near future. There are no easy answers to the Quiznos problem. Consumers in this economy expect good quality and great service, great taste and variety at a very competitive price. Quiznos struggles in all of these areas and their low level of commitment by their franchisees due to their financial problems makes solving them all the more difficult. Service in most stores stinks, and the value for the dollar is poor. There are now many other companies providing toasted sandwich options, at better prices, with good service and variety. Why would the consumer drive past all of these good options just to pay a premium price at Quiznos? The old corporate skape goat was that previous management was bad. At least previous management actually owned and operated their own stores and were intimately involved in day to day operations and development. Today there isn't anyone left that has any idea what it is like to try to run a sandwich shop on the revenues and with the cost structure currently in place. I feel for the owners, but they were all in favor of bringing in these new managers. Fortunately I got out in time when the "corporate geniuses" were brought in, most did not and will continue to pay the price until something significant changes.

re: Point of Interest by Guest

Submitted by Guest on Sat, 2008/10/25 - 14:21.

Guest, Interesting points. You say: The mark ups on food and equipement have been going on since day one, and have actually decreased over time. To the best of my knowledge they now only charge a distribution fee and use of trademark fee, but very little to any actual mark up on product. That allows them to accurately state that they are not marking up the product, while keeping their cash flow going. I have not seen nor heard anything that would lead me to believe mark-ups have been removed. Then again, putting a new label on a markup doesn't mean the markup no longer exists. I have to ask; Where or who are you getting your infomation from? I also need to look into the trademark fee you mention. Isn’t that why we pay a royalty fee? Seems to me like double taxation.

When Will You See Changes At Q? by Guest

Submitted by Guest on Fri, 2008/09/26 - 21:02.

The day Q begins making the changes outlined above is the day the rats better be ready to jump ship because that's when you'll know that the good old days are over, the gravy train has stopped, and the day of reckoning has arrived.

Franchise owner profitability ? by Guest

Submitted by Guest on Fri, 2008/09/26 - 23:34.

I have seen lip service paid for FO profitability for 4 years. Yet, every initiative emanating from Denver is designed to increase Quiznos profits. The word is seriously out - with bankers, landlords R.E. agents and business brokers - don't believe me , just ask your local professional. This chain is in a death spiral, and will take the remaining store owners down with them ! The only consolation is the "empty suit" execs will go down with the store owners, and may have trouble securing employment in the QSR industry with Quiznos on their resumes. The first step towards solving a problem is admission, and these retread execs are far from it ..........

Quiznos Appoints Clyde Rucker as COO to Help Bring Franchisee Profitability

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