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An Illinois Quiznos franchise explains why the business failed. It is shuttering its doors without being able to sell the sandwich shop.It is one of a thousand Quiznos that have closed, according to the article. A not-for-profit enterprise for senior citizens will expand into the for-profit's space.
“We originally chose to open a Quiznos franchise because of the company’s growth potential and the quality of its products,” said Follrath. “We did great business for the first few years, but sales have been swiftly declining since we hit our peak in 2007.”
According to information provided by Elgin’s Downtown Neighborhood Association, with the recession on the horizon, between 2007 and 2009, more than 1,000 franchisee-owned Quiznos closed.
“Franchisees cite rising Quiznos-distributor food costs, drastic coupon discounts such as buy-one, get-one-free sandwiches, and other corporate policy decisions,” the release stated. “Currently, Quiznos is requiring its franchisees to undergo a complete interior renovation and point-of-sale system upgrade.”
“Joe and Suzanne faced an onslaught of challenges with their business that were very much out of their control — corporate turmoil, prolonged street construction, and the recession are among the top three. The fact that they have persevered for this long is incredibly admirable,” said Tonya Hudson, executive director of the Downtown Neighborhood Association. “It’s a testament to the loyal customer base they built in downtown over the past eight years, and that is no easy task.” [via the Courier News]
What is interesting is that one would historically have expected a simple announcement in the local paper that the Quiznos was closing. Bear in mind that the negative comments were in a press release by a local business association--not a franchisee who is griping. What this shows is that in the new media age, the ability of "bad actors" to escape public opprobrium is much more difficult. That is a good thing, from a macroeconomic standpoint. And the fact that a senior citizen center can afford to pay the rent which a Quiznos cannot afford... well, that speaks volumes to the viability of Quiznos' business model.