Quiznos New CEO Dave Deno Speaks

Dave Deno, the newly promoted CEO of Quiznos speaks about why growth has slowed, store profitability and franchise relations. Judging from the answers, it is evident that Quiznos leaders are scratching their heads to answer how to tame their mountain of franchisee discontent.

CEO Deno tells reporter Dina Berta of Nation's Restaurant News that Quiznos is looking to build multi-unit operators in addition to their current chain characterized by small, single-unit mom & pop shops.

Will having more experienced multiunit operators help with franchisee relations?

Deno: My whole career has been about great relationships with franchisees. I could never figure out why systems argue with each other when they should be united to beat the competition. Let’s get the system unified and behind the great Quiznos brand. We are increasing communication with franchise owners and working on expanding with multiunit operators.

Deno's answer to uniting franchisees is by increasing multi-unit franchise owners that are more receptive to the corporate message. If increasing communication means simply sending more corporate messages to franchise owners, then change is not in the air for a network that has become known as one of the industry's most heavy-handed in relations between a franchisor and its franchisees.

The interview continues:

What is Quiznos doing to improve franchisee profitability?

Deno: Every day we’re trying to reduce costs for the franchise owner. Our purchasing organization is locking in prices. We’ve gotten away from doing a lot of couponing. Instead, we introduced the $5, $7 and $9 sandwiches as well as our $2 Sammies [flatbread sandwiches]. Our transactions are up significantly.

Say what?? Deno seems to say, "Let me answer your question about increasing the franchisee's bottom line . . . Uhm, our top line is up significantly through $2, $5 and $7 sandwiches."

Such answers fall short of the mark for a CEO of such a large chain. They are short and provide little meat.

But there is a ray of hope. It is in this message:

Deno: "My whole career has been about great relationships with franchisees."

Such a sentiment sounds like Quiznos' new CEO may not want a franchise relationship mess during his turn at the wheel. Engaging and listening to the Quiznos independent franchisee association, TSFA, would be a good start instead of terminating dissenting leaders and ignoring the association. Stopping the flood of franchisee legal torts would be another.

More messages from corporate won't do a thing.

Quiznos' franchisees, what do you think of the interview?