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Log In / Register | Mar 19, 2010

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?

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Franchize bailouts by Owner

Ok. Here is what we should do. Corporate gets a TARP loan from the govenerment and buys out distressed or closed franchizes. Corporate can pay...say $100K for a store still in business and say...$50K for one that has closed. Thus making them company owned stores. Corperations do this all the time. This would be a bargin for Corp. and a life line to franchize owners who are looking at 15 to 25,000 from this black Knight running around buying Quiznos. You know the knight isn't going to keep the Q name on them. He is buying the location. Again, I insist corperate get involved, SOMEHOW! We as owners were and are there for them. Even when corperate was on their BAM parties all over the world at our expence. HELP!!! Jim from Fargo

Dave Deno by Guest

Dangerous Dave is out and they have the original lunkhead back in. Quiznos Corporation is all for themselves and no one else. Beleive me I know where of I speak! I'm a reovering Franchise owner. They are selling them to 3rd world refugees for as little as $3,000.00 & this is why quality and service is so bad.
They do these controversial commercials so they can get some coverage. Their budget is nil due to the fact that so many good owners are forced to close up, and being replaced by unqualified owners.
Incidentally for all those who say the subs are smaller than Sub-way, you are right but thy don't hide it. It clearly says that their subs are 5", 8" and 11".

George W. isn't the onlt idiot by Guest
I have personally forced two Quiznos into closure and am now working on my third I know an associate who just shut one down and I know that 9 others in the area all shut down...Trying to steal anothers thunder will get you struck by lightning suckers.
Area by Marty
What area of the country are you referring to and when you say you forced this what do you mean by that?
That is amazing by Guest
a human taught you how to type. But tell me the truth ... someone gave you the answer to the math question that allowed you to post. Perhaps you could get them to teach you how to spell your name and then you could register here. No hurry .. just try ... but be patient ... you will get there. And your parent will be so proud. Cee B
Quiznos imploding, hard to watch by Guest
It is a shame what is happening to Quiznos. I became friends with a franchise owner about a year ago. The $5 head-to-head strategy vs. Subway was a disaster that Crisper's and Panera had the good sense to sidestep. Instead of pitching what is better about Quiznos food, Brenahan went full tilt with "Just as cheap as Subway!" I guess he doesn't realize how bad Subway food tastes. Maybe he doesn't know anything about sandwiches. The Quiznos menu is ridiculously confusing. No one knows what "Signature" or "Classic" means. The menu should use meaningful, easily comprehensible groupings. The entire sales process need to be re-engineered so a salesperson interacts with the customer to nail down the order - size, bread, meat, sauces, cheese, veggis - and get the money. The production employees then fill the order without interacting with the customer again. Quiznos corp appears to only care about getting their 11% while the franchisees are left to deal with fixed rent payments and no profit every month. This strategy will destroy the business. It is painful to watch the chain being destroyed by bad corporate management. My friend's restaurant is for sale now, like so many others.
Agreement by Marty
I can't agree more with your comments. I own a Quiznos and these problems are just the tip of the iceberg. There is no corporate support, horrible advertising and corporate just plain doesn't care if the franchiees stay in business or not.
Quiznos Imploding by Guest
Much better to watch from the sidelines than work in one of these every day watching stupid decision after stupid decision being made. Executives are in a revolving door at corporate. The new executive of the month is introduced to the franchise community as somebody who had a great career heading into the new Quiznos position. Problem is, these morons come in and throw their "strategy" to the wall and nothing sticks.
Open Quiznos at 4400 - And Falling by Guest
Well, here's the latest about the world's fastest contacting QSR and it isn't pretty. Quiznos Franchisees Walloped by Recession For the Qtard who questioned me concerning how many Q restaurants are currently open; read the article and apologize. You shouldn't write degrogatory things unless YOU can back it up. I obviously can. Tricky Dick Emmett is mentioned in the story as Senior VP Dick rather than as Legal whatever Dick. It's not a good sign that a lawyer whose knowledge of running restaurants is even less than his law knowledge is answering questions concerning operations. Where was Dino at? Of course, Dino is an accountant whose knowledge of running a restaurant is probably no better than Emmet's. There is no magic bullet on the horizon for this chain. And when Quiznos starts promising variety and value franchisees start worrying. Q is already trying to mandate $5 larges and $3.99 small prime ribs. How much more "value" is left to offer? The problems with this chain are easy to dissect. The costs are too high, "Chef" Zach hasn't created a winner yet, the quality stinks, and the profits are non-existant for FRANCHISEES. Until the costs are inline with the competition - which means cutting at least 15% off the top - than this chain is will continue to disintegrate.
Prvost Gone, Brenneman Gone by Quizkillingme

The self-proclaimed Dream Team is falling apart.  We have an organization that is splitting apart at the seams.   Executives leaving for unknown reasons being replaced with even less experienced people. 

Here it is in a nutshell.  The Quiznos business model is broke.  Corporate knows it, franchise owners know it.  It's no secret.  These Bozos picked a fight with Subway, got their noses bloodied and are now in full retreat.  Of course the true losers here are the owners who had to shut their doors because of being put in the middle of a no-win battle with Subway.

 I would not be surprised to see the help desk personnel have a V.P. on their title sometime soon.

How Gone Is Brenneman? by Guest
How gone is Brenneman? Is he just attending (quarterly??) board meetings? Does he still have an office at HQ?
Food Rebate by Quizkillingme
We now receive rebates from Quiznos based upon our past purchases from the warehouse.  Quiznos now seems to recognize they are negotiating for the benefit of the franchise community and the rebates are due to franchisees.   My question follows:   Does anyone believe Quiznos owes back rebate money to franchisees for the years they didn't give our money back to us?  I realize it's a legal question but would like some opinions here.
Food rebate by Guest
They are giving rebates on purchases but still charging a very substantial distribution fee for food and supplies they never actually touch. This is a very big number that they have calculated intot their cash flow so don't plan on seeing any of this or any other monies any time soon.
re: Food Rebate by Guest
Quizkillingme said: Does anyone believe Quiznos owes back rebate money to franchisees for the years they didn't give our money back to us? Absolutely without a doubt. They can call it ‘distribution fees’ or ‘markups’, I could care less. It is an added cost not mentioned in part of the contract or UFOC.
food rebate by Guest
Don't hold your breath!
Re: Open Quiznos at 4400 - And Falling by Guest
As a new franchisee in Canada I am very saddened to hear all of this negativity. I have poured everything that I have worked for my whole life into 2 franchises. Is Canada perceived as having such a difficult time also with making a profit. I am very very sad and I can only hope they turn this around. Does anyone here have an email address which with I can contact them to enquire more about this situation. It would be greatly appreciated. I am quite nauseated now. :(
Quiznos closings by Guest
Expert Quiznos ranter said that 600 plus stores have closed since Januray 1st. He backs up that claim by an article that claims that 150 Quiznos has closed this year. Let me see, your 600 plus closed stores is over four times the amount which you say proves that you are right. My five year old has more common sense than you.
More Quiznos Layoffs by Guest
The current assault on the Quiznos system by David Dino, Greg Brennenman and the The Dicks isn't just limited to franchisees. Dino recently layed off 20% of the corporate Quiznos staff as the "fastest contracting QSR" continues to downsize. Now I feel bad when anyone loses his/her job, however, I know for a fact that the attitude of the staff in Denver concerning franchisees was very poor. When I was there for "training" most treated me like some kind of low level employee rather than an investor who had invested 250k into the Quiznos system. They consistantly tried to convince me and other new franchisees that high food costs, unaccounted for ad budgets, and agressive couponing and giveaways was how ALL restaurant systems operated and that if I objected it was because I didn't understand how to operate a business. They tried to sell the idea that "Penny Profits" and sales were more important than restaurant profitability as the measure of franchisee success. I knew better and they knew better. Now they're feeling the pain they have subjected franchisees to for all these years. I take it back. I don't feel sorry for this group of Qtards. What goes around comes around and I hope they enjoy losing everything they have trying to survive on $250 a week.
Quiznos Food Rebate Check by Guest
I'm sending my Quiznos rebate check back to corporate and I encourage all franchise owners to do the same. I will ask that corporate executives buy some common sense with that money because they are severely lacking in it.
Sending Rebate Check Back by Marty
Not a bad idea, except it made my payroll. I don't work in the store. I have a strong manager who has worked for me in another business but I see all the points being made. Also, I think franchiees need to take an even stronger stand. How about if we all stop payment on our weekly royaltys and non advertising funds for a couple weeks. That might start to get someone in Denver's attention. Who else out there wants to fight these clowns. I joined TSFA but they move to slow and are to meek.
Plenty of Greed, Little Else At Quiznos by Guest
Common sense will always be in short supply in Denver. But if enough of you send the checks back maybe Quiznos will rehire some of those poor souls that they layed off on Friday. hahahahahahahahahahah. Forget it. Keep the checks, small as they are. Dino, The Dicks, and the rest of the Q-tards will just add whatever is sent back to the bottom line. Do you think those now pounding the pavement were given a few coupons in their final pay envelope?
Ranting Quiznos poster by Guest
This is the same guy who keeps saying that "X" number of Quiznos have closed this year and now we have 20% of Quiznos employees laid off. Throw out whatever number you like. Why not say 99% of Quiznos are unprofitable and 99% of Quiznos corporate employees are now working for free?
Re:Ranting Quiznos poster by maddog

From a registered member, who also is a Q owner .........

Q laid off 20% of their workforce on Friday. That's a fact!

How do I know ? I asked the consultant who replaced our local consultant, who was laid off.

Q has lost several hundred stores just this calendar year.

Estimated range is 600 - 900. And no, you will never get an exact answer from Denver.

Just drive around your city, and you are sure to see one or two boarded up.

 

20% Laid Off by Darnelle White
Darnelle White's picture

"Q laid off 20% of their workforce on Friday. That's a fact! How do I know ? I asked the consultant who replaced our local consultant, who was laid off." - Guest

Thank you.

I'm assuming "local consultant" is what the Quiznos system calls a field operations manager, an employee of the franchisor corporation who consults local franchises on operational issues. Is that correct?

WOW 20% by Guest
Did not know that corporate employed 20% of their workforce as "local consultants". Next thing we'll hear is the help desk was laid off and that amounted to 50% of the workforce.
Re: WOW 20% by Guest
Huh? No one said what you just said that 20% of the workforce are 'local consultants'. Let's elevate the discussion guys and gals.
Yes WOW 20% by Guest
No matter what the number of employees, no matter what the business, when a business cuts 20% of its workforce it's a pretty good indication that it's poorly run and that business aint good. When a business shuts down its training arm you can bet it's because there aint enough students. In the case of Quiznos, that would be new franchisees. When a business is basically giving its product away through deep discounts and coupons its to lower inventories - either because of poor sales or signing contracts to buy more than you need. Either way it indicates a major problem in how Quiznos is operated. That IPO that Brennenman talked about when he came onboard is looking more and more like a pipedream.
20% work force by John Doe
Sorry, A 20% cut in work force does not necessarily indicate a poorly run business. It could simply be fluctuations in the market. If they cut the training division completely, one must wonder what thought process took place to make that call. Are they assuming they will not sell any more franchises?
Re: 20% work force by maddog

Ex-zee wrote: "A 20% cut in work force does not necessarily indicate a poorly run business. It could simply be fluctuations in the market."

A 20% RIF in a day is a shockwave - given the fact that Q was not a bloated organization by any stretch.

It is indicative of the failure of the business model.

If "X" percent (pick a number) of the stores could not turn a profit under the model, it had to catch up with corporate at some point.

The sad part is throughout the decline, Q's attitude is "we have done no wrong ".

And on the Friday VM update, they will spin this event as improving operational efficiencies, to enhance store owners profits !

20% Of The Workforce Is History by Guest
And as franchisees we know that profitability is only a concern to Dino, Brennanman, and the The Dicks when it's corporate profitability. Franchisee profitability is not a consideration in anything Quiznos does. Using our money to generate giveaway coupons, cutting retail prices to the bone and trying to make them mandatory while simultaneously raising wholesale prices to franchisees, cutting quality to the point that we're selling meatballs made from chicken pressure washed off the bone. And then blaming franchisees when they can't survive the above; as well as the policy of putting Q's on top of each other so they're cannabalizing sales. No one has bothered to mention the IPO that Brannenman was touting when he joined Quiznos. Nor has anyone mentioned the Wall Street investors who invested in Q with the idea that they would make millions in taking the company public. Cutting staff to the bone is another trick by slick corporate fatcats like the Dicks to pump up the bottom line for a quarter or two.
Meatballs by Guest
I thought the meatballs were turkey based or are you implying that there are a bunch of chickens putting pressure on the turkeys to get the meat off their bone?
Chile by Guest
The "all beef" chile is made with turkey parts. The "all beef" meatballs are made from a paste made up of chicken parts that are pressure washed off the bone. Quiznos goes all out when it comes to quality. That's one way Dino and the Dicks look out for franchisee profitability. hahahahahahahahahaha
re: local consultant by Guest
Darnelle asks: I'm assuming "local consultant" is what the Quiznos system calls a field operations manager, an employee of the franchisor corporation who consults local franchises on operational issues. Is that correct? Darnelle, It is hard to say on that one. Quiznos has had many different names for their 'field operations managers' depending on what territory and what year: 1. Area Directors (started out as consultants as well) 2. Franchise consultants 3. Franchise field trainers 4. Franchise business leaders In my area, the 'field rep' changed quit often along with the title. John Q. Public
Quiznos Exposed Again by Guest
To the Qtard guest and Darnalle - looks like I was right again. Before you both go off half-cocked again please do a little research. I'm here to provide good, quality information, not write term papers for those too lazy or too in bed with quiznos to do anything other than post on this site. Oh and by the way - QU, Quiznos University, is no more. That's the group that pushed the Dicks agenda of "penney profits", agressive couponing, and discounts to franchisees. I guess you really don't need a training school when there's no one to train, eh? hahahahahahahahahahahahahahahaha
Prove Poster Is Wrong by Guest
Who says it's the same guy/gal? Me thinks thou protests too much. This poster obviously has some inside information. You seem like an insider as well. If you have something to say to debunk what the poster has written than please do so. If not don't waste everyone's time by spewing dribble.
Guests Just Flapping Jaws Unless They Can Provide Evidence by Darnelle White
Darnelle White's picture

For the few of us power readers that skim through the comment area, it confirms again that guest postings are the ones to ignore.

To our wacky thinking guest, who thinks that the obligation is on someone else to prove them wrong. Consider this . . .

Prove me wrong: John Kennedy was killed by secret conspirators that have never been caught.

Since they are anonymous, guests are particularly under scrutiny to provide evidence to almost anything they say.

The original poster stated they were a Quiznos franchise owner. That provides credibility when talking about their experience. It still is incumbent on that poster to provide credible evidence if they make claims for the franchisor's performance in lay-off percentage.

Any reasonable reader will want to know how a Maine franchisee (let's say for argument) knows that 20% of the staff in Denver was laid off. Are they estimating this from the way the voice bounces off the walls when they place a phone call to the support center because they are assuming this is obviously due to a lack of warm bodies to absorb the sound?

JFK was killed by LHO, who was working for Jack Ruby, by RichardSolomon
RichardSolomon's picture

who was Sam Giancana's man in Texas. The mob had paid Joe Kennedy a lot of money to get Bobby Kennedy off Jimmy Hoffa's back. Joe died within minutes of receiving the money, and Bobby never got clued in.

The hit on JFK was revenge for the Kennedys taking the mob's money and not delivering on their promise to "fix" Bobby.--

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


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
JFK Conspiracy by Darnelle White
Darnelle White's picture

I thought movie mogul Oliver Stone proved once and for all that the JFK assassination was actually a coup d' etat by VP Lyndon B. Johnson.

Inquiring minds want to know - was the mob in on the coup? And did the franchise industry play a part? Solomon will give us the real scoop to these hidden mysteries of history.

There was no coup. Kennedy took mob money and didn't deliver. by RichardSolomon
RichardSolomon's picture

End of story

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


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
Quiznos Guest Flapper by Guest
Quiznos guest flapper throws out comments about store closures, layoffs, to help him deal with the fact that he is a failed Quiznos operator. It makes him feel good to say that a thousand Quiznos have failed. Who knows, maybe he believes his own postings.
Hey TIF by Guest
Good to see you back in here again. attaboy!
Quiznos Layoffs by Guest
Spoken like a true Qtard
Nananananana by Guest
Hey you two, just remember: It takes one to know one. Qtard that is. Now can we get out of kindergarten?
More Empty Promises From Dino and Quiznos by Guest
Well, another week, another voice mail and more empty promises. Promises to not cut quality - how could you cut the quality anymore than you already have? Pressured washed chicken parts in the meatball isn't as low as you can go? Pressed ham, pressed turkey, turkey meat pepperoni, turkey chile, canned quality soups. Promises to increase franchisee profitablity - of course there was nothing about cutting food costs. Only a big cut will tell franchisees that Dino is serious about franchisee profitability. Until then the talk about franchisee profitability is just that, talk. David Dino is an accountant. He has no clue how to run a restaurant, how to develop product; but as an accountant he does understand that high costs are killing off Quiznos restaurants at a frightful rate. That makes him no better than the Dicks.
My God, man! Did you expect by RichardSolomon
RichardSolomon's picture

something different?--

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


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
Quiznos Truth Squad by Guest
No, but Dino can't be allowed to spew the lies with no rebuttal. Unchallenged lies soon become facts if told often enough and convincingly enough. Dino and Brennenman are born liars, the Dicks are convicted.
Quiznos vs Subway by Guest
Quiznos corp has made the HUGE mistake of competing against Subway, Jimmy Johns, etc. Our cheese and meat is fresher, cut daily and more expensive...theirs is processed and less expensive. We have 18 (that's right EIGHTEEN) dressings that we have to buy...they have 3 or 4. We have 10 different chips...they have 2 or 3 (I think). We carry 18 (that's right, EIGHTEEN) bottled drinks in our deli case...most Jimmy John's and Subways only sell fountain drinks and don't even have a deli case. We pay Muzac $46.30 every month for music while most Jimmy Johns and Subways just play an easy listening FM radio station with NO monthly charges. I can go on and on but I believe everyone gets the picture. The only comparison between Quiznos and Subway and Jimmy Johns is that we are all QSR's and sell subs. Quiznos corporate tries to compete with Subway while our cost of doing business is quite a bit higher then theirs is. On top of all this...Subway spends a lot more for advertising (cause they are so big that they can) and their marketing team is a lot SMARTER then Quiznos marketing team. Instead of coming up with some unique promotions or advertising, all they seem to do is what Subway does...not even considering the our increased cost of doing business. If anyone thinks that Quinzos is a QSR franchise, they are wrong. In reality...Quiznos is a Food Distribution business with FO's across the country not being partners, but rather....their CUSTOMERS. This could all be corrected but Quiznos Corp has NO intention of changing anything. They are making way too much money...most of which is ours and not our customers.
I likes the Quiznos by Guest
yall's foods is soo good I cant help but eat it all the times. Although i be puttin on all this weight, maybe if I loss it all yall can make me liek that subway guy and say how great stuff is for fat people and you can get more money. I just take some free samiches
Q's Substandard Food Quality by Guest
I don't brag about our quality anymore. In my opinion we're no better than Subway or JJ's. The only real difference I see is the price we pay Quiznos to serve substandard product. If I had wanted to serve a cheap sandwich with cheap product I would've bought a Subway.
Quiznos Vs. Subway by Guest
How could our food prices be higher and how could we carry so many dressings? I remember when Brenneman came on board and promised lower food costs, menu simplification, increased profitability, and a listening ear to franchisees concerns. Long story short is he either he didn't have the power to change things or did not have any intent on changing things from the beginning. Bottom line is that we are worse off now.
Open Quiznos Well Under 5000 by Guest
The approximate number of Quiznos open for business is 4400...and falling. That number, by the way, doesn't take into account the hundreds of additional stores that were churned by Q because of franchisees who were forced to walk away. This chain is dying and the promises don't work anymore. Mr. Dino, cut the costs of doing business to Subway and JJ's level and do it NOW if you want to save yourself, the chain, and the franchisees.
Well Said by Marty
I think my subject line says it all. Great comment.
Open Quiznos by Guest
Where do you gather the information about stores closed?
Open Quiznos Closed Quiznos by Guest
Check the story about the Quiznos lawsuit currently on the home page and that story has it at 4600. They're a little high and they're wrong about the direction. Q's are closing now because the tight credit and its own reputation have combined to end the churning. And no one in their right mind would buy one. Two more sources of revenue have disappeared for the Qtards.
My Reply by Guest
Deno says: 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. I say: Unity goes both ways. If systems argue, chances are one side isn't listening. Deno's answer to uniting franchisees is by increasing multi-unit franchise owners that are more receptive to the corporate message. I say: If more single unit operators were profitable, you would've had an increase in multi-unit ownership. Deno: "My whole career has been about great relationships with franchisees." I say: Deno, you have a lot of work to do before you will see great relationships with franchisees in this chain. Even though you stated in a letter you will never recognize the TSFA, you could change your mind and maybe the healing process will begin a little quicker. I believe the TSFA has more members than corporate cares to recognize. Everytime they screw up, we grow. John Q. Public
The TSFA Is Coming by Guest
And the more members we get the more worried Mr. Dino should get. The day of reckoning is coming and the light will shine down on you and the rest of the dogs..er..rats. Personally, I'm more interested in the documents, the emails, the correspondance, the backroom notes; all the incriminating evidence that will be uncovered during the discovery and eventual trial(s). And once one crook starts singing they'll all start singing. You my friend have been setup to take the fall. If you and Brennenman had any integrity you would be in contact with the TSFA legal team to provide information to help those who have been financially and emotionally destroyed by the Q. That is if either of you had any integrity.
TSFA Coming by Guest
The TSFA has been coming for about seven or eight years now. When are they going to arrive?
Re: TSFA Coming by maddog

Are you a dues paying, card carrying member of the TSFA?

Have you volunteered your time and efforts to the common cause?

Have you recruited other owners to join ?

If the answers are NO; then you have no right to be impatient.

If you answer YES, then pardon me.

To answer your original question, it is usually quiet before the storm ..........

Re TSFA by Guest
Yest to all of the above except no longer a member...You're pardoned
What Zees Do About Encroachment by Darnelle White
Darnelle White's picture
"The biggest problem with these stores right now is that they opened stores very close to each other and we are stealing sells from each other. I was doing fine until they opened another store near mine." - Q Zee

Franchisors like putting franchises close together. Franchisors are paid royalty on top line sales. If there are two stores next door to each other, store one may take a 40% cut in customers and revenues while store two also takes a 40% cut. But the two stores combined may net the franchisor 30% more in royalties on sales. That's why territory encroachment isn't an important issue for many franchisors but such a practice can be the kiss of death for individual franchise owners.

Question: Are Q Zees working to grow their independent franchisee association to demand that territorial rights be put into their agreements?

Many years ago KFC franchisees formed the KFC franchisee association to press for such rights. In the beginning, there was war with the corporate head office. Many lawsuits. In the end, the independent assocation negotiated a deal.

KFC retaurants now have territory rights. If I recall correctly, units are guaranteed no other KFC within 2 miles or so much population. Of course, multi-unit operators can put their stores as close as they want to their own units.

Franchise Advisory Councils, comprised of owners selected by the franchisor to act as a go-between, historically do not negotiate such contentious issues. It seems only independent franchisee associations have the hutzpah to negotiate such onery clauses on behalf of their members. 

Are Q franchisees banding together? How many members does the Toasted Subs Franchisee Association have? Is their association working with other associations for help?

Or are the majority of Q franchise owners unconcerned about matters of territory encroachment until it happens to them?

Re: What zees do about encroachment by maddog

Darnelle wrote: " Are Q franchisees banding together? How many members does the Toasted Subs Franchisee Association have? Is their association working with other associations for help?"

Q owners are banding together under the direction of the TSFA.

I don't know how many members the TSFA has, but suffice it to say, they have enuf for Q to take notice.

Trying to work issues with Q has been a fruitless exercise todate; hence the TSFA has filed grievance complaints in 3 state courts, soon to be 4 .... 5 .... 6 ......... until national class action status is achieved.

The "mandatory pricing" directive by Q has been instrumental in growing the membership ranks of the TSFA.

Franchisee Association TSFA by Guest
TSFA is the only association that is working on behalf of the Quiznos franchise owners. Join ASAP...without FO's banding together we don't have a chance. Ask TSFA about the various law suits that are filed by FO's trying to combat the unfair practices of the Quiznos corporation. You may have vital information that can help to make things right for you and the rest of us. Bonnie Brunet store #7881 Augusta Maine
More corporate BS by Guest
This is just more of the same corporate BS or window dressing. I am a franchisee and they (corporate) are trying to put me out of business. I can tell you that I am barely surviving, but only because I don't follow their rules anymore. I don't do the $5,$7, $9 anymore. I don't open until 9:00 PM (because i have no customers after 8:00). I don't buy my produce from their vendors. I'm not posting their latest give-away specials, etc etc. I've saved myself thousands of dollars as a result; this has allowed me to stay open....for the moment. I encourage all owners to do the same. Here is an idea for Quiznos: the biggest problem with these stores right now is that they opened stores very close to each other and we are stealing sells from each other. I was doing fine until they opened another store near mine, despite my begging them not to. Now they are allowing the weaker stores to go under until we have stores with large enough territories to survive : a type of "natural selection" . Instead of letting all these stores go under, they should create a "relocation program" that assists existing and failing store owners to relocate to a less "crowded" market at the expense of Quizno's. Corporate will eventually get it's money back in the way of increased royalties, increased kick-back on food sales, etc. I realize this may be too "long-term" for these short-sighted idiots, but it's worth a mention.
More Corporate BS by Guest
I agree with you, you need not listen to what Quiznos Corporate says to do, like open early and stay open late. The business model just does not work, if it did, they would have opened corporate stores. I thought it was ironic that a Quiznos employee once told me that employees of Quiznos are not allowed to buy franchises, what does that tell you? My advice to you, if you are losing money, or barely breaking even, consider closing your store, if you cannot sell it. If you are waiting for things to get better with Quiznos making the right decision to help franchise owners become profitable, forget it, because it won't happen. Quiznos has been running this ship into the ground for many years, last year over 700 stores closed, these are all stores and owners who were trained by Quiznos, there are many class action lawsuits, they are not even ranked in the top 500 franchises anymore(remember they were ranked in the top 10 about 4 or 5 years ago, that is when no-one knew anything about them). Quiznos is a bad concept, bad for the franchisee, and even bad for the customer, becuase the prices are still to high, and there is so much dissention, that the brand is not consistent from store to store becuase the franchise owners are miserable, and most don't care or want to care anymore. I hope this helps. I won't go to Quiznos anymore becuase I don't like the idea of how they treat their Partners(franchise owners) and I think their gimmick has lost its' luster.
A Way Out For Quiznos Franchisees On The Brink by Guest
For those Quiznos franchisees on the brink of losing it all. You can file a Chapter 7 if more than 50% of your debt is business debt. It sounds bad but the bottom line is that if you have no assets left, which many don't, you can keep your house and 401k and walk away from Quiznos, your landlord, the Q vendors and the rest of the parasites and buzzards that are sucking you dry. Odds are you can go back to your old profession and in a few months be living the American dream again, complete with a home, car, and credit, rather than the Q nightmare you're living now. Why make Q rich?
Quiznos Closing by Brett
We own a Quiznos in Denver Colorado and have never had a profitable month since we bought it... Its time to cut our loses. I have some questions could you e-mail me.. Brett In Denver ASonny1@aol.com
The Only Way Out ! by Guest
YEP, we had to do the same. We had no choice but to stop the bleeding and hemorraging. Never in my life would I ever think we would go bankrupt! We have always been careful with our credit, our credit was perfect until we got caught into the Q-NIGHTMARE. We are now beginning a "fresh" start. We like many other Quiznos zees hung on to guard our investment. We hung on too long in hopes things would get better. We wiped out our entire life savings, pulled equity from our house, maxed out our credit cards, borrowed from our 401k. We ran out of resources.
interview by Guest
Dave .. It seems that he dos not have clue about franchise profitability or discounting. Reducing the sandwich price is another way of discounting!!! Reduce prices for customer & decrease franchise owners profitability.
Reducing sandwich price by Guest
Market forces seem to be pushing fast-food marketers to the $1 and $5 value price point. Subway has their $5 foot-long. Q theirs. And now Arby's has jumped in with their sub, drink and fry $5 combo. Do you think that the marketplace will push to more value in 2009? Any thoughts on how to eliminate the $2 and $5 value point and jump straight to a $9 sandwich launching point to beef up franchisee profits?
Quiznos giveaway program by Guest
If Quiznos was serious in their belief that this maximum pricing scheme was the way to go, they should have a royalty reduction until this economy strengthens. Wait; that would make too much sense. They believe that shuttered stores are more important. Like our inept congress, these morons have no idea what to do. They don't have the kahunas to make tough meaningful changes to help the franchise community who is being killed by their lack of innovation and broken business model.
Re: Quiznos giveaway program by Guest
GREED is what it's all about!
Re: Reducing sandwich price by Guest
Guest wrote: "Any thoughts on how to eliminate the $2 and $5 value point and jump straight to a $9 sandwich launching point to beef up franchisee profits?" Sure - provide excellent guest experience, run a squeeky clean restaurant, make subs to spec. Now you can raise $2 to $2,50; $5 to $7.49 and $9 to $12.25. Most sales have a begin date & an end date, and all consumers accept that fact. You may loose a few of the bargain seekers, but your regulars will be happier, and your profits WILL increase. This isn't rocket science ...... !
When Excellence Isn't Good Enough by Guest
"provide excellent guest experience, run a squeeky clean restaurant, make subs to spec" Can you see a scenario in which customers take for granted all of those things and yet begin to question how many coins they have in their pocket?
Re: When Excellence Isn't Good Enough by maddog

Guest wrote: "Can you see a scenario in which customers take for granted all of those things and yet begin to question how many coins they have in their pocket?"

Sure I can.

All I was trying to say was, charging premium prices only works with providing exceptional service.

As a consumer, if a gas station provides clean restrooms, has windsheild cleaning supplies stocked at all times and has a friendly staff, I will overlook the fact their pricing is 5c/gal. more that the unkempt station down the road.

Price Points by Guest
"As a consumer, if a gas station provides clean restrooms, has windsheild cleaning supplies stocked at all times and has a friendly staff, I will overlook the fact their pricing is 5c/gal. more that the unkempt station down the road." Not anymore for me and not if it crosses the almighty $4 per gallon threshold.
Quiznos Gouges Franchisees by Guest
The whole price argument is moot if the price you're charging doesn't pay the bills and provide a PROFIT. If the costs of doing business as a Quiznos are too high to support the current prices that consumer will pay than something in the business model needs to change. Q raising prices to franchisees and then telling them to charge less may look good on corporate's bottom line but for franchisees it's a disaster. Quiznos could do plenty to lower franchisee's costs starting with the 35%+ food and paper cost. How about lowering the 12% franchisees are being gouged for every week for the franchise and advertising fees? How about "Chef" Zach coming up with a new and exciting sandwich? (ok, that one may be a little far fetched) How about the "chef" developing a sandwich that's new, exciting, and profitable?(hahahahahahahaha) How about giving the franchisees the kickback money from vendors? How about creating food and ad co-ops to get lower prices and higher quality? How about allowing franchisees to buy local produce and other products they can get cheaper through other sources? Unless a combination of suggestions above are implemented the idea of successful multi-unti Q franchisees or even a successful franchise system is a joke. Just like Dino and the rest of his Qtards.
In this world there are sheep and there are wolves. by RichardSolomon
RichardSolomon's picture

Quiznos is a perfect Sheep-Wolf business model. Wolves eat sheep.

Franchise investors can't distinguish between a wolf and a dog, so they sign contracts with wolves that grant permisssion for the wolves to eat them.

Since sheep were put here to be fleeced and eaten, why is anyone surprised or upset? When you order leg of lamb in a restaurant, do you in your tender and merciful heart give a damn that some sheep is walking around on three legs just so you can eat his fourth leg?

Why is obvious logic, based upon the natural cycles of creation, so upsetting to you.

Of course, had you invested in a sheep dog before you went in to play with the wolves, like any experienced and intelligent shepard would always do, you might not get eaten by the wolf. How is it that this escapes so many people with MBA degrees and twenty years corporate business experience?

Is the answer that corporate people are just Stepford Wife organization folks, able to do as they are told without thinking, and  eventually unable to think insightfully - mere Zombies in a real world?

GET A SHEEP DOG, YOU FRANWADS!!--

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


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
Richard by Guest
After being a Quiznos franchisee when there were only a few hundred locations, I can testify that this wolf was not always a wolf. This dog became a wolf after it was fed human flesh and decided it liked it. Don't pretend that this is forseeable. What was once good is now bad. No matter how much do diligence could have predicted this behavior unless you are of the belief that all franchisors are bad and this may be the case. Maybe it because all franchisors are wolves that you are able to make a living. I would love to hear your success stories litigating franchisors (or are you a wolf also?) You are no different.
I am indeed a wolf, and I represent either side in this fight. by RichardSolomon
RichardSolomon's picture

Victories are nothing to brag about. No one - no matter how great he may think he is - wins all his cases. You have to try a certain number of cases to have any credibility. I have represented angels and scoundrels with equal enthusiasm.

I don't publish what I publish out of any sense of pity for the ignorant. I publish what I publish in the (apparently forelorn) hope that the ignorant may become educated - something Michael Webster and Paul Steinberg have been preaching also in here for a very long time. Insisting upon remaining ignorant is Stupid. I hate stupidity, and freely insult all who think they can walk into a street fight environment and make it safely through the area with country club capabilities.

You are correct that I am not omniscient. But I do get most of them correctly sorted out - perhaps because I have been in this business for so many years and bring some insight to  the task.--

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


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
Richard by Guest
And you would represent a kidnapper, child rapist, murderer, etc. I for one would not brag about my lack of morals.
Resale price mandates $2/5/7/9 by Guest
without benefit of ANY reduction in COGS is killing the individual store owners. This company seems to have a death wish, as so many stores have closed this year (600+?), and many more will not survive the holiday winter months. I ran a spreadsheet model of how much of a sales increase would it take for the $2/5/7/9 pricing versus my regular menu pricing, JUST to achieve parity. Answer: A whopping 26.3% ....... !!! In this economic climate, that high of a foot count and sales increase is just NOT doable. Deno is no different than anyone else that sends the Friday VM weekly one way communications. He states Q has gone away from couponing? With the $2/5/7/9 "mandated" pricing, EVERY guest that walks in thru the door has a virtual coupon in hand! This company is at a major crossroad, and as long as store operators are forced to buy products from AFD (Q owned food distribution company), they will never realize the true COGS that can be obtained in a free, competitively bid marketplace.
Resale price madates $2/5/7/9 by Guest
This company is crashing and burning. Look at how many stores are going out of business from state to state. The entire east coast is a mess, Maine, New York, New Hampshire, Mass, New Jersey, Florida, Georgia. Look to the west, Michigan, Illinois. Look to the West California is a mess. Texas, New Mexico, Wisconsin, Nebraska and Vermont are other states where stores continue to close as well. This only means one thing, THE BUSINESS MODEL DOES NOT WORK FOR THE FRANCHISE OWNERS. I think the Attorney Generals of all these states should get together and see why Quiznos is forcing people of their states into bankruptcy, I think there is definately similiarities or traits that will be uncovered. Just a thought.
What do we think??? It's all just a bunch of the same PR/BS by Guest
And I don't mean Prime Rib here folk. Connecticut now lists 35 open stores, however, the largest sales volume store (and one of the first to ever open in the state) recently just shut their doors). It still shows up on the Q site though....wonder why?? I was up in the Hartford area and was in the mall where they're located....and it's closed. Now that makes a closing rate of 17 out of a max of 53 stores...do the math...and this is just in CT. Face it....these clowns are liars when it comes to reporting the truths about their franchise system. When you mandate a price ceiling and don't lower your C.O.G.S. it spells disaster...it's just a matter of time now. And BTW, get rid of the Q advertising banners on this site.....it's just perpetrating the problem. "Don't get into bed with the sandwich devil"
Blue MauMau Community: Marketplace of Ideas by Mr. Blue MauMau
Mr. Blue MauMau's picture
"get rid of the Q advertising banners on this site.....it's just perpetrating the problem." - Guest

We do not ban franchise thought here, whether it is a franchisor's postings or paid advertisement. I would remind our readers that Blue MauMau is not a consumer advocacy site where we ban advertising that do not meet our advocacy position.

This is a site that is dedicated to pull news from all sides to provide investors with as much information as possible to make an educated investment decision. This site is a marketplace, albeit one that isn't shy of insider articles that call a spade a spade.

Mr. Blue MauMau
Moderator

Blue Mau Mau Should Be Careful With The Q Devil by Guest
You let Quiznos become a major revenue source and eventually they'll be calling the shots on what can/can't be posted about them. It's their modus operendi in everything they do - hold the hammer and use it if they don't get what they want. Those moderating the site may not be influenced but the bean counters/owners certainly will be.
Apathy is the enemy by Mr. Blue MauMau
Mr. Blue MauMau's picture
Those are great reasons on why you may want to escalate your activity from posting comments to contribute news summary blogs that you think are important for franchise owners. Frankly, the death of Blue MauMau's inside scoops on franchise systems is not that any particular company buys out a blogger, a journalist or the publisher (fat chance!), but rather that franchise owners and insiders do not contribute content or call out when information is wrong. To contribute news summaries, you'll want to login (registration is free). Then click on the top green bar, Share Info> Blog the News to create a news clip of articles you find of interest.
No Free Speech For Franchisees by Guest
Sorry Mr Blue Mau Mau. I'd like to post under my own name but I know what happens to those who become known to Quiznos. Bob Baber was driven to suicide by the ruthless Quiznos legal team and the last TSFA President was pursued, hounded and eventually driven from the system. Free speech is a joke in the franchising world and I don't have the resources to fight a protracted legal battle against the Schadens and their bully boys. Blue Mau Mau provide a great service. It's a venue for getting the truth out about rogue franchisors like Quiznos, UPS, and Cuppy's Coffee. Those who read the site get the true franchisee side, the one that can't be said publicly. May you never be corrupted.
Franchisee Perspectives Highly Valued by Mr. Blue MauMau
Mr. Blue MauMau's picture
I understand. Many of our franchise owners register under a pseudonym to allow them the freedom to say what they think. Registration requires a name, any name, and an email address. The email address is not displayed to other members. Our dbase is encrypted. Should privacy laws that protect online forums one day change in this country so that courts demand that we MUST hand over an email address, Blue MauMau will not share it. (Note: Threats of terrorism and carnage posted on this site are the exception. It's a sad comment on the state of affairs when I have to write such a caveat.)
Re: Registration by Guest
Thanks Mr.BMM. You convinced me; I will register today and my user name will be XXXXXX !
Let Q advertise here ...... by Guest
..... all the balanced reporting on this site will put everything in perspective for the new potential buyer.
Is there 5,000 Quiznos? by Barbara Jorgensen
Barbara Jorgensen's picture

I keep reading there are less. Who knows the actual numbers?

The encroachment problems? I keep reading the FDD is negotiable. I haven't read any stories where the zees have ever got their way when they try to negotiate anything. If there are zees out there who negoiated anything with Q I am sure there are many who will love to hear about it.

On the new FDD the franchise we were involved was started by Rick Schaden and other Q people. It now says they can open another club even if it is right next to you. This was not written in the 2006 UFOC. In fact Rick Schaden's name is not mentioned on the 2006 UFOC.

It boils down to it doesn't matter what zors say. It is what is written in their disclosures. (FDD) In many states they require up to date information if it affects your decision to sign or not to sign. In fact there are states that require quarterly updates for new franchise wannabees. If something significant happens in a month the zor is required to disclose it. ANYTHING that influences your decision to sign or not to sign.

Re: Is there 5,000 Quiznos? by maddog

Who the heck really knows ......... ?

They are closing at such a fast clip, that even Q cannot keep track of how many they have !

It has been widely reported that stores that have been closed for weeks are still listed on Q's website.

Do not rely on their website. by Barbara Jorgensen
Barbara Jorgensen's picture

Do your own investigation. People wake up.

I identify with your feelings. I got caught up with another of the Q people scams. We go into business trusting and go out the opposite. Their all the same people. May they go out with what they deserve. No respect, no money and the suffering they have caused all of us.

Now the advertising says 4,000+ by Barbara Jorgensen
Barbara Jorgensen's picture
What the hell is going on? 5,000 or 4,000? Will they make up their mind? Did they loose 1000 stores in a matter of a few hours. Holy smokes!
Dino Naive by Guest
600+ stores have closed since January 1. That gets Q well below 5,000. The chain is in serious trouble or Dino wouldn't have poured the "whine" in this interview. He sounds like a dissed school girl. The bottom line is that Dino is asking franchisees who continue to get the short end on a daily business to forget about the high prices, the lost vendor kickbacks, the heavy handed tactics, the mandated pricing, the mandated delivery, the encroachment, and the churning for the "good of the brand." Forget it. Quiznos made 25 million dollars last year and 1,000 franchisees had to close their doors and/or walk away. Either the Dicks, Brennenman, and Dino come to the table with meaningful changes to save our businesses or we'll all go down together - and it will be on Q corporate's head.
Facts of Life by Guest
All sources show that the number of stores continue an annual climb for Quiznos. The rate of growth isn't the same as years ago when the chain was much smaller, but given the current size of the chain, how can it be? Where did you get that 600+ stores (12%) have closed since January 1? Isn't 10%+ failure rate per year average for restaurants? Fast-food failure most likely is higher. Since Q is a franchise system and royalties have to be paid, you would hope that the success rate of stores would be hovering at least at the rate of the industry average. On the other side of the argument, the franchise owners are people with little or no industry experience. It can be argued that these small single-unit mom & pop owners have been lifted to the level of industry success rates. Major shareholders are no doubt thrilled that Quiznos Corp is making more money during difficult economic times. In corporate America, that's a good thing. If the company were public, the market would reward such leadership.
Re: Facts of life by maddog

Guest wrote: "Major shareholders are no doubt thrilled that Quiznos Corp is making more money during difficult economic times. In corporate America, that's a good thing. If the company were public, the market would reward such leadership."

Guest - you make some good points, even though they are not what the individual store owners want to hear ..............

As for the number of store closures, we may not know the exact number, but we can be pretty sure the growth rate is negative for this year.600+ closures is a good guestimate.

Q's strategy of making more money, while their customers (franchise owners) go broke is unsustainable in the mid-term.

At a minimum, this will stall new store sales; much more so than has already happened.

Morale at HQ is in the tank, with RIF's, paycuts, constant news of store closures.

Morale of FO's is in the gutter, with mass rebellion against the low mandated resale prices ($2/5/7/9)

Q hides behind their extremely one sided FA which serves to protect them; but I predict that FA will also cause their downfall, as when presented with the big picture, judges will look at that FA with a different lens.