Quiznos New CEO Dave Deno Speaks

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.

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.

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.

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.

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.

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.

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.

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