Quiznos to Reduce Sub Prices, Offer Free Sandwiches
HEARD ON THE STREET – Rumor has it that Quiznos franchise owners, many struggling in even a good economy to reach profitability, are grumbling that the head office is requiring a significant decrease in the price of what store owners can charge for many sub sandwiches. Not only does that mean less margins on their most profitable items but prices are also coming down without also reducing food costs. For example, the large premium steak subs will go from $9.99 to $7.49. Yet cost structures for the shop and sandwiches will remain roughly the same.
"Na-ah," says the head office. In local marketing meetings, Quiznos has argued with owners that the chain actually is reducing costs by slightly trimming meat portions for the cheaper sandwiches. Its master franchise in Canada pioneered the reduced prices and saw an increase in customers. Some franchise owners reply that the increase in customers did not last long and wasn't worth the erosion in price. Once cut, it is anticipated that sub sandwich prices will take considerable time to bring back.
Bringing its sandwich prices more in line with the competition is a sign that Quiznos is trying to maintain market share. Domino's Pizza and Arby's have recently entered this sector with their under $5 toasted sub sandwiches.
In January, the sub chain plans to blitz the market with a buy one sandwich get one free coupon. Franchise owners need to mail in the coupon, and the store owners will be paid $0.75 per coupon, up to $300 when Quiznos Corp. gets around to processing those rebates.
It's a tough market out there.


A friend's child works at a quiznos and I can tell you that they are told to cut back on the quantity of ingredients on the product when a coupon is presented. They must short the meats and the cheese. The owners have video cameras watching the employees work to make sure that they are not giving the full amount of product. Great way to get a introduction to the product.
This has been going on for years and not just because of a bad economy.
Work endless hours for $35,000 and have no benefits and no life with your family. What a deal. You can't be serious.
If less than 10% are in the black that means they are taking advantage of their zees. Give me a break. Your zees are working many hours while you get to take advantage of the hard working people of our great country. LOL
Guest writes: "I know first hand that this strategy was successful in Canada over a long period of time. It was first tested in one region, than rolled out to all Canadian stores. Both the revenue and profitability improved dramatically across the board. I no longer own any stores, but I would be taking a hard look at this before I dismissed it out of hand."
So where is the management study that supports your view?
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
t this very moment, BMM has a cover story about another zee who stopped paying royalties but kept using the trade dress.
Long story short:
You can't use the brand name and trade dress and other intellectual property of the franchisor unless you are paying your royalties.
Not what you want to hear, but the law is very clear on this point.
If you are serious about taking action, there are several law firms which have experience dealing with this type of situation, and one well-known firm in New Jersey which has litigated against Quizno's for years. There is also the franchisee association.
You have options, but a royalty strike is a bad idea even when the franchisor is not living up to its obligations.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
If you wanted to persuade your local politician that allowing royalty strikes was a necessary feature of franchise life, then ...
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"