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Quiznos

October 24, 2023

Quiz Holdings, LLC, doing business as Quiznos, is an American franchised fast-food restaurant based in Denver that specializes in offering toasted submarine sandwiches. It was founded in 1981 by Jimmy Lambatos and sold to Rick and Richard Schaden ten years later. It then grew to nearly 5,000 restaurants; by 2013, Quiznos was the second-largest submarine sandwich shop chain in North America, behind Subway.[5] It filed for bankruptcy in 2014; by 2016, it had dropped to ninth place,[6] and the number of Quiznos locations in the United States fell from a 2007 high of 4,700 to just 400 a decade later.[7][8]

Quiz Holdings, LLC
Quiznos
TypePrivate
IndustryRestaurants
GenreFast food
Founded1981; 42 years ago (1981)
FounderJimmy Lambatos
Headquarters
Denver, Colorado
,
U.S.
Number of locations
  • 176 (United States)
  • 183 (International)
  • 359 (Total)
[1][2]
Area served
North America, Europe, South America, Middle East, Asia
Key people
Tim Casey (CEO)[3]
ProductsSubmarine sandwiches, Salads, other food products
RevenueUS$170 million (2017)[4]
OwnerHigh Bluff Capital Partners
ParentREGO Restaurant Group
Websitequiznos.com

History Edit

Early history Edit

 
The first Quiznos Subs restaurant

The first Quiznos restaurant was opened in Denver, Colorado, in 1981, by founder Jimmy Lambatos and his partner, Todd Disner. Lambatos was an experienced chef, having worked as an executive chef for the Colorado Mine Co. Steakhouse and founded the Italian restaurant Footers in 1978.

The first location was at the corner of 13th and Grant Streets in the Capitol Hill neighborhood of the city; it featured special baguette-style bread, special dressings and unique recipes.[9] Lambatos said of his decision to toast the submarine sandwiches at the first Quiznos that, "it's a signature type of thing. Heating anything brings out the flavors in food products."[10][11] In addition to submarine sandwiches, the menu included salads, soups, and desserts.[12][13]

Expansion Edit

 
■ Countries with current[when?] Quiznos operations

In 1983, the restaurant started offering franchises to facilitate expansion,[14][15] under the name Quiznos American, Inc. By 1987, 12 Quiznos restaurant locations were operating in the United States. In the same year, Rick Schaden, at the age of 23, and his father, aviation attorney Richard Schaden, opened their first Quiznos franchise in a Boulder, Colorado, shopping center. They opened three additional restaurants before purchasing the 18-restaurant chain from the founders in January 1991 and renamed it the Quiznos Franchise Corp. Rick Schaden became the president, and then CEO, of Quiznos after the purchase.

Quiznos was taken public in February 1994, with an initial public offering of one million shares of stock at $5 per share, resulting in a $4.4 million yield. By the end of 1995, Quiznos had 103 different locations.[9][16][17][18][19]

In 1997, Quiznos became the number-three submarine sandwich franchise in the world, with 278 locations in the U.S. and Puerto Rico. The company again went private in June 2001.[19] In 2005, the company partnered with Ray Wilson to open a new chain of fitness clubs called 123 Fit.[18] At its peak in 2007, there were more than 5,000 Quiznos franchise locations.[20][21]

Until 2005, The Coca-Cola Company was the primary soft drink supplier for the franchise. In 2005, Coca-Cola signed an exclusive agreement to provide soft drinks to the competing Subway franchise; Quiznos signed an exclusive deal with PepsiCo (except in Canada and on college campuses that have exclusive deals with Coca-Cola) and Dr Pepper Snapple Group (to serve Dr Pepper).[22] In 2019 Quiznos switched back to Coca-Cola products, ending its 14-year relationship with Pepsi.[23][24]

International expansion Edit

The first location in Canada (and outside of the United States) opened in Vancouver in 1996.[25]

In 1998, Quiznos Canada acquired the master franchise rights to Quiznos restaurants in Canada, as well as the master rights in the United Kingdom in 1999.[citation needed] Glenvista Enterprises then acquired the rights for several states in Australia.[citation needed] KMN USA LLC acquired the franchise rights for Japan, opening its first location in early 1999.[citation needed]

The first European location opened in 2001 in Peterborough in the United Kingdom.[26]

In 2002, Wendy's acquired the rights to the brand for franchises in Australia, and later in New Zealand, but was unsuccessful in launching the chain in either country.[27] Quiznos opened a handful of Australian locations until in 2007 they were shut down by the Australian Competition and Consumer Commission for providing fraudulent information to their franchisees. [28]The first location in Mexico opened in Monterrey in 2002.[29]

 
One of the first Quiznos branches in the Philippines

In 2010 the chain said it planned to expand, opening locations in over 40 countries and territories, including Europe, the Middle East, Southeast Asia and Central and South America by 2012.[30]

The first location in India opened in Hyderabad in 2011,[31] followed by the first location in the Philippines opened in 2012.[32]

In July 2013, the company said it planned to expand into Russia, where it is looking to open about 500 stores.[33] A November 2013 article reported that, "Following its most recent international successes in Mexico, Russia, and the United Arab Emirates, Quiznos will bring toasted sandwiches to Indonesia with the signature of PT Quiznosindo as the brand’s newest franchisor. The group, led by Tan Po Lian, plans to open 100 units in Indonesia over the next 10 years...Expansion into Singapore, South Korea, the Philippines, and Indonesia is part of Quiznos’ continued international development plan to open more than 1,000 international stores in more than 40 countries by 2020."[34]

In 2013, Quiznos opened its first two locations in Russia during the same weekend in St. Petersburg.[35] In 2014, Quiznos opened locations in Iraq and Pakistan.[36]

Quiznos opened its first Taiwan location in Taipei[37][38][39] and also its first United Arab Emirates location in Abu Dhabi[40][41] in September 2014. Quiznos exited the Taiwan market in July 2018 based on a post on the Quiznostaiwan Facebook page.

Quiznos also operated restaurants across Ireland, operated by Supermac's. Today all of these have been replaced by Supersubs and the only remaining Quiznos is located in Dublin.[42]

Restructuring Edit

Between 2007 and 2009, 1,000 Quiznos stores in the United States closed.[43] After the closure of around 2,000 restaurants during the Great Recession, a majority stake in the company was purchased by Avenue Capital Group of New York in January 2012. In the purchase, about one-third of the company's $900 million debt was eliminated, and about $150 million in cash was added to the company's balance sheet."[21][44] Avenue Capital Group brought on turnaround specialist Harsha V. Agadi as Quiznos executive chairman.[45] They also brought on Stuart Mathis as CEO, the former president of The UPS Store, who said that the company would try to counteract shrinking sales by promoting the quality of its food.[46]

Bankruptcy Edit

On March 14, 2014, Quiznos filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Colorado. Quiznos said it would continue operating while it restructured its debt and made operational improvements.[47][48] Quiznos emerged from bankruptcy on June 30, 2014, having reduced its debt by approximately $400 million.[49]

Post-bankruptcy Edit

On December 1, 2015, Quiznos opened a concept restaurant called Quiznos Grill,[50] hoping to re-brand its products and increase menu offerings. Initial reviews of this restaurant highlighted the high price (US$20) once items were added to the sandwich (vegetables, cheese, etc.) or meal (chips, drinks, etc.). In late 2016, the Quiznos Grill concept was abandoned and relaunched as Zeps Epiq Sandwiches. Some of the Quiznos Grill sandwiches remained on the menu, while vegetarian choices, salads, all-day breakfasts, and loaded tater tots were added.[51]

On June 11, 2018, Quiznos announced that it had been acquired by California-based High Bluff Capital Partners. The chain did not move its headquarters.[2] The company's REGO Restaurant Group announced a new prototype in 2021,[52] the first of which opened in Hobbs, New Mexico.[53] The company's new Qube format, pre-fab drive-thru units, fit on smaller parcels, can have better unit economics than traditional brick-and-mortar restaurants, and are cheaper and faster to build.[54]

As of March 31, 2022, there were 176 Quiznos restaurants in the United States[55] and around 200 in 30-plus countries.[56]

Advertising Edit

The company's first major advertising push was a successful advertising campaign during the 2002 Super Bowl. Early TV spots advertised the innovation of toasting sandwiches, as compared to the inventor of pants (humorously contrasted with men wearing bushes).[57] One commercial in 2003 depicted a man (played by Jim Parsons) who had been "raised by wolves" by suckling at a mother wolf's teat.[58] Other promotions include an early 2004 campaign featuring bizarre, rodent-like, singing creatures called Spongmonkeys, edited by Joel Veitch,[59] as well as a series of Quiznos commercials in Canada featuring hockey commentator Don Cherry.[60] In 2005, Quiznos launched a campaign featuring Baby Bob.[61]

In June 2006, Quiznos revealed its new slogan: "Eat Up."[62] Ads nationwide feature a Quiznos sub with steam emanating from it with the tagline, "Mmmm... toasty." Actor Michael Clarke Duncan formerly provided the voiceover for all Quiznos commercials.[63][64] On September 18, 2006, Quiznos launched the most aggressive advertising campaign aimed at Subway. Dubbed the "Prime Rib Cheesesteak Challenge," customers were asked to compare the brand new Prime Rib Cheesesteak against Subway's Cheesesteak sandwich. The claim is that the Prime Rib Cheesesteak has twice the meat of Subway's Cheesesteak. If the customers are not satisfied, then they can fill out a form, mail the form along with their receipt, and they will receive a coupon for a free sandwich.[65][66] In subsequent advertisements, Quiznos was shown competing with the fictional "Wrong Way" restaurant based on competing restaurants.[67]

In 2016, the company launched their mobile based loyalty program.[68] This app was aimed at rewarding Quiznos' most loyal customers and to gather customer feedback to improve product and operations.

Mascots Edit

In 2004, Quiznos started using fuzzy-looking creatures called the Spongmonkeys (which were designed by Joel Veitch) in their advertising commercials. One of them plays a guitar, and the other sings a song called "We Love the Subs", in an apparent and shorter spoof of their original song, "We Like the Moon". Several commercials with the Spongmonkeys were released, including ones about rejoice and coupons. However after a few months, Quiznos discontinued airing the commercials.[citation needed]

On July 17, 2023, Quiznos announced the return of the Spongmonkeys after almost two decades with a new advertisement (again created and voiced by Veitch) in which they go on a road trip, singing about "the gas prices and public restrooms and the creepy billboards".[69] The new campaign comes as part of Quiznos' effort to expand again after their decline in the 2010s.[70]

Lawsuits and controversies Edit

Quiznos has been the target of several lawsuits related to its treatment of franchisees, including lawsuits in New Jersey and Wisconsin.[71] It has faced more lawsuits from franchisees than bigger chains, such as McDonald's, Burger King, Wendy's, and even its sandwich competitors Subway and Blimpie, according to an analysis by the legal research firm Thomson West. In February 2007, Quiznos franchisees filed a lawsuit seeking class-action status in Michigan.[71] One lawsuit (filed in New Jersey and seeking class-action status) said that the astounding growth record of Quiznos was merely a mirage. In 2003 and 2004, Quiznos said it sold 234 "trade areas" in the state of New Jersey to franchisees, collecting the $25,000 franchisee fee, but none of these locations ever opened according to the lawsuit.[71] Three years after handing over her check for the fee, Elisa Whitehall said that she had yet to open a Quiznos in the location she bought and that Quiznos refused to return the fee.[71]

One lawsuit cited a memorandum drafted by a Quiznos lawyer in 2003 that stated, "40 percent of Quiznos units are not breaking even," a fact that prospective franchisees say they were never told.[71] The United States Small Business Administration said 23.4 percent of Quiznos franchises with SBA loans failed. In contrast, Subway had a 4.8 percent failure rate.[43][72]

As a single example of an unprofitable franchise, Fredrick N. Westerfield was running three Quiznos in Wisconsin. After spending $14,000 in personal savings to keep the stores running, he realized he had a debt of $750,000. He closed all his stores in 2005. "Customers used to come into the store and say to me, 'You must be rolling in the money,'" recalled Mr. Westerfield. "If they only knew."[71]

In 2002, the Seattle Times reported that the company initially ignored the plight of a Quiznos employee who took over operations of one Quiznos store after the true owner abandoned it.[73] Months later, the store was closed.[74] In June 2004, the Quiznos at Downtown Crossing, Boston, was at the center of a hepatitis scare.[75]

In 2006, Quiznos sent letters to 300 franchises saying mystery shoppers would be coming to test their services. The company sued franchise owners Richard Piotrowski and Ellen Blickman for not putting enough meat in a prime rib sandwich. Piotrowski and Blickman countersued and won the lawsuit in 2009. Judge Morris Hoffman called the meat-weighing exercise and subsequent termination letters a "charade" aimed at bolstering a national ad campaign against rival Subway.[76][77]

On November 27, 2006, Bhupinder Baber, franchise owner of two Quiznos locations in Long Beach, California died by suicide after a legal battle with the company.[78] In his suicide note, Baber said that the way he was treated by Quiznos drove him to suicide.[79] The Toasted Subs Franchisee Association (TSFA), a group of franchisees, posted Baber's suicide note on its website, and intended to raise money for Baber's family. Quiznos attempted to terminate the TSFA's franchises.[80] The TSFA in turn filed an injunction on December 15, 2006, in the District Court of Colorado.[81] A 2014 article in the Long Beach Post suggested that the factors that contributed to Baber's suicide also led to the parent company's bankruptcy in 2014.[82]

As of July 1, 2010, Quiznos was close to reaching a settlement over the multiyear class-action lawsuit that covers nearly 10,000 of its current and former franchisees. The case comprises four separate class-action lawsuits dating back to 2006 which consolidated in 2009 — involved allegations by attorneys for franchisees that Quiznos Franchise Co. LLC and other entities with ownership or control of the Quiznos chain had violated U.S. racketeering and corruption statutes. Also at issue was the chain's supply chain and food costs, marketing and advertising funds, and disputes among franchisees that agreed to, but did not open, locations and whether royalties are owed. Quiznos denied all claims made in the lawsuits and the settlement agreement involves no finding or admission of liability, nonetheless the cost to Quiznos has been estimated from $100 to $200 million while also forcing it to implement a new business plan "which puts more support into its franchisees". [83][84][82]

See also Edit

References Edit

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External links Edit

  • Official website


October 24, 2023
quiznos, quiz, holdings, doing, business, american, franchised, fast, food, restaurant, based, denver, that, specializes, offering, toasted, submarine, sandwiches, founded, 1981, jimmy, lambatos, sold, rick, richard, schaden, years, later, then, grew, nearly, . Quiz Holdings LLC doing business as Quiznos is an American franchised fast food restaurant based in Denver that specializes in offering toasted submarine sandwiches It was founded in 1981 by Jimmy Lambatos and sold to Rick and Richard Schaden ten years later It then grew to nearly 5 000 restaurants by 2013 Quiznos was the second largest submarine sandwich shop chain in North America behind Subway 5 It filed for bankruptcy in 2014 by 2016 it had dropped to ninth place 6 and the number of Quiznos locations in the United States fell from a 2007 high of 4 700 to just 400 a decade later 7 8 Quiz Holdings LLCTrade nameQuiznosTypePrivateIndustryRestaurantsGenreFast foodFounded1981 42 years ago 1981 FounderJimmy LambatosHeadquartersDenver Colorado U S Number of locations176 United States 183 International 359 Total 1 2 Area servedNorth America Europe South America Middle East AsiaKey peopleTim Casey CEO 3 ProductsSubmarine sandwiches Salads other food productsRevenueUS 170 million 2017 4 OwnerHigh Bluff Capital PartnersParentREGO Restaurant GroupWebsitequiznos wbr com Contents 1 History 1 1 Early history 1 2 Expansion 1 3 International expansion 1 4 Restructuring 1 5 Bankruptcy 1 6 Post bankruptcy 2 Advertising 2 1 Mascots 3 Lawsuits and controversies 4 See also 5 References 6 External linksHistory EditEarly history Edit nbsp The first Quiznos Subs restaurantThe first Quiznos restaurant was opened in Denver Colorado in 1981 by founder Jimmy Lambatos and his partner Todd Disner Lambatos was an experienced chef having worked as an executive chef for the Colorado Mine Co Steakhouse and founded the Italian restaurant Footers in 1978 The first location was at the corner of 13th and Grant Streets in the Capitol Hill neighborhood of the city it featured special baguette style bread special dressings and unique recipes 9 Lambatos said of his decision to toast the submarine sandwiches at the first Quiznos that it s a signature type of thing Heating anything brings out the flavors in food products 10 11 In addition to submarine sandwiches the menu included salads soups and desserts 12 13 Expansion Edit nbsp Countries with current when Quiznos operationsIn 1983 the restaurant started offering franchises to facilitate expansion 14 15 under the name Quiznos American Inc By 1987 12 Quiznos restaurant locations were operating in the United States In the same year Rick Schaden at the age of 23 and his father aviation attorney Richard Schaden opened their first Quiznos franchise in a Boulder Colorado shopping center They opened three additional restaurants before purchasing the 18 restaurant chain from the founders in January 1991 and renamed it the Quiznos Franchise Corp Rick Schaden became the president and then CEO of Quiznos after the purchase Quiznos was taken public in February 1994 with an initial public offering of one million shares of stock at 5 per share resulting in a 4 4 million yield By the end of 1995 Quiznos had 103 different locations 9 16 17 18 19 In 1997 Quiznos became the number three submarine sandwich franchise in the world with 278 locations in the U S and Puerto Rico The company again went private in June 2001 19 In 2005 the company partnered with Ray Wilson to open a new chain of fitness clubs called 123 Fit 18 At its peak in 2007 there were more than 5 000 Quiznos franchise locations 20 21 Until 2005 The Coca Cola Company was the primary soft drink supplier for the franchise In 2005 Coca Cola signed an exclusive agreement to provide soft drinks to the competing Subway franchise Quiznos signed an exclusive deal with PepsiCo except in Canada and on college campuses that have exclusive deals with Coca Cola and Dr Pepper Snapple Group to serve Dr Pepper 22 In 2019 Quiznos switched back to Coca Cola products ending its 14 year relationship with Pepsi 23 24 International expansion Edit The first location in Canada and outside of the United States opened in Vancouver in 1996 25 In 1998 Quiznos Canada acquired the master franchise rights to Quiznos restaurants in Canada as well as the master rights in the United Kingdom in 1999 citation needed Glenvista Enterprises then acquired the rights for several states in Australia citation needed KMN USA LLC acquired the franchise rights for Japan opening its first location in early 1999 citation needed The first European location opened in 2001 in Peterborough in the United Kingdom 26 In 2002 Wendy s acquired the rights to the brand for franchises in Australia and later in New Zealand but was unsuccessful in launching the chain in either country 27 Quiznos opened a handful of Australian locations until in 2007 they were shut down by the Australian Competition and Consumer Commission for providing fraudulent information to their franchisees 28 The first location in Mexico opened in Monterrey in 2002 29 nbsp One of the first Quiznos branches in the PhilippinesIn 2010 the chain said it planned to expand opening locations in over 40 countries and territories including Europe the Middle East Southeast Asia and Central and South America by 2012 30 The first location in India opened in Hyderabad in 2011 31 followed by the first location in the Philippines opened in 2012 32 In July 2013 the company said it planned to expand into Russia where it is looking to open about 500 stores 33 A November 2013 article reported that Following its most recent international successes in Mexico Russia and the United Arab Emirates Quiznos will bring toasted sandwiches to Indonesia with the signature of PT Quiznosindo as the brand s newest franchisor The group led by Tan Po Lian plans to open 100 units in Indonesia over the next 10 years Expansion into Singapore South Korea the Philippines and Indonesia is part of Quiznos continued international development plan to open more than 1 000 international stores in more than 40 countries by 2020 34 In 2013 Quiznos opened its first two locations in Russia during the same weekend in St Petersburg 35 In 2014 Quiznos opened locations in Iraq and Pakistan 36 Quiznos opened its first Taiwan location in Taipei 37 38 39 and also its first United Arab Emirates location in Abu Dhabi 40 41 in September 2014 Quiznos exited the Taiwan market in July 2018 based on a post on the Quiznostaiwan Facebook page Quiznos also operated restaurants across Ireland operated by Supermac s Today all of these have been replaced by Supersubs and the only remaining Quiznos is located in Dublin 42 Restructuring Edit Between 2007 and 2009 1 000 Quiznos stores in the United States closed 43 After the closure of around 2 000 restaurants during the Great Recession a majority stake in the company was purchased by Avenue Capital Group of New York in January 2012 In the purchase about one third of the company s 900 million debt was eliminated and about 150 million in cash was added to the company s balance sheet 21 44 Avenue Capital Group brought on turnaround specialist Harsha V Agadi as Quiznos executive chairman 45 They also brought on Stuart Mathis as CEO the former president of The UPS Store who said that the company would try to counteract shrinking sales by promoting the quality of its food 46 Bankruptcy Edit On March 14 2014 Quiznos filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Colorado Quiznos said it would continue operating while it restructured its debt and made operational improvements 47 48 Quiznos emerged from bankruptcy on June 30 2014 having reduced its debt by approximately 400 million 49 Post bankruptcy Edit On December 1 2015 Quiznos opened a concept restaurant called Quiznos Grill 50 hoping to re brand its products and increase menu offerings Initial reviews of this restaurant highlighted the high price US 20 once items were added to the sandwich vegetables cheese etc or meal chips drinks etc In late 2016 the Quiznos Grill concept was abandoned and relaunched as Zeps Epiq Sandwiches Some of the Quiznos Grill sandwiches remained on the menu while vegetarian choices salads all day breakfasts and loaded tater tots were added 51 On June 11 2018 Quiznos announced that it had been acquired by California based High Bluff Capital Partners The chain did not move its headquarters 2 The company s REGO Restaurant Group announced a new prototype in 2021 52 the first of which opened in Hobbs New Mexico 53 The company s new Qube format pre fab drive thru units fit on smaller parcels can have better unit economics than traditional brick and mortar restaurants and are cheaper and faster to build 54 As of March 31 2022 there were 176 Quiznos restaurants in the United States 55 and around 200 in 30 plus countries 56 Advertising EditThe company s first major advertising push was a successful advertising campaign during the 2002 Super Bowl Early TV spots advertised the innovation of toasting sandwiches as compared to the inventor of pants humorously contrasted with men wearing bushes 57 One commercial in 2003 depicted a man played by Jim Parsons who had been raised by wolves by suckling at a mother wolf s teat 58 Other promotions include an early 2004 campaign featuring bizarre rodent like singing creatures called Spongmonkeys edited by Joel Veitch 59 as well as a series of Quiznos commercials in Canada featuring hockey commentator Don Cherry 60 In 2005 Quiznos launched a campaign featuring Baby Bob 61 In June 2006 Quiznos revealed its new slogan Eat Up 62 Ads nationwide feature a Quiznos sub with steam emanating from it with the tagline Mmmm toasty Actor Michael Clarke Duncan formerly provided the voiceover for all Quiznos commercials 63 64 On September 18 2006 Quiznos launched the most aggressive advertising campaign aimed at Subway Dubbed the Prime Rib Cheesesteak Challenge customers were asked to compare the brand new Prime Rib Cheesesteak against Subway s Cheesesteak sandwich The claim is that the Prime Rib Cheesesteak has twice the meat of Subway s Cheesesteak If the customers are not satisfied then they can fill out a form mail the form along with their receipt and they will receive a coupon for a free sandwich 65 66 In subsequent advertisements Quiznos was shown competing with the fictional Wrong Way restaurant based on competing restaurants 67 In 2016 the company launched their mobile based loyalty program 68 This app was aimed at rewarding Quiznos most loyal customers and to gather customer feedback to improve product and operations Mascots Edit In 2004 Quiznos started using fuzzy looking creatures called the Spongmonkeys which were designed by Joel Veitch in their advertising commercials One of them plays a guitar and the other sings a song called We Love the Subs in an apparent and shorter spoof of their original song We Like the Moon Several commercials with the Spongmonkeys were released including ones about rejoice and coupons However after a few months Quiznos discontinued airing the commercials citation needed On July 17 2023 Quiznos announced the return of the Spongmonkeys after almost two decades with a new advertisement again created and voiced by Veitch in which they go on a road trip singing about the gas prices and public restrooms and the creepy billboards 69 The new campaign comes as part of Quiznos effort to expand again after their decline in the 2010s 70 Lawsuits and controversies EditQuiznos has been the target of several lawsuits related to its treatment of franchisees including lawsuits in New Jersey and Wisconsin 71 It has faced more lawsuits from franchisees than bigger chains such as McDonald s Burger King Wendy s and even its sandwich competitors Subway and Blimpie according to an analysis by the legal research firm Thomson West In February 2007 Quiznos franchisees filed a lawsuit seeking class action status in Michigan 71 One lawsuit filed in New Jersey and seeking class action status said that the astounding growth record of Quiznos was merely a mirage In 2003 and 2004 Quiznos said it sold 234 trade areas in the state of New Jersey to franchisees collecting the 25 000 franchisee fee but none of these locations ever opened according to the lawsuit 71 Three years after handing over her check for the fee Elisa Whitehall said that she had yet to open a Quiznos in the location she bought and that Quiznos refused to return the fee 71 One lawsuit cited a memorandum drafted by a Quiznos lawyer in 2003 that stated 40 percent of Quiznos units are not breaking even a fact that prospective franchisees say they were never told 71 The United States Small Business Administration said 23 4 percent of Quiznos franchises with SBA loans failed In contrast Subway had a 4 8 percent failure rate 43 72 As a single example of an unprofitable franchise Fredrick N Westerfield was running three Quiznos in Wisconsin After spending 14 000 in personal savings to keep the stores running he realized he had a debt of 750 000 He closed all his stores in 2005 Customers used to come into the store and say to me You must be rolling in the money recalled Mr Westerfield If they only knew 71 In 2002 the Seattle Times reported that the company initially ignored the plight of a Quiznos employee who took over operations of one Quiznos store after the true owner abandoned it 73 Months later the store was closed 74 In June 2004 the Quiznos at Downtown Crossing Boston was at the center of a hepatitis scare 75 In 2006 Quiznos sent letters to 300 franchises saying mystery shoppers would be coming to test their services The company sued franchise owners Richard Piotrowski and Ellen Blickman for not putting enough meat in a prime rib sandwich Piotrowski and Blickman countersued and won the lawsuit in 2009 Judge Morris Hoffman called the meat weighing exercise and subsequent termination letters a charade aimed at bolstering a national ad campaign against rival Subway 76 77 On November 27 2006 Bhupinder Baber franchise owner of two Quiznos locations in Long Beach California died by suicide after a legal battle with the company 78 In his suicide note Baber said that the way he was treated by Quiznos drove him to suicide 79 The Toasted Subs Franchisee Association TSFA a group of franchisees posted Baber s suicide note on its website and intended to raise money for Baber s family Quiznos attempted to terminate the TSFA s franchises 80 The TSFA in turn filed an injunction on December 15 2006 in the District Court of Colorado 81 A 2014 article in the Long Beach Post suggested that the factors that contributed to Baber s suicide also led to the parent company s bankruptcy in 2014 82 As of July 1 2010 Quiznos was close to reaching a settlement over the multiyear class action lawsuit that covers nearly 10 000 of its current and former franchisees The case comprises four separate class action lawsuits dating back to 2006 which consolidated in 2009 involved allegations by attorneys for franchisees that Quiznos Franchise Co LLC and other entities with ownership or control of the Quiznos chain had violated U S racketeering and corruption statutes Also at issue was the chain s supply chain and food costs marketing and advertising funds and disputes among franchisees that agreed to but did not open locations and whether royalties are owed Quiznos denied all claims made in the lawsuits and the settlement agreement involves no finding or admission of liability nonetheless the cost to Quiznos has been estimated from 100 to 200 million while also forcing it to implement a new business plan which puts more support into its franchisees 83 84 82 See also Edit nbsp Companies portal nbsp Food portal nbsp United States portal nbsp Colorado portalList of submarine sandwich restaurantsReferences Edit Number of Quiznos locations in the United States in 2021 ScrapeHero Retrieved September 9 2021 a b Rubino Joe June 11 2018 California company buys Quiznos but Denver born sandwich chain to keep its HQ local new owner says The Denver Post Retrieved June 18 2018 Maze Jonathan January 4 2019 Tim Casey named Quiznos CEO Restaurant Business Online Quiznos Restaurant Business Jargon Julie December 6 2013 Crisis Quickens at Quiznos The Wall Street Journal Retrieved April 21 2015 Restaurant Business Staff June 21 2016 2016 Top 500 Sandwich Chains Restaurant Business Online Retrieved December 9 2018 a href Template Cite web html title Template Cite web cite web a last has generic name help Kelly Debra September 7 2018 The real reason why Quiznos is disappearing across the country Mashed com Retrieved July 29 2020 Maze Jonathan June 13 2018 A brief history of Quiznos collapse Restaurant Business Retrieved July 29 2020 a b Jenkins Kevin September 12 2002 Quizno s fills niche between fast fine dining Southeast Missourian Retrieved October 31 2013 Sweeney Patrick February 16 2003 Briefs spot puts Quiznos founder in the public eye Denver Business Journal Retrieved October 31 2013 Smith Andrew F 2011 Fast Food and Junk Food An Encyclopedia of What We Love to Eat Volume 1 ABC CLIO p 586 ISBN 9780313393938 Retrieved November 6 2013 Smith Andrew F 2006 Encyclopedia of Junk Food and Fast Food Greenwood Publishing Group p 225 ISBN 9780313335273 Retrieved November 6 2013 Wagner Kyle February 20 2004 System not a go at all Quiznos Denver Post pp FF 09 Alternate Link via ProQuest Gartner William B amp Bellamy Marlene G 2008 Creating the Enterprise Cengage Learning p 354 ISBN 9780324353631 Retrieved November 4 2013 The Philip Lief Group amp Arden Lynie 2010 220 Best Franchises to Buy The Essential Sourcebook for Evaluating the Best Franchise Opportunities Random House ISBN 9780307432117 Retrieved October 28 2013 Christman Bob December 18 1995 Young sub mogul dives into Tucson waters Quiznos CEO 31 is captain of 103 deli chain Arizona Daily Star p 7D Retrieved October 31 2013 Fysh Graham September 21 1995 A Sub Attack Sandwich Entrepreneur Plans To Open 53 Restaurants In Region Tacoma News Tribune p E1 Retrieved October 31 2013 a b Quiznos launches health club chain Denver Business Journal February 10 2005 Retrieved October 31 2013 a b The Quizno s Corporation Company Profile Information Business Description History Background Information on The Quizno s Corporation Reference for Business Retrieved October 31 2013 Munk Nina 2013 The Idealist Jeffrey Sachs and the Quest to End Poverty Random House ISBN 9780385537742 Retrieved October 31 2013 a b Sealover Ed May 18 2012 Quiznos strives to be Better Than Ever Denver Business Journal Retrieved October 31 2013 Quiznos makes switch from Coca Cola to Pepsi Deseret News Associated Press August 29 2004 Is your cup holder looking sad and lonely Cheer it up We have Coca Cola again Twitter August 23 2019 Retrieved November 8 2020 Quiznos Owner Signs Exclusive Deal with Coca Cola QSR August 13 2019 Retrieved November 8 2020 Quiznos sees Quebec restaurant break national first week sales record Canada NewsWire Press release August 5 2008 Archived from the original on July 11 2015 Retrieved October 21 2014 Quizno s begins European launch with UK openings Market Magazine March 11 2001 Switzer Peter August 31 2007 Bitter lesson in Quizno s affair The Australian ACCC obtains franchise fee refund for Quizno s franchisees August 7 2007 Quizno s opens first Mexican restaurant Denver Business Journal November 7 2002 Quiznos planning to open shops in Kuwait Associated Press November 2 2010 Raje Abhishek December 9 2011 Quiznos opens first store in India Times of India Quiznos to open first PH restaurant next week ABS CBN News September 19 2012 Pankratz Howard July 26 2013 Denver based Quiznos opens in Russia plans 500 restaurants there Denver Post Quiznos Thrives in Asian Markets QSR November 20 2013 Retrieved December 12 2013 Pankratz Howard July 26 2013 Denver based Quiznos opens in Russia plans 500 restaurants there Denver Post Quiznos expands into Middle East Asia Chain Store Age Quiznos brings toasted subs to Taipei with trial run China Times September 3 2014 Archived from the original on October 18 2014 Retrieved October 14 2014 Taiwan Business Briefs Quiznos to open 100 stores Taipei Times September 15 2014 p 14 Quiznos targets 100 Taiwan stores Inside Retail Asia September 15 2014 Quiznos opens first outlet in the UAE Gulf Today September 28 2014 Quiznos opens first outlet in UAE seven more this year Khaleej Times September 27 2014 Archived from the original on October 21 2014 Retrieved October 21 2014 McCaffrey Una April 29 2011 Goodbye to education and hello to Mr Chips The Irish Times Retrieved June 13 2020 a b Trowbridge Denise July 13 2010 Quiznos activates strategy to bounce back Columbus Dispatch Archived from the original on July 22 2010 Retrieved August 1 2010 Struggling Quiznos sandwich chain working with creditors on debt restructuring Denver Post December 21 2011 Harden Mark February 21 2012 Quiznos names executive chairman board members CEO will stay on Denver Business Journal Retrieved November 6 2013 Jennings Lisa October 16 2012 Quiznos CEO outlines strategies moves ahead Nation s Restaurant News Retrieved November 6 2013 Palank Jacqueline March 14 2014 Quiznos Files for Chapter 11 Bankruptcy Protection 2nd Update Wall Street Journal Archived from the original on March 14 2014 Retrieved March 14 2014 McCarty Dawn amp Patton Leslie March 15 2014 Quiznos Follows Sbarro Into Bankruptcy Court Bloomberg News Retrieved October 30 2014 Quiznos Emerges from Bankruptcy Associated Press July 1 2014 Archived from the original on August 21 2014 Retrieved August 20 2014 Jennings Lisa December 2 2015 New Quiznos Grill concept debuts as part of turnaround plan Nation s Restaurant News Quiznos Grill Switches to Zeps Epiq Sandwiches Westword December 15 2016 Retrieved October 20 2017 Coley Ben March 8 2021 A New Era Arrives at Quiznos QSR magazine Retrieved July 24 2023 Coley Ben August 1 2022 The Quiznos of Tomorrow Has Arrived QSR magazine Retrieved July 24 2023 Guszkowski Joe December 15 2022 A former Quiznos franchisee comes back to the brand Restaurant Business Retrieved July 24 2023 Number of Quiznos locations in the United States in 2022 ScrapeHero Retrieved April 24 2022 Michaels Laura March 25 2020 Quiznos is growing again outside the U S at least franchisetimes com Retrieved September 11 2021 McCarthy Michael April 30 2002 Quizno s doesn t hold back in ads USA Today Retrieved October 31 2013 Swartz Mimi December 12 2011 Jim Parsons is my Texan of the Year Dallas News Retrieved October 31 2013 Stevenson Seth February 23 2004 The Creatures From the Sandwich Shop Slate Retrieved October 5 2012 Zelkovich Chris September 6 2004 Burke s bites a relief from Cherry flavour Toronto Star Archived from the original on March 5 2016 Retrieved October 31 2013 The Insider Baby Bob lands on his feet with Quiznos gig Seattle Post Intelligencer January 16 2005 Retrieved October 31 2013 Kiefaber David April 1 2011 Dipping Quiznos sandwiches isn t this hard Ad Week Archived from the original on August 7 2013 Retrieved October 31 2013 Hoffman Ken January 12 2006 Quiznos bread bowls good to the last crumb Houston Chronicle Retrieved October 31 2013 Shore Sandy January 28 2008 Redefining Quiznos Fort Wayne Journal Gazette Archived from the original on April 22 2014 Retrieved October 31 2013 Quiznos Launches New Double Cheese Cheesesteak Sub with Beefed Up Duluth News Tribune October 29 2009 Archived from the original on December 12 2013 Retrieved October 31 2013 Quiznos launches aggressive ad campaign against rival Subway Herald Journal October 1 2006 p E6 Retrieved October 31 2013 Quiznos intros Peppercorn Parmesan Turkey sandwich Fast Casual April 16 2007 Archived from the original on December 13 2013 Retrieved October 31 2013 Quiznos Debuts Toasty Points Loyalty App Hospitalitytech com October 4 2016 McCarthy Amy July 18 2023 The Spongmonkeys Fast Food s Most Unhinged Mascots Are Back Eater Retrieved July 18 2023 Spongmonkeys Return Quiznos www quiznos com Retrieved July 18 2023 a b c d e f Creswell Julie February 24 2007 When Disillusion Sets In New York Times Retrieved August 1 2010 Hulsey Lynn amp McCall Ken April 6 2013 Taxpayers paid 1 3B to cover bad business loans Dayton Daily News Retrieved October 30 2013 Holt Shirleen February 4 2005 Fast food shop owner takes off employees take over Seattle Times Retrieved June 28 2011 Holt Shirleen March 24 2005 Manager who never quit sees Quiznos store shut Seattle Times Retrieved June 28 2011 Hundreds Show Up For Quiznos Hepatitis Clinic WCVB TV The Boston Channel June 29 2004 Archived from the original on September 30 2007 Retrieved January 6 2007 Quiznos v Zig Zag Restaurant Group Scribd December 31 2008 Retrieved June 28 2011 McGaw Renee January 9 2009 Quiznos loses case over treatment of franchisee Denver Business Journal Retrieved August 1 2010 Arellano Kristi December 15 2006 Quiznos fires 8 franchisees Denver Post Baber Bob Bob Baber Suicide note PDF MediaNews Group Archived from the original PDF on April 10 2008 Retrieved April 4 2009 Disenfranchised Why Are Americans Still Buying Into the Franchise Dream Pacific Standard March April 2014 Retrieved July 23 2016 Quiznos franchisees fight back Fast Casual Networld Media Group December 14 2006 Archived from the original on July 23 2015 Retrieved July 23 2016 a b Bennett Sarah March 28 2014 Quiznos Bankruptcy May Have Roots in Long Beach Franchisee s Suicide Long Beach Post Tice Carol July 2 2010 As Lawsuit Settlement Nears Quiznos and Franchise Owners Need to Hug it Out CBS MoneyWatch Retrieved June 28 2011 Liddle Alan J July 2 2010 Quiznos class action case close to settlement Nation s Restaurant News Retrieved June 28 2011 External links Edit nbsp Wikimedia Commons has media related to Quiznos Official website Retrieved from https en wikipedia org w index php title Quiznos amp oldid 1180300637, wikipedia, wiki, book, books, library,

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