Quiznos restaurants are having hard times. The news highlights and hypes up the stress and potential disaster on a daily basis. Here is a short list of what the articles talk about:
- Sharpened competition.
- 2005 Quiznos was no longer the exclusive toasted sub.
- In 2008 the $5 footlong became a standard and the $4 torpedo from Quiznos did not compete.
- Lost 600 locations in 2010. (estimated)
- Sales are down.
- Can't pay it's debt.
- Downturn in the number of stores.
- Estimate 5,000 in 2006 to less than 3,000 this year.
- Less revenue per store.
- Sales dropped 14% in 2010. (estimated)
- Privately held Quiznos had highly leveraged investment in 2006.
- Franchisees buy food at allegedly above-market prices from a Quiznos-mandated supplier network which squeezes profit margins.
- Franchisees filed lawsuit against Quiznos.
- 2009 Quiznos settled a franchisee class-action lawsuit by agreeing to pay up to $95 million.
- "Just three years ago, it topped $2 billion in sales. Now, industry observers say the Quiznos sandwich chain led by Denver investors Rick, below, and Richard Schaden — is $875 million in debt, with sales down 14 percent and 600 stores closed last year. "It's one of the biggest restaurant collapses in American history," says restaurant analyst - John Gordon.
The fact that restaurants are closing their doors will make the competitors across the street smile. The restaurant business is tough enough and those who avoid a similar fate will have an influx of new applications and new guests.
There are four things Quiznos needs to look at:
1. Fix the franchisee problem
2. Find a new (or renewed) focus
3. Invest in the franchise.
4. Stick to your plan.
You will find these answers expanded on at;
BusinessWeek.com columnist and president of McKee Wallwork Cleveland, an award-winning, integrated marketing firm that helps stalled, stuck and stale brands permanently address their core business challenges. Lead researcher in a groundbreaking, multi-year study of hundreds of struggling companies and author of When Growth Stalls: How it Happens, Why You're Stuck, and What to Do About It.
Four recommended questions to ask:
- Are corporate and franchisees aligned?
- Do they have a strategy not just to survive, but to succeed?
- Can they execute?
- Are they willing and able to tough it out?
These are not questions specific to Quiznos. They apply to your business. Now is a good time to ask the question.
With Marie Callendar's Chapter 11 bankruptcy still fresh in the minds of those in the restaurant industry, the bell tolls and it may be time to apply aggressive guerrilla marketing tactics. Done correctly, guerrilla marketing works 100% of the time.