QUIZNOS Franchise Failure Blamed on Corporate Policies

March 4, 2011 Franchise Publicity

Quiznos franchise failure in Elgin, Illinois is being blamed on Quiznos corporate policy decisions, the recession and prolonged street construction according to a story in the Courier News.

After eight years in business, Quiznos franchise owners Joe Follrath and Suzanne Pfaff said they’ll shut their doors for good next week “unless someone makes us a last-minute offer to buy the place.”

The Douglas Avenue sandwich shop, which has been in business downtown for eight years, will stay open until it runs out of stock, which probably will be by the end of next week, they said. The owners plan to hold an auction sometime thereafter.

The Quiznos franchise owners have been looking at options for about six months but the business is no longer financially viable. They plan to hold an auction once they run out of stock.

In addition to the tight economy and downtown construction, Quiznos onerous company policies helped cause shrinking margins tight and dwindling profits. According to the article:

“We originally chose to open a Quiznos franchise because of the company’s growth potential and the quality of its products,” said Follrath. “We did great business for the first few years, but sales have been swiftly declining since we hit our peak in 2007.”

According to information provided by Elgin’s Downtown Neighborhood Association, with the recession on the horizon, between 2007 and 2009, more than 1,000 franchisee-owned Quiznos closed.

“Franchisees cite rising Quiznos-distributor food costs, drastic coupon discounts such as buy-one, get-one-free sandwiches, and other corporate policy decisions,” the release stated. “Currently, Quiznos is requiring its franchisees to undergo a complete interior renovation and point-of-sale system upgrade.”

Tonya Hudson, executive director of the Downtown Neighborhood Association, said she is amazed that the Quiznos franchise owners persevered as long as they did, calling it “a testament to the loyal customer base they built in downtown over the past eight years.”

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