Quiznos sub chain pondering bankruptcy filing

The Quiznos  sub sandwich chain, which has multiple locations in metro Atlanta, is still trying to decided whether it will seek Chapter 11 bankruptcy court protection to deal with its massive debt.

The Associated Press reported Friday that the company is still trying to negotiate with creditors, including former company executives, landlords and developers, who are owed $875 million. The chain wants to owe them a lot less and if it doesn’t get deep concessions with all of the creditors – it has deals with three-quarters of them so far – bankruptcy will follow.

The company did not disclose how its restaurants and franchise relationships would be affected if it decides to file for Chapter 11. In May of 2010, the company announced plans to develop up to 600 new locations nationwide by the end of 2010, through corporate-owned and Quiznos-funded joint venture opportunities.

The company has closed about 1,500 locations in recent years, leaving it with about 3,500 as of July, AP reports. Quiznos has more than two dozen locations in metro Atlanta.

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[...] Quiznos subway chain pondering bankruptcy filingAtlanta Journal Constitution (blog)The Quiznos subway sandwich chain, which has multiple locations in metro Atlanta, is still trying to decided whether it will seek Chapter 11 bankruptcy court protection to deal with its massive debt. The Associated Press reported Friday that the …Quiznos Unwraps Debt PlanWall Street JournalQuiznos eyes possible Ch. 11 bankruptcy protectionThe Associated PressQuiznos Seeks to Avoid Chapter 11 With Debt Restructuring DealBloomberg [...]

islandchefin

December 24th, 2011
4:02 pm

Hmmmm, such a large company, Wonder if it was mismanagement or do they have a bad product? I’ve never eaten there….have any of you?

kev

December 24th, 2011
4:05 pm

not to be a smart one, but Quizno’s isn’t a “subway” chain is it?

phillip

December 24th, 2011
4:06 pm

The Quizno’s in LaGrange is now shuttered. Had a pretty good location on the square right in downtown. It was up and down. Up and down. I thought it was a little pricey, but the product was pretty good.

Epiphany

December 24th, 2011
4:07 pm

Quiznos makes good sandwichs but their prices are too high. Need to run more specials like Subway. Used to give great coupons, but they stopped that also. Gotta go where you get the best deal. Sorry.

kev

December 24th, 2011
4:07 pm

…. and they should’ve seen it coming years ago. How do you charge more than your biggest competitor (subway) when they have more brand recognition AND they put a lot more meat on their sandwiches… that scale in Quizno’s left you with nothing but bread every time. Even when they’d give out those coupons to corporate offices- a meal would STILL cost near double that of a footlong combo at subway.

Merry Xmas

December 24th, 2011
4:09 pm

Well, this answers things… kinda. The other day we stopped at 2, both closed. Gave up and went to Publix. BUT these are franchises. Who’s dropping the ball on marketing and schooling the owners who buy in? – they all tend to do what they want. Great (addictive – lol) product, but over priced. We never go without a coupon.

Franck

December 24th, 2011
4:13 pm

put a fork in it… they’re done

Uga

December 24th, 2011
4:13 pm

Food is pretty mediocre. It looks good, is marketed well, and isn’t bad, but it’s not the kind of place most folks would go out of their way for, and I doubt it’s many folks’ first choice when there are other fast-food options.

Bob

December 24th, 2011
4:15 pm

Personally, I was turned off Quizno’s when they switched to Pepsi products. Is there a correlation between their recent struggles and those of Arby’s, Fuddrucker’s, and Blimpie for companies that switched from Coke to Pepsi?

Linda

December 24th, 2011
4:15 pm

Their food was good, but was too pricey for sandwiches. Needs to be more competitive with Subway types.

Merry Xmas

December 24th, 2011
4:15 pm

Side note… I found the Subway has gone up as well when I tried ordering my usual 6″ on a day when it wasn’t the value meal – $7 bucks. A salad and a drink came to similar one day. Hope they save themselves through marketing and specials, low fat line, etc.

Light

December 24th, 2011
4:15 pm

The food was very good but agree with other posters, very pricey. More money should have been put into marketing and establishing their brand and offering discounts. To me they are in a different class than Subway, maybe more in line with Firehouse Subs.

Merry Xmas

December 24th, 2011
4:16 pm

Bob, Papa John’s recently announced a switch to Pepsi as well.

Merry Xmas

December 24th, 2011
4:18 pm

Light, is Firehouse similar? Never tried them. TRUE, better quality than Subway, btw.

mar c ah

December 24th, 2011
4:24 pm

Wow……….. Quizno’s is much better tasting than Subway. Any sandwich maker in their right mind that has done their homework on types of ingredients in sandwiches should know damn well that you put provolone cheese on, or at least have it available to offer for an Italian sub, not American. Hint, hint SW.

Jason

December 24th, 2011
4:39 pm

Have visited the one in Dunwoody on several occasions over the last few years and the product seems good. The store has changed hands as of a year ago and was closed for several months in between. Hard to judge the company on this store though because Dunwoody is such a business unfriendly town. Earlier this year, the city of Dunwoody ran off Chick-fil-a who wanted to open a store there :(

PT worker

December 24th, 2011
4:45 pm

I tried Quiznos several times but they cost more than Subway and their sandwich is not all that special. I loved Fuddruckers also and was sadden when they closed because of the 1 LB burger!!!!!!!!!!!!!!!!

Kneel Borezt

December 24th, 2011
5:02 pm

Subway is MUCH better than Quiznos. The market has spoken.

Joseph Pearl

December 24th, 2011
5:07 pm

Joseph S. Pearl, LL.M. – A Professional Law Corporation
1400 Chester Ave., Suite C
Bakersfield, CA 93301
661-281-0253

It’s too bad that while Quiznos is trying to work out debt restructuring with its creditors, It may have to seek Chapter 11 protection. Consumers quit buying their subs as a result of the recession. It’s apparent that they are ready to seek bankruptcy protection if they cannot work out the debt.

Ned Puddleman

December 24th, 2011
5:13 pm

I think their food is good. However, I always have trouble ordering because the Indians that work there have a hard time understanding what I want and it is hard to point to it on the menu because the menu is too small.

blah blah

December 24th, 2011
5:17 pm

not selling enough of those great torpedo subs eh?

Astropig

December 24th, 2011
5:18 pm

I think that its Karma or poetic justice…A few years ago when the chain was taking off and ready to grow,expand and prosper, the founding family essentially stole it from the public shareholders that had put up the capital to make it a nationwide chain. these jokers hired consultants to agree that the lowball price that they offered was “fair” and their pet insider directors went along with it.They got the gold mine, we got the shaft. Good to see that they got a taste of their own medicine.

RichD

December 24th, 2011
5:19 pm

Bankruptcy has become the coward’s way out in this country. Gee, I’ll just borrow a bunch of money from others and start a business…if it doesn’t work out, I’ll declare bankruptcy. Screw the people who loaned me money…then I’ll just do it all over again. Frankly, it’s the lawyers that set up this system of no personal responsibility…never met a lawyer that was worth a crap.

If you borrow money and agree to pay it back with interest, then do it.

.

bs

December 24th, 2011
5:21 pm

@Ned – I agree. Quiznos seems to be going the way of Dunkin Donuts. Trying to not be offense just observational, but many DD’s are run by Indian/Pakistani operators and they tend to be very cheap, and I stopped going to DD’s because you barely get frosting on the doughnuts and the quality of food went down hill. The same is happening with Quiznos.

jb

December 24th, 2011
5:38 pm

First of all it has nothing to do with Indian ownership (Subway has many more Indian owner / operators)- it has nothing to do with the economy (fast food concept chains have uniformly benefited from the economy)- it has nothing to do with Pepsi (the restaurants mentioned above that are closing are owned by Yum! Brands- a huge stakeholder in Pepsi- they are closing because Yum! has decided to focus those concept restaurants overseas, primarily China and India)- it has nothing to do with Bankruptcy being a “way out” (any one who has an MBA or has attended business school will tell you that BK is part of a standard business plan- put all the money in the owner’s LLP or LLC and then declare BK).

THE MAIN REASON QUIZNO’S IS FAILING IS DUE TO OVER PRICING.

I would not be surprised if they over price ON PURPOSE- just so that they can justify “market conditions” ostensibly so that they can keep their fortune and move on to another concept restaurant franchise system.

bs

December 24th, 2011
5:44 pm

KFC, Pizza Hut and Taco Bell are the only Yum Brands. Quiznos trades as Fooster (I think Foods), Papa Johns trades as Papa Johns International

Dagwood Bumstead

December 24th, 2011
5:44 pm

Good riddance! Another “Become a millionaire!” franchisor about to go down the drain while taking their franchisee’s life savings with them. One more down and many to go until our strip shopping centers are once again filled by real, locally owned and developed businesses. I can hardly wait! It will be nice to eat real food again instead of something shat out of the back of a Sysco truck.

bs

December 24th, 2011
5:45 pm

And Subway has gotten cheap too.. you can barely get olives on a footlong sub. I rarely eat there anymore either.

Merry Xmas

December 24th, 2011
6:07 pm

Never seen a Quiznos that’s Indian owned and ran. On the flip, never seen a Subway that wasn’t – however they’ve been some of the nicest I’ve encountered period in “fast food”.

ML

December 24th, 2011
6:12 pm

Mmm…mmm…TOAST!

kp

December 24th, 2011
6:15 pm

“Quiznos subway sandwich chain, which has multiple locations in metro Atlanta, is still trying to decided….”

subway chain? trying to decided?

who writes this stuff? my 13 year old niece writes better than this (and she goes to a government school).

todd

December 24th, 2011
6:27 pm

JB- the main reason Quiznos is going out of business is that they have come late (relatively) to the party and Subway has all the prime spots in “A” shopping centers with large retail anchors. I have owned many franchises in the past and location in an anchored center is just about guaranteed success. Most Quiznos are found in B or C locations and just cannot get the foot traffic to meet the numbers needed. When the average ring is less than $10 you need lots and lots of feet coming through the door to make it. Personally I thought their product was far superior to Subway and will be sorry to see them go.

Bill

December 24th, 2011
6:44 pm

What happened to newspapers that can proof read? Just like the AJC.

artyc

December 24th, 2011
6:53 pm

THE MEAT WAS CUT PAPER THIN YOU COULD SEE THROUGH IT
THE PEOPLE WHO RAN THE STORES LOOKED DIRTY i THINK THE PRODUCT
FOR THE PRICE THEY CHARGED WAS OVER PRICED.
JERSEY MIKES HAS A MUCH BETTER PRODUCT THE SANDWICHES ARE PACKED WITH FRESH MEAT.

James

December 24th, 2011
7:17 pm

Some of the highest quality fast food I ever ate.You cant target the masses without $3.99 specials and they cant do it without lowering the quality of the food.I personally dont care much for Subway but they’re doing something right.I have never understood why if your in the fast food business you would buy pepsi from a company that owns your compitition(KFC,Taco Bell,Pizza Hut).

ABBYSENIA

December 24th, 2011
7:21 pm

JB said it best. I too have a degree in business. I would like add to what you said, that a few years ago the concept was fresh and new. The economy was also doing fairly well with people not blinking at spending $8+ on lunch(that’s what you spend there on the CONSERVATIVE average), i’ve spent as much as about $12…but I’m a single male…i can do that. Anyway, I think they did NOT evolve with the economy and they over saturated their product. It now costs too much for the AVERAGE consumer. I think most of the locations I’ve been too have had good food, I haven’t been disapointed with my purchases…but I have had buyers remorese sometimes…LOL

Call Me Crazy But

December 24th, 2011
7:22 pm

The food just isn’t good, and it’s too expensive…the Douglasville location has the most depressing, dry workers ever. Feels like you’re walking into a mortuary. Love Firehouse and Lenny’s!!!

Mr Torpedo Sub

December 24th, 2011
7:31 pm

My guess is that they wouldn’t be filing BK had they spent less than they earned regardless of the price of their subs.

Subboy

December 24th, 2011
7:40 pm

I agree with Dagwood: These chain stores offer inferior products at increased prices. There’s one Quiz in Gainesville and the owners are very nice. Hate to see them go. However, the prices were not competitive with local sandwich shops which probably cost them customers. If you ever in Gainesville, tryout Turnstile Deli. Amazing!!!

Jazzy1700

December 24th, 2011
7:47 pm

I don’t care what everyone thinks. For me if you sell Pepsi instead of Coke, I don’t eat there! Stevie B’s just started Pepsi, Notice East West connector store just closed. And it was a new store. Makes you think. Atlanta is a Coke town.

Robert

December 24th, 2011
7:56 pm

Bring back Bob. I miss Bob.

Glenn

December 24th, 2011
8:10 pm

If they hadn’t wasted money on hiring an advertising firm that put out the commercials with those obnoxious “cats,” maybe they could have actually found a way to intice customers to come in and try their food. All their commercials did was scare people away.

urban redneck

December 24th, 2011
8:26 pm

i’d go more often if it wasn’t 20 bucks for two people to eat lunch. if you want a good sub, go to publix deli.

Tom

December 24th, 2011
8:40 pm

1) Corresponding failure with what soft drink is served is, at best, ignorant. More than a few chains that serve Crack have struggled too but people locally refuse to associate any hint of failure with the Polar Bear Executives.
2) In this economy, pricing is the main determining factor for most people. While some people just like Subway and some just like Quiznos, a lot of people may like them both but find they can’t justify the higher prices that Quiznos was guilty of. Location does matter too (people associate convenience with gas prices) and Quiznos really had struggled on that front.

Michael Marr

December 24th, 2011
8:48 pm

As a bankruptcy lawyer all I can say is !Bankruptcy Rocks! Everybody’s doing it, why not you?

phillip

December 24th, 2011
8:54 pm

Somebody way up earlier mentioned Publix. I have discovered that Publix has an outstanding salad offering. I eat at the LaGrange Publix probably three times a week. They have Greek Salads, Seven Layer Salads, a Buffalo Wing Salad, and a salad with eggs on top of it. Cost about $4.79 and there is a fountain drink dispenser right by it. I check out and sit over in the little dining area and have a very peaceful, and nice lunch and observe some of the scenery that comes strolling in.

Shannon, M.Div.

December 24th, 2011
9:00 pm

Ah, shades of Schlotzsky’s. I loved that place, but the food was expensive and *terrible* for you.

I believe that it’s struggling because there isn’t room in the market for both Quizno’s and Subway (not to mention Blimpie), and Subway has positioned itself as a healthy alternative to fast food.

But the market share for those sandwiches is low. I believe it’s smaller than the burgers/fried chicken/taco market because it doesn’t lend itself to drive-thru.

Mickey7

December 24th, 2011
9:09 pm

Rich D got to disagree. Yes if you take a loan you should pay it, but that is why you have interest rates (hence the term rate). Loans are risks, not guarantees.

John Hadden

December 24th, 2011
9:24 pm

As a past part owner of a Quizno’s I can tell you greed has killed this concept. They force you to buy all of the ingredients from them and the food cost was horrible. Very little corporate support, all they wanted was the money. When you combine high food cost, high rents, and a sagging economy with little corporate support you get a failed concept. I still think they have a superior product, but you can’t have it on a subway budget.