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Quiznos  Case  Study  
Stratford  University  
Quiznos  sells  themselves  as  â??The  little  sub  shop  that  began  over  30  years  ago  
in  Denver,  CO  still  has  the  same  bold  ideas  that  we  had  in  the  beginning.  We  
boldly  believe  that  your  food  should  taste  great  and  that  we  should  use  only  
the  highest  quality  ingredients  to  create  your  perfect  lunch.�    They  pride  
themselves  in  making  every  sandwich  to  order  and  maintaining  
uncompromising  quality  in  their  product.    They  embrace  diversity  and,  
according  to  their  corporate  website,  strive  to  â??contribute  to  a  workplace  
where  our  team  members  are  compassionate  and  show  respect  for  our  
different  backgrounds,  values,  and  beliefs.�    
Quiznos,  based  in  Denver,  Colorado  is  a  franchised  fast  food  restaurant  that  
specializes  in  toasted  submarine  sandwiches.  It  was  started  in  1981  by  
Jimmy  Lambatos,  who  began  to  sell  franchises,  under  the  name  Quiznos  
American  Inc.,  about  two  years  later  to  fund  expansion.      This  expanded  the  
number  of  stores  to  18  when  it  the  entire  chain  was  purchased  by  Rick  and  
Richard  Schaden  in  1991,  changing  the  name  to  The  Quiznos  Franchise  Corp.  
In  1995  Quiznos  became  publicly  traded.    At  its  peak,  Quiznos  had  5000  
restaurants  both  domestically  and  internationally.    Their  main  competitor  
was  Subway.        
During  the  recession  of  2007-­�2009,  approximately  2000  Quiznos  closed.  
Avenue  Capital  Group  of  New  York  purchased  the  majority  of  the  company  
stock    in  January  2012,  to  help  eliminate  the  $900  million  debt  and  to  infuse  
some  capital  into  the  company  to  keep  it  afloat.    However,  even  with  the  
infusion  of  capitol  and  hiring  of  the  former  UPS  store  president  as  CEO,  on    
March  14,  2014,  Quiznos  filed  for  Bankruptcy.  Through  Chapter  11  Quiznos  
hopes  to  restructure  its  debt  and  make  improvements  in  its  operations.  
During  the  period  between  2002  and  the  present,  a  number  of  law  suits  were  
brought  against  Quiznos,  one  even  ending  it  the  suicide  of  a  franchise  owner.    
However,  many  analysts  suggest  that  the  major  problem  underlying  Quiznos  
decline  is  their  marketing.    
Questions  for  Reflection:  
â?? View  some  of  the  advertisements  used  by  Quiznos  over  the  years  at  
â?? What  problems  do  you  see  with  the  advertising?  
â?? What  do  marketing  experts  say  about  who  Quiznos  is  and  how  they  
sell  their  product?    
â?? What  would  you  do  differently?  

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