Here's Why Quiznos Faced A Downfall
NEWS
By TIM FORSTER
In the 1990s and 2000s, Quiznos was making a name for itself with 5,000 restaurants open. However, by 2024, the chain had under 150 locations left in the U.S.
The reason for Quiznos’ downfall seems to be more about poor management. A big issue was that it expanded too fast and franchisees complained about locations being too close.
A key issue was that franchisees were obliged to buy their restaurant supplies directly from Quiznos corporate at prices they claimed were inflated, making it hard to turn profits.
Around 2006, franchisees launched lawsuits against Quiznos, accusing them of racketeering and fraud for the rules. Merging the lawsuits resulted in a $206 million settlement.
Between 2007 and 2012, Quiznos closed around 2,000 restaurants and spiraled from there, filing for bankruptcy protection in 2014.
