What Actually Happened To Quiznos And How Many Locations Are Left?

It may seem like a dim memory in fast food history, but once upon a time — way back in the early 2000s — a sandwich company was blazing trails across the United States. We aren't talking about Subway; this chain was poised to possibly unseat even that market-dominating giant. The quickly expanding brand was Quiznos, and in its heyday, the company had 4,700 locations across the states. But what started out as a major success story turned into a textbook example of how not to operate a restaurant chain. Quiznos has less than 200 remaining locations in the United States as of November 2024 — just a tiny fraction of the stronghold it once possessed.

So, what exactly led to the downfall of this once-promising brand? The answer is multifaceted. At the heart of it, the company was engaging in practices that made it almost impossible for franchisees to turn a profit. Angry location owners ultimately banded together and took legal action against the company. While competitor Subway is no stranger to lawsuits, that sandwich leader hasn't encountered a perfect storm like the one that ultimately crushed Quiznos. 

A combination of expensive settlements and related public relations fallout, devastating strategic moves made by Subway, the Great Recession of 2009, a disastrous leveraged buyout, and, ultimately, a bankruptcy filing (owing to massive debt, similar to TGI Friday's cause for bankruptcy) led to a widespread rash of rapidly closing restaurants and a downward spiral that Quiznos has never recovered from.

A big mistake Quiznos made was its practice of charging franchise owners extremely high prices for food and paper supplies through its American Food Distributors subsidiary. Because these mandatory costs were so high, restaurant owners struggled to make any money. Corporate Quiznos, on the other hand, made millions — at their expense.

Quiznos also lost the competitive edge that originally made it stand out. The brand initially carved a niche in the sandwich space by being the only chain (at the time) to routinely offer toasted subs. Dealing a devastating blow to Quiznos already unstable foundation, lead competitor Subway started offering toasted subs in 2005 and then unveiled its popular $5 footlong special. When Quiznos responded with coupons for free sandwiches outright, struggling franchisees would not honor the coupons. which angered and confused customers, tarnishing the brand's reputation. In 2009, the brand lost a lawsuit against said franchisees and owed $95 million — then an additional $206 million the next year in another lawsuit by the franchisees. All things combined led to the mighty crash of a brand that once seemed headed for dominance.

It's been a long, bumpy road for Quiznos, but the chain hasn't been snuffed out. As of November 2024, it's under the ownership of High Bluff Capital Partners, which acquired the franchise in 2018. The company has been slowly opening new Quiznos locations in Pump & Pantry convenience stores, through a partnership with Bosselman Enterprises. Fresh appeals are also being made to attract new franchise owners, touting a support system that puts restaurant owners at the top of the priority list (a far cry from the operating model of the past).