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Quiznos Sales & Profitablity – Summary Report

Quiznos Sales and Profitability.pdf pdf

“former owner”, a commenter on this site, left a tip on a document posted at the Toasted Subs Franchisee Association. The document purports to be a summary on Quiznos store profitability. Is it legitimate and accurate? I have no idea, but it’s probably in the ballpark. It’s apparently based on estimates gathered by franchisee sources reporting. Here’s snippet:

Quiznos Sales and Profitability – below is a list of sales statistics compiled year-to-date for Quiznos stores as of August 2005. In the Quinzos chain, an average new store (opened in the last 12 months) can break even around $7,000 to $8000, depending on fixed costs. This charts shows the number of stores breaking even or even losing money inthis chain. These sales figures are accurate. The profitabily estimates, are just that…estimates based on franchisee sources reporting.

Thanks “former owner”!

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62 comments
Bob Baber
Bob Baber

I am ALIVE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! HAHAHA you suckers thought i was dead! I was relaxing hanging with thick honies shotgunning quiznos subs while riding a subways dingaling and fighting space monkies who stole my philli cheesestakes, so I used my mayonase3 penas to penetrate the subway safe of supremecy. This is Bob Baber signing out.

Stanley
Stanley

It seem that a lot of you Q owners did not wnt to work in your stores, and thought that store would generate the money without any consequences of some good and bad times. Owning a business is not easy; takes a lot of work. You can't open the doors and hope someone else is going to make you money and all you do is show up and collect the paycheck. You hve to be willing to work the long hrs to make sure your food cost is correct, your odering, payroll, theft, nothing going out the back door, or even the cashier remembering the total of each product and don't wrang" it up and pocket the money. Little things like this can ruin physical moral, social or economic hardship. Run your own business stick out the hard time and good times and soon your cup will run over with blessings. The main thing pray and keep God first and he will direct your path.

Stanley
Stanley

It seem that a lot of you Q owners did not wnt to work in your stores, and thought that store would generate the money without any consequences of some good and bad times. Owning a business is not easy; takes a lot of work. You can't open the doors and hope someone else is going to make you money and all you do is show up and collect the paycheck. You hve to be willing to work the long hrs to make sure your food cost is correct, your odering, payroll, theft, nothing going out the back door, or even the cashier remembering the total of each product and don't wrang" it up and pocket the money. Little things like this can ruin physical moral, social or economic hardship. Run your own business stick out the hard time and good times and soon your cup will run over with blessings. The main thing pray and keep good first.

KELLY
KELLY

I am in the process of buying a Quiznos. This is number 2 in my metroplex. The owner is absentee and even then it is malking 2754/ a month. Please tell me what should i do?

Bob Baber RIP
Bob Baber RIP

4 years ago today Bob took his life as his Quiznos failed and he felt he did not have corporate support. May he rest in peace.

New Quiznos Owner
New Quiznos Owner

We're planning on getting a quiznos but have not been told the weekly sales figures- can somebody please shed some light on what the averages tend to be? Also I saw on another site food costs are 29%- is this accurate? (I know some people here say its much more...) Thanks in advance

jael
jael

Buying a Quiznos is the same as paying a thug to rob you everyday. The only difference is that Quiznos corp. will take much more money from you than the average thug.

Anonomous
Anonomous

Advice please. I am being given a Quiznos on a take over the lease basis. I only need to pay the franchise fee. The current owner is losing money monthly largely due to his business loan payment. I will not have a loan payment so should make money. Store is in the Northwest, rent is around $2500 plus CAM and is grossing 20k monthly. Any advice on what to expect/look out for, would be appreciated.

Guest
Guest

Very eloquent. Are you the corporate spokesman?

Guest
Guest

The link this Blog is built around no longer works. Does anyone know a working link?

good times?
good times?

Seems like not as many negative posts. Maybe Quiznos has turned it around?

Guest
Guest

Are you a successful owner? Please expand on you comment.

Guest
Guest

The quality at the store near me has allowed quality to go completely down the tubes in an effort to buy ingredients cheaper from local supermarkets. Their sauces are also watered down. I ordered a roast beef sub and when I told the girl working it tasted different she told me that was because the owner bought it at the supermarket next door.

Niall
Niall

Just a few thoughts here....anyone that had to close their Quiznos after only 8 months, was foolish, since a Quiznos franchise is protected from loss, for 12 months, unless bought outright, before it opens. Location, and good business sense, are the keys to making ANY business, especially food service, succeed. I happen to know 2 Quiznos franchise owners, both bought in their current owner partner scheme. Both are doing quite well, with average weekly sales at arounf 10K... I also know a few other business owners. Most owners, especially bar and restaurants owners, work for far less than minimum wage, for some time. It's the 'perks' of owning your own place. Anyone who wasn't aware of this, got into the wrong business. Quit blaming Quiznos, for your lack of foresight.

Lourie
Lourie

I had to close my Quiznos after only 8 months. We never broke even once! I was convinced to open a store in a rural area of only 6,000 people. My area director told me it would be a home run in this location. I am in the process of joining the class action suit. My question is this. With all the stores I hear that are closing and the economy they way it is how long do you think it will be before Quiznos files bankruptcy? What goes around comes around I guess!!!

Carol Cross
Carol Cross

Sure TIF --MICHAEL MOORE IS GOING TO BE ON LARRY KING TONIGHT FOR AN HOUR. Just "Google" Michael Moore and get his Email address. He will be happy to put you on his mailing lost. Did you get my question on the other thread about why a franchise contract is not considered a "security" under SEC law and why not? Certainly, both franchise contracts and leases have been securitized and are sold to investors in the public and private markets. Carol

Truth in Franchising
Truth in Franchising

[quote comment="153286"]You are right, Barb, but media is owned by big Corporate interests and the media will not report those stories that reflect badly on government and Corporate America, if this could hurt their bottom line. This, of course, is dangerous for our democracy and we are governed in darkness and the sunshine laws are often a farce. We are lucky that reporters like Janet Sparks, who writes for The Franchise Times, has brought stories to us franchisees that have allowed us to see into mediation and other matters that we have never had access to before. Mr. Blue Mau Mau and Franchise Pundit have also allowed free speech to talk about the dark side of franchising, even when this works against their interests. 60 Minutes used to be a wonderful Magazine show that brought truth to the people but they lost me when they fired Dan Rather for trying to tell what he believed to be the truth ----and then 60 Minutes never tried to find the truth and bring it to the American People. It is all about money and influence with CBS and the Networks really only tell us the truth they want us to know. Now we watch Republican or Democrat News Anchors and we don't know what the truth is and who to believe. I think they don't understand that most of the country don't think of themselves as either liberals or conservatives, etc... and are trying to find a middle ground on which they can survive and live the American dream. Forbes and some of the larger business magazines have hinted at the dark side of franchising but again, it is not really in their interests to expose the truth about the regulation of franchising as this would not be good "team play." The public don't read the Business magazines and the public, like the Congress, probably don't know the difference between a franchisor or a franchisee and if they do know, they think that all franchisees are rich because they own a Subway or a Quiznos or a UPS Store, etc... The ugly and ineffective regulation and the trickery that it enables is now a long-standing status quo that will be difficult to expose without the help of powerful people in our elected government and powerful people in the Media. I think our best bet is Michael Moore who intends to make a documentary about Corporate America. I have written to him! Why don't you do this, also! Carol[/quote] Carol and Barb - Hey can I play the "evil" franchisor in Michael Moore's upcoming mockumentary on the corporate greed in franchising? Maybe we can have a seen where I guy the franchisees assets on the courthouse steps and then sell them to a new franchisee without missing a beat? Hey do you have Michael Moore's contact information so I can reach out to him as well? TIF

Carol Cross
Carol Cross

You are right, Barb, but media is owned by big Corporate interests and the media will not report those stories that reflect badly on government and Corporate America, if this could hurt their bottom line. This, of course, is dangerous for our democracy and we are governed in darkness and the sunshine laws are often a farce. We are lucky that reporters like Janet Sparks, who writes for The Franchise Times, has brought stories to us franchisees that have allowed us to see into mediation and other matters that we have never had access to before. Mr. Blue Mau Mau and Franchise Pundit have also allowed free speech to talk about the dark side of franchising, even when this works against their interests. 60 Minutes used to be a wonderful Magazine show that brought truth to the people but they lost me when they fired Dan Rather for trying to tell what he believed to be the truth ----and then 60 Minutes never tried to find the truth and bring it to the American People. It is all about money and influence with CBS and the Networks really only tell us the truth they want us to know. Now we watch Republican or Democrat News Anchors and we don't know what the truth is and who to believe. I think they don't understand that most of the country don't think of themselves as either liberals or conservatives, etc... and are trying to find a middle ground on which they can survive and live the American dream. Forbes and some of the larger business magazines have hinted at the dark side of franchising but again, it is not really in their interests to expose the truth about the regulation of franchising as this would not be good "team play." The public don't read the Business magazines and the public, like the Congress, probably don't know the difference between a franchisor or a franchisee and if they do know, they think that all franchisees are rich because they own a Subway or a Quiznos or a UPS Store, etc... The ugly and ineffective regulation and the trickery that it enables is now a long-standing status quo that will be difficult to expose without the help of powerful people in our elected government and powerful people in the Media. I think our best bet is Michael Moore who intends to make a documentary about Corporate America. I have written to him! Why don't you do this, also! Carol

Barb
Barb

[quote comment="151847"]I agree Barb. How can we let the American people know what has been going on in franchising![/quote] Carol, We need to continue to warn people on the internet about the bad zors out there in the world of franchising. If you have connections with the media talk to them. Radio talk shows are popular. Hopefully 60 minutes or 20/20 will take the story. There are simply too many people being hurt in the franchising world. The more informed the public gets on how to protect themselves the better. Barb

Carol Cross
Carol Cross

I agree Barb. How can we let the American people know what has been going on in franchising!

Barb
Barb

I doubt if anything can be done. The public has no idea this is taking place. The turning and churning of franchisees is so obvious and unethical. Yet the law because of the one side franchise agreements allows this. This is stealing from the upper middle class and middle class. Most people cannot afford a franchise yet the people who have been responsible all their lives to be brought to a point where they have to go bankrupt is a disgrace. Our middle class is dissipating very fast. China I believe has the largest middle class now. Industry is being shipped overseas. We are becoming a franchise industry country. Which is horrifying. Many use all their resourses to open what we think is our business. But when you think about it you really do not own your own business. The real entrepeneur is the franchisor. There has to be a way for the public to get this truth. We need to fight to perserve the very thing that made our country great. The middle class. I hope the Quiznos people when they have their day in court will get recourse for all they lost. It may pave the way for others in the franchise industry to get justice that they deserve.

Carol Cross
Carol Cross

Quiznos franchisees are in a terrible position. If they don't continue to try to bring their businesses to break even or continue to stand at breakeven, they stand to lose everything. If they dig the hole deeper, in terms of more debt, to keep their operations going, they are taking on even more risk of bankruptcy, etc.. if they can't bring their restaurants to breakevern status and, later, can't even give them away. Their long-term leases that are personally guaranteed add hundreds of thousands of dollars to their debt and, perhaps, ensure bankruptcy and the loss of their houses if they can't GIVE their restaurants away to another buyer who perhaps can bring the unit to breakeven because of the lowered risk and overhead, etc...and added time in which to grow sales. This all works to the advantage of Corporate. As long as Quiznos can continue to expand internationally and nationally, and sell new franchises out the front door and abet the sale of highly discounted stores in fire sales out of the back door, they can continue to stand and profit because the gross sales of the system upon which they realize their profits will continue to grow. The state of the law enables and encourages predatory and abusive behavior by franchisors who will do what they CAN under law to maximize their profits. Unfortunately, under law, churning and pumping and dumping and encroachment and "saturation" seems to be legal and protected under the boilerplate standard franchise agreements of the industry. The sanctity of contract law protects churning and pumping and dumping, encroachment, and saturation and the profits of the franchisors and the other interested parties, i.e., the lenders and the banks, the builders and the developers, the investment community, etc.. The boilerplate contract ensures that franchisees acknowledge that they have purchased a Quiznos with the knowledge that there is 100% risk and that Quiznos has not guaranteed them success or profits. The SBA will not guarantee franchise loans and list franchisors on their Registry unless this disclaimer and acknowledgement is in the contract. There is really no recourse for exploited and cheated franchisees under our laws. Too bad! So sad! Maybe the disclosure of unit performance statistics by Corporate Quiznos would have prevented this situation from developing and getting out of control at Quiznos?

Quiznos "Bad Idea for Franchisees"
Quiznos "Bad Idea for Franchisees"

How about this for details: I purchased the rights for 4 Franchises in UT. . I was able to open 3 however I would have rather just write them a check for $500k and left it at that. I LOST it all. . I am joining the law suit. (My accountant after I was able to use my own and found a good one says. . it is impossible to make $ on these your food cost is too high. . He knows what he is talking about he owns 2 other food franchises himself, His comment "Quiznos is just out for themselves. . Sell NOW, it will only get worse". . . The only ones that have a chance to make any $ on these are the ones that have the stores almost given to them. . then they still regret selling their souls the Quiznos. I have heard that the new CEO is promising but I was too far under by the time he took over. . . Quiznos corp has aggressively squashed any free speech from websites "disparaging them" ie: TSFA (who is a trying to represent the Franchisee). . My suggestion is DO NOT OPEN a Quiznos. .It will just perpetuate their image. . YOU WILL CONTROL NOTHING you give them $25k for the right to pay them 11% of everything you earn or DON'T EARN. .with NO CONTROL over your own business. . better just go work for McDonalds. . at least at the end of the Week you get a pay check and possibly some benefits. You have ALL THE RISK the Franchisor has NONE but they have all the control. A LITTLE ONE SIDED (Sarcasm implied) Believe it or not it is comforting to know that I was not the root cause of the failure. . now lets see if I can get my life back on track. . .Thank God for a supportive wife Good Luck in your decision making

Looking for a Business
Looking for a Business

To all the posts and "QuiznosSucks.com": Thank you so much for your experience and stories - I almost bought a franchise since the prices seems relatively low and the advertised profits margin was high. However, after reading all of the stories, I am looking at other opportunities. Thanks again for putting this out there.

JBL
JBL

[quote comment="36739"]I own a quiznos in south atlanta. Worst mistake of my life! The area advisor Tom Sturkie can't be reached, his slick talking used car salesman Randy Trotter falsifies statictics with the intent to defraud people and the operations guy Bob Filip is a habitual liar.[/quote] They are all habitual liars!!!! Everyone associated with Q that is.

JBL
JBL

LOL.........Quiznos cost my friend and I about 130K and we were lucky enough to sell ours!!!!!!!!! We made 7-8k a week and lost about 2-3k a month! We were usually in the top 15 of 40+ stores in our region. Oh, he worked for free about 30 hrs a week, I made a small salary, less than 27k managing and working 50-60 hrs a week. I did not have help come in till 10 or 11 each day, so that left me, myself and I to do all the work each morning. It is impossible to make it unless you have crazy good sales and even then its only getting by.

devan
devan

I own a quiznos in south atlanta. Worst mistake of my life! The area advisor Tom Sturkie can't be reached, his slick talking used car salesman Randy Trotter falsifies statictics with the intent to defraud people and the operations guy Bob Filip is a habitual liar.

Ty
Ty

haaa buying quiznos is you buying your self a less than minimum paying job i work 9am to 9pm no days off you lucky if you can get half day off please do not buy quiznos. not just that if you want i can hook you up to get free quiznos subs franchaise now in los angeles california this damm true no joke i am try to sell my store since lst 2 years still could'nt if you want buy one let me know you can buy for less than 50g good luck folks

Ty
Ty

haaa buying quiznos is you buying your self a less than minimum paying job i work 9am to 9pm no days off you lucky if you can get half day off please do not buy quiznos. not just that if you want i can hook you up to get free quiznos subs franchaise now in los angeles california this damm true no joke i am try to sell my store since lst 2 years still could'nt if you want buy one let me know you can buy for less than 50g good luck folks ty

bagelman
bagelman

Breaking even on 7-8k based on fixed costs. LOL , if this is what Quiznos preaches there stores are being sold in nowhere USA. Trust me when I say the lease will break your back. I've post on this site elsewhere and if you want the nitty gritty email me at dmalke1121@yahoo.com. At 7-8k per week in most areas of the country you will be making minimum wage or lose money and will go out of business within a year or two depending on how much you put "down" for the store. Do not believe any number (dollars) that a franchisor shoots at you. Here in the DC metro are 7-8k means you are making less than minimum wage, but the franchisor is milking a cool 35,000 G's from your back pocket. Think about that for a second. Toasted subs will cost you 35 g's a year. You better be doubling that number in this area (can't speak for where you are of course) to be able to live decent. People, I know sometimes our jobs suck or we hate what we do, but don't let yourselves get caught up in the emotions of buying a business or franchise without objectively looking at NUMBERS and EFFORT. Who do you think will make that toasted roast beef sub for 100 customers when joe schmoe minimum wager decides to quit with 10 minutes notice? (happens ALL THE TIME) Voila! YOU WILL. Don't know about you , but making 5-6 bucks an hour making sandwiches all day and RUNNING the business is my idea of a bad investment. DUE DILIGENCE!! Do your homework pleaz pleazzzzzzzzz Peace

Craig Hsueh
Craig Hsueh

This revelation on a Quizno's break-even point and difficulty with profitability. This is big news that the traditional trade journals just do not want to cover. I see that a blogger on Blue MauMau (www.bluemaumau.org) calculated from the sheet that on average roughly 50% of the stores are not profitable. There is a range in the estimate. The higher end of the range puts unprofitable stores significantly higher. It's too bad this information is only available for those in-the-know on the blogosphere because the mainstream media of franchise magazines and small business magazines sure will not rock the boat of their advertisers with such truth. Heaven forbid! It's up to us here in the blogosphere to build enough comments and mass to be noticed. Franchise bloggers of the world, unite! Tell the truth.

Ryan
Ryan

That's quite an admission. Do you think Quiznos will be adding that disclosure to their sales pitch next? ;)

Former Owner
Former Owner

More proof of a failed business model. See 14th paragraph of this Rocky Mountain News article. http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_4319088,00.html FROM THE ARTICLE: In a December 2003 court filing, Quiznos' attorneys argued that the company's profits were falling below expectations because of increased expenses due to competitive threats from Subway, McDonald's and Arby's. "Looking forward, these trends are getting worse. . . . Forty percent of Quiznos' units are not breaking even, and same-store sales increases are down."