As a follow up to our previous article regarding Quiznos and the importance of legal representation, the QuiznosSucks.com owner posted his (claimed) financial results from owning a Quiznos franchise:
Topic: How much a Quiznos earns
Posted by: XXXXXXX
Date/Time: in 2005I am a Quiznos franchisee. Here is a breakdown of how much a franchisee can potentially earn — or not earn.
The figures are not necessarily BAD, I guess I just wish someone gave me these hard figured BEFORE I bought one.
If a store earns $40,000 / month: 7% Royalty $ 2,800 1% Local Advertising $ 400 3% national advertising $ 1,200 20% Labor $ 8,000 29% Food $ 11,600 3% Paper $ 1,200 .3% Accounting/Payroll $ 300 10% Rent/CAM $ 4,000 2.75% Insurance / Misc. $ 1,100 5% repay SBA loan $ 2,000 4.5% misc bills (utilities, etc) $ 1,800 .5% Spoilage $ 200 1% Supplies $ 400 1% Promo Food $ 400 1% Comp Food $ 400 2.9% Credit Card Fee $ 1,160 .4% Coupons $ 160 .5% Food Waste $ 200 No one has any control over %. They are fixed and that is that. So if a store is lucky enough to earn $480,000 annual, the owner can expect to walk away with a profit of
9.4% = $45,120[edit by Ryan Knoll: I believe this should be 7.15% = $34,320 based on the numbers provided]. No one is going get rich off of that. Of course if an owner can get cheaper rent, and increase sales, it will be of great benefit.The average store seems to be about 1,500 – 1800 sq ft. and the going rate is $17.50 – $30.00 sq ft + $5.50 – $8.00 CAM.
That looks reasonable to me and should be considered by anyone buying an existing or new franchise. People often forget the expense of promos and coupons, credit card fees, insurance, and payroll expenses. The pretty picture the franchise sales rep paints for you often is the “best case” scenario.
Well, you might think, “That’s a 18% return on my investment of $250,000! I’ll take it!”. That’s not an accurate reflection of your actual return. Those results assume you are working at the franchise full-time and do not include your or your manager’s salary. So, if you think your year’s effort is fairly compensated at $45,000, then your real return on your investment is ZERO (actually it’s negative because you could be making 4-5% in bonds).
Similar Posts:
- Update to “What a Quiznos Franchisee Makes”
- More Quiznos Franchisees Can’t Turn A Profit
- Cash Discount for Customers
- Paychecks via Debit Cards
- Quiznos Sales & Profitablity – Summary Report
Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
I don’t get how you guys are selling at least 5-6k a week and not making any money. I own a Frozen Yogurt Shop. My biggest selling month was 12k FOR THE MONTH in July. I’ve had 1 month where I sold only 2k and some 4k in the dead of winter yet I am making a profit and no where near going out of business. If I sold even 3-4k a week for the year, I would be swimming in moolah; you guys make me wonder.
What is the frozen yogurt shop franchise?
i think you are full of bull i bet if you only did 2000 a mo you still would bs you made money don,t pass this kind of crap aound.
the reason you dont make money with quiznos is because the corporation is very gready and there food prices is very high not allowing the franchaisee to survive …
Not even executives feel good about working at corporate Quiznos. Look at the revolving door that goes right to the top of this corrupt company, including changing the CEO FIVE times in just two years……Not a stable operation at all. Steve Schaffer booted out for Wonder Guru Greg Brennerman, who spent all his time battling lawsuits and class actions before he runs away to rebuild his reputation elsewhere. Then lowly Dave Demo is the next lamb offered up for slaughter..a mere few months later his charade is up. Now its come full circle, the original Con Man Rick Schaden is back at the helm…offering up his own damage control “” loves his hands on involvement” to any PR media that will listen to his Bull shit.
All the while, he’s just buying time to find a new leader. A few months later Ricky must have been desperate to leave his own position, put all the while there isn’t any highly toted CEO in America that would take on this train wreck. So where does Ricky look next? Canada. And brings down Greg McDonald, the corrupt Canadian equilivent and Yes man of Ricky himself. How sad. More crooked leadership to look forward too. He’s the same guy in the middle of the Canadian Class action who said to the franchisees after loosing the last round in court…..we’ll just stretch this out for years…… Nice touch from the New Leadership. Think he’s got the franchisees interests at heart??? Same old Same old. This company will go bust eventually, but only after the top dogs have squeezed out every last penny out for themselves.
Amen!
you sound like someone who owned a Quiznos and ended up on the receiving end or maybe someone who worked for the co. Anyways, your view on the matter is pretty accurate. Thank you for the enlightenment.
A friend of mine owns a strip center ( in Florida) and currently there is a Quiznos in the center that closed 6 months ago.
The traffic count is over 90000 on this road and there is a Blockbuster in the strip but not a very vibrating store.
My friend claims that the store did $1800 daily and went down to $300.
The owner is a Doctor and it is said that he did not manage it right due to time restrains.
I believed the story until I found posts like yours.
The landlord wants $15000 to turn in the key and all equipments are fully in place.
The space is 2200 sf and the rent is $25 including cams.
I called the rep and he said they want half of the franchise fees and I will have to send in an app before they talk any further.
I am thinking to tell the rep that I am taking over the store to operate a sub shop under XYZ name. I will only consider Quiznoz if they cut me some slacks, for example on some of the fees for at least one year and no personal guarantee both for franchise and the lease. I also would want to get their guarantee not to open anything within certain distance. I think these points should not be negotiable on my part, although it is almost impossible to get them to agree.
I would appreciate if anyone could give me some advice.
Considering the low costs to start, what are my risks?
Thanks
DO NOT DO IT!!! Q Corp. BAD BUSINESS
Dude, if you’re not getting it by now, you’ve got bigger problems. Run away, R U N A W A Y from the evil doer Quiznos. Neither party (Quiznos / landlord) will cute you slack on the personal guarantee. That is how they hold you to the fire. And it will be a fire. It will be hell on earth. Quiznos to is parasite. They will latch on to whomever and suck you dry. When you are dead, they simply move on to the next victim and suck them dry (ie. take all your money). It is a evil, EVIL empire. There are no words in the English language to properly convey how evil the Quiznos organization operates their business model.
my friend i own a quiznos in miami and i am telling you do not buy a quiznos franchise…they are very greedy and would not cut any deal with you…invest in something better than quiznos…i am hearing rumors of bankrupcy…we are all crossing our fingers good luck
Hi, I’m thinking of doing a co-brand concept in NJ that includes a blimpie and potentially a water ice or ice cream (preferably Ben & Jerry’s). I know this is a Q website but the figures look very similar to the numbers posted above. My investment would be somewhere near 175K because I’m not buyign anything new and I’ve bargained the heck out of everything. My rent will be 40K / year (3333 / mos) and I’m thinking with the co-brand, my expenses would be divided and, thus, less than a single concept enterprise. I am still concerned with all the stuff you hear and read and so I wanted to get ppls thoughts.
Chad
Your numbers make no sense. You state your biggest month was $12k in sales but later state “If I sold even 3-4k a week for the year, I would be swimming in moolah; you guys make me wonder.” $3-$4K per week is well over $12k per month on the lower end. If your going to “brag” about rolling in moolah, provide some numbers or better yet, look for somewhere to post your BS. Comparing a sandwich shop to an ice shop is comparing apples to oranges.
Hi I own a quiznos in california. I want to sell it cos I am going to grad school. very nice location. close to the 210 freeway. next to walmart. sale is about 4k a month. If you are efficient aad can manage full time, you can expect about 3k net profit per month. The asking price is only 35k. If you are interested in pls email me at youngkokonut@hotmail.com thanks
LOL good luck with selling it.. in a thread dedicated on why you SHOULDNT buy one.
Tom wrote on November 6, 2009 @ 2:47 pm:
Sure they make sense, as I stated my biggest month was 12k. After reading through these posts, It seems as though Quiznos owners sell 5,6,7k+ a week, yet are cannot make a dime.
I’m not sure where my numbers do not make sense. Obviously if my biggest month is 12k and I stated IF, emphasis on IF I sold 3-4k a week which is less then half of most Quiznos, I’D be swimming in moolah. I am not saying I am making the big bucks but I am not close to losing my shirt. I just don’t get how you can sell 300k-400k+ a year and not make a dime while in my first year of business, I’m barely hitting 100k a year and still have cash flow.
Chad
Strictly looking at food costs selling yogurt is WAY more profitable than selling sandwiches. For example you sell 1 cone of yogurt for $2.00. Your food cost is what, 0.18cents? That leaves you $1.81 cents for everything else – paper, employees, utilities whatever. I own a Quiznos. We have a 2 for $5 promotion (2 items for $5). Already with this promotion there is heavy discounting and my food costs are 37% on average BEFORE the discount so I’m left with $3.15 right? WRONG because Quiznos has sent out coupons that say 50% of 2 for $5 special – so now what does that leave me with? 0.65cents. If you think it ends there you are WRONG!!! Then there are the people who come in with the Quiznos corporate coupon that says “Get a FREE 2 for $5.00″. FREE!!!!!!!!!!!!!!!!!!!!!!! Are you friggin kidding me???!!! Is Quiznos covering the FREE food we are giving away? NO And to top it off, they didn’t give me my food rebate this quarter!!! This doesn’t include all the other coupons that are out there. If I don’t take the coupon the customer leaves my store and tells all their friends that I suck. I have increase foot traffic but how many sandwiches do I have to sell to make the same profit as 1 yogurt. Oh yeah, and because I have increased foot traffic I have to have more employees so my labor goes up too. Who benefits from inreased food costs? QUIZNOS.
I’ve had my store for 4years. I am in a decent location so I should be able to hold-on but Quiznos puts up all these obstacles. I don’t know how others are still able to make it who are not in better positions. I pray Quiznos goes bankrupt and I’m let out of my agreement.
Has anyone been successful in getting out of their franchise agreement? (without selling or going bankrupt) If so please let me know who your lawyer is! I really want to stay in my location but have my own concept.
BTW, Quiznos sucks so bad that their new tactic to get new franchisees is to get them to sign on for re-opens. They are vultures!!!!!!!!!!!!!!! Also, the franchise fee is now $12,500
Chad,
You must not be reading the posts from all the other owners. Again ice cream is not sandwiches. On an average week, I would do $8000. Food was running 30% and Labor was 18-20%. Paper cast was 3-5% and royalties were 11%. Discount percentage was 6%-10% Right there, 65%-70% of revenue is gone. Don’t forget about rent, electric, gas, accountant fees, advertising not covered by royalties pest control, and maint just to name a few cost. Not much left at the end of the day.
i own a quiznos and really sucks…
I am a classic entrepreneur, involved in numerous businesses throughout my life, some ventures have been better than others, many have been quite successful. I bought into two Quiznos stores 7 years ago and can honestly say they have turned out to be far and away the worst buiness mistakes of my entire life. I sold out this year after giving them away – and I mean giving them away – and was never happier to walk from
$ 450,000.00 of lost investment. I’m fortunate enough to have other income to off set the Quiznos fiasco. I can’t believe how a good product can be bastardized so much by corrupt management practices, evident in the mountain of ongoing litigation and class action lawsuits. Irregardless of the decreasing up front franchise fees and start up costs ( a red flag by itself) any new buyer will still be subject to a on-going system of deception. Nobody who has the opportunity to read this blog should ever consider being enticed by Quiznos – at any price. Spend your time and money elsewhere.
So your telling me after the 65-70% paid, your left with around 10k to pay rent, etc. So rent is 3k. You got 7k left for everything else. Not too shabby in my books.
Tom wrote on November 21, 2009 @ 5:00 pm:
Chad..
OK, you have $7000 left to pay electric, gas, SBA payments, etc you would be left with $2000-$3000 per month or a 6%-9% return and I was a GOOD store. It sounds like you have it all figured out that you can make a ton of money and everyone else on this site is a jacka$$. There are a lot of jacka$$ owners out there but there are also a lot of good ones that have been taken. From your retorts, I assume you work for corporate and defend Q at all cost. You seem to be so convinced that owning a Q is a profitable venture. I was in your shoes several years ago. I bought one and learn more in those 2 years than I did my 4 years in college. I also learned corporate America isn’t such a bad gig. Why take all the risk for a lot less money. Go to your local Q and offer to buy their store. Owning a Q has driven many people to bankruptcy and one know owner to suicide. Buy a store or two, sink everything you have into it and tell us how good you are doing in a year. Until you have been through the process, don’t be such an arrogant cock$ucker and think you know more than any owner on this form.
I’m in the process of purchasing an existing Q. This store is making over a million in revenue per year. The adjusted net is 80K with an absentee owner. I think it all comes down to location. It’s located down town in a busy city. I’m certainly a little wary about Q because of all the negative press, but again, this store has been consistent in profits.
then why would they be selling. Run RUn RUn the other way!!!!
AND RUN FAST!!!!!!!!!!!!
I have been involved with a few burger franchises. I must be honest I know very little about Quiznos except I don’t like their sandwiches and I have heard they have had legal trouble because franchisees are having their territories infringed upon. I recently got into a fitness franchise called illuminate gym that I am very happy with. The business model may not produce as much gross capital but the bottom line is much larger than any food franchise I have ever seen. There are undoubtedly a few rare scenarios where people make a lot of money with a single location when dealing in food. However, the initial investment is always hard to catch up with. The other issue I had owning my own burger franchise was theft which isn’t really covered in the table above. When opening a business you always have to consider who will be representing and running your business. A lot of my food loss was due to people stealing from me. Today I own a business with a skilled and educated staff in the field they now work. It has been a breath of fresh air. If you want to check out illuminate gym you can see it at http://www.illuminategym.com/franchises.php. Thanks.
Are Quiznos franchises usually profitable if you acquire the franchise at resale for basically nothing (less than $10,000)? I’ve heard people giving away Quiznos. If my cost basis is 0, are these still losers?
If someone paid you to take a Quiznos…RUN LIKE YOUR HAIR IS ON FIRE!!!! This company has calculated ways to steal your money since 2003, they are not a company that sells sandwiches…they are a company that sells franchises every last item that they REQUIRE you to buy to be in business at well above what you can acquire if for elsewhere…Musak…$40 a month ($20 direct from the company) fake Prime Rib for $4.39lb (actually neck meat that retails for $1.59lb) a POS system that you get to pay $3000 more than they normally sell for…every single thing they require you to buy is marked up and run through their fake companies masquerading as vendors. Every thing about Quiznos if FALSE. Most of their practices are illegal. I think it is only a matter of time before we see a bunch of these crooks that cooked the whole thing up…IN JAIL. Don’t take one under ANY circumstances!!!!! It is indentured servitude…NOT owning your own business!!!
Quiznos closed 3,500 mom and pop stores last year and turned them over to people who they made special deals with to be multi site owners. They will take your money….run you out of business and then just resell your store to one of their minions.
You would be wiser to do business with the MOB!
you are doing business with the mob.
You ARE doing business with the mob!!! The last lawsuit charges them with racketeering. Run!!
YES, YOU WILL LOSE EVEN IF IT IS GIVEN TO YOU, FOOD COSTS ARE INCREDIBLE
So I have been mass emailed about franchise opportunities with Quizos starting at 12,500$.
I thought, wow that is really low. What is the problem?
They are calling it: “re-franchising”
What does that mean and what happened to the current owners?
Sounds like they have some serious, company- franchiser relations.
Answer: the past owners went out of business, which should serve as a blaring red flag to you.
Answer: there have been and continue to be a large number of lawsuits re franchisor/franchisee relations
Why not purchase from a reputable franchisor? Do your homework.
I’ve seen a lot of post saying, “Is buying a store for $xxxxx a good deal?” or many other questions about buying a location. If you’ve read through all the post, why would you want to buy. I paid about $250,000 to open my store. I got $50,000 from the landlord to finish out, $150,000 from an SBA loan and the rest from me. I sold my sold for $180,000 and considered myself lucky. I probably broke even once you consider the money I took out of the business but overall I worked for 2 years for free. If the current owner handed me the keys today for FREE, I would not take it. It’s not worth the time and hassle. The bad stores out weigh the good by 10 to 1, at least. Take a look at a lot of the owners and you wll see the only screening Q really does is the money test. If you got enough for the initial fee, you’re in. Most people who own store are disgruntled people from the Middle East or India who are cheap to begin with. Their idea of making money is to skim on products and hire cheap employees who have bad attitudes. It ruins the overall experience. I won’t go to my local stores because both of them are run by cheap foriegners who skim and have bad service.
DON’T DO IT
If you sold your store for $180,000 you are one of the few lucky ones left in the company. A friend of ours bought one a couple of years ago for $300,000, and paid Q Corp $10,000 to protect his territory. Last year Q Corp talked his landlord into locking him out of his own store. Another Q owner tried to buy the store from his bank for $80,000 so the guy would at least be able to walk away without a huge debt…The Q denied the buyer and sold his store to a multi site owner for $20,000 the guy who paid $300,000 got nothing out of the sale and lost his entire life savings…not that it matters, but that guy was physically handicapped as well….So the Q doesn’t care who they screw over.
new news. the multi site owner now closed this store and many of his other stores too!!! We are talking stores that earned 12,000 a week and more. What does this tell you? He got them for next to nothing and yet he has all 8 stores up for sale for even less. He just wants out of it all.
Those mailing you recieve in the mail for a Quiznos oppurtunity are bull$hit. Dont be stupid people. Please. Do your reserarch and stop listening to Quiznos corporate. Of course they want to sell you a franchise and make money and earn royalties every week, but do your own research and have a god damn brain. Stay away from Quiznos, no matter how dirt cheap they offer you a franchise.
I am white and speak english. And corporate doesn’t care about any of us.
The BS own your own business in 90 days with as little as 12,500 down.
Is a rip off. They have put hundreds of owners out of business and into bk.
They will take your 12,500 and in house finance 50,000 for the business.
When it cossts them zero. They are stepping in and stealing the closed stores equipment for a penny on the dollar. If they change there ways of doing business the stores won’t have to close. But bad economy road construction and low cutomer base you have no choice. You will struggle to keep food costs at thirty percent because of the most complicated menu in all the qsr’s you have to purchase to many items at no profit. You can go to Restaurant Depot and save 50 percent on some items. But don’t get caught!
These people will get theirs some day. A store closes near your home the owner is upset his friends and family and there friends and fanily all quit going to Quiznos to eat. It just gets worse and worse. Buy a Subway the number one franchise in the world. They must know how to run this franchise.
Subway net worth is HUGE. Most people don’t have those kinds of dollars!!
am about to buy quiznos(reopen)advice
Dont DO IT!!!!
DATS A SUICIDE!!! DONT!!!
I guess you have not read the previous 200+ post. Don’t think you can change the business. I thought I could.
I have owned a store in Tx for 4 yrs, actually got online to place ad of store for sale. I now feel that that is pretty hopeless and will probably have to close soon. The last 4 yrs have been absolutely horrifying and I can not wait until the day I can walk away from it. My own area director had to close her store. Does anyone know if there is any new info on litigation against Quiznos?
I have owned 3 Quiznos Stores over the last 8-9 years and have actually been very happy with my investment. You really just have to make sure they are in the right location, as they say location, location, location is one of the keys to success in business. A lot of people go in thinking they can start a Quiznos store anywhere and everywhere and that just is not the case be cautious where your store is located, not in a small town and must be close to lots of offices, businesses, schools, sporting or entertainment facilities etc. These last few years have been rough for just about every business so everyone needs to just hang on with everything they have and those that do make it through will definitely be stronger in the end. I have eaten Quiznos for a long time and The Food is in my opinion VERY GOOD especially when weighed against Subway (crapway), Taco Bell, Arby’s, Burger King, McDonalds, etc. and you just get FULLER and feel better after eating QUIZNOS food. I do not work for the corporation or really care about the corporation themselves as a whole because I try to focus on my stores and my customers primarily. If you can buy a store cheaply (pay cash) and it is in a good location and good rent It can definitely be a good investment just hold onto it, build the sales a little and it’s reputation. Once this economy turns around you can sell it and make some pretty good profit while making a salary in the meantime (I usually work around 40 hours a week and always have and I do draw a salary). Good luck to all and I will continue to enjoy Quiznos subs, salads, sammies etc.
Definitely corporate…see”I do not work for corporate, blah, blah, blah…”
yes definitely a Corporate slave.. phuk quiznos.. they suck. I am a owner as well and i really advise all the ppl who’s thinkin about buyin a quiznos. DON’T!!!!! They are like the NORTH KOREA OF THE FRANCHISE BUSINESS!!!!!! Your store will not be owned by you even if you’ve bought it.. it will be owned by corporate. think of it as like you paid sh*t load of money to become corporate slave. They will alway be on time on taking the money from you… but never refund or credit back to you. All the corporate foos should watch your back.. once im done with this quiznos sh*t, dont see me in the street.
bet ya 10 bucks you work for Quiznos to write this
Any owners out there who are angry about corporate taking away (stealing) our food rebates?
I still didnt get my food credit for returning the soup last yr. Remember the time they sold us CONTEMINATED SOUP!!! and just simply send us email saying return all the soup cuz they are conteminated and will get credit back to you? and we have to take all the shit from the customers for their phuk ups…most importantely never give ur money back.. they only take it.. I swear.. they are like THE NORTH KOREA OF FRANCJISE INDUSTRY!!!! WE SHOULD SUE THEM FOR IT!!!
What rebate money? Havnt gotten any since we first opened!
I reported Quiznos headquater to BBB for their unethical business practices very recently. And for answe to how I want to settle the issue, I asked them to have Quiznos corporate investigated on royalties and I also wanted Quiznos to free my contract since I can’t trust their business practice. I believe this financial abuse by Quiznos must stop!! I don’t know if my request will get me anywhere but I think this will bring attention especially when Quiznos is under lawsuit settlement already. I suggest other owners to do the same so BBB will take this to deep consideration and help the helpless angry franchisees.
How many of you people had any GM time put in anywhere? Any franchise with one store is going to earn you from 5-10% depending on HOW YOU RUN IT. If you have one store, you damn well better be an owner/operator, because that is the ONLY way to make money. If you want to get “rich” you need 2 or more stores. Now to the percentages, food costs should be in the 32-34% range, that includes paper/spoilage/mistakes, your labor should run in the 20-24% range, and that should include your GM salary. Rent and utilities should be around 10% each, at least that’s what you shold shoot for. The royalty is 7% and the advertising is 4%, that all equals to 89%, leaving you 11% profit…and here’s a news flash, in the quick service/fast food business that’s pretty damn good. I have spent 15 years running other people’s stores, and made my owners LOTS of money. It has taken a LOT of hard work. I have also seen lots of stupid owners. You can’t just hire people and put them in a place an expect to make money. You should have a mix of college kids for your day crew, maybe a couple of elderly for prep and non-essential business, and some high schoolers for your night crew. YOU NEED RESPONSIBLE PEOPLE. If you have the wrong people running/working your store…YOU WILL LOSE MONEY!! Food costs will go up from free food given out to friends or being taken home, money shortages, poor customer service, and poor service times. I have worked for people who thought because they were “studs” in their primary business, they thought it translated into the food business…guess what, IT DOESN’T. If you have no experience in fast food, you have no business running a franchise. You would be better off finding a person who has done it, make them a partner, and get 2-3 stores…you’d expect to pay someone in the 50-60 a year range to have 3 store run well and for you to make money. Oh and for you degree holding whiners out there…your 4 years of regurgatation are not equal to years of experience. You can’t learn HOW to make a business successful from a book. I’ll be honest I’m thinking of getting into a Quiznos (I’ve grown tired of building other’s wallets), I’m doing my due diligence and have come to the conclusion the only way it’s worth it, is if my store/s can do over 375000 in yearly gross sales…which means LOCATION LOCATION LOCATION.
Billy, you forgot utilities, professional fees (accounting), pest control, and advertising on your own to name a few. Have you seen an electric bill in a southern state during the summer with an oven on for 10 straight hours? You’re a pretty arrogant pr*ick to think you have all the answers when you just run the store. You have no dog in the hunt so your opinions don’t mean sh*it on this board. Buy the store and before long you’ll be on the other side of the tracks. I thought I could change the business and ignored sites like this. Jump in…..misery loves company!!!!!!!
Ex owner,
Billy DID mention utilities AND advertising. Pest control? You should be doing your own bookkeeping, and accounting comes in only at the end of every important period. You can minimize the cost of this by having a well-organized store and all documentation and financials to back it up.
There are different types of franchisees out there and the success differentiation shows who they are. I bet Billy would run circles around your pathetic little store and highlight the arrogance of your OWN excuses.
Good luck Mr. Perpetual Victim
I HAD to use the accountants recommended by Q….didn’t have a choice. Pest Control was to keep bugs and rodents out of the store. I sold my “little store” for what I bought it for which not many owners can say. There are a couple of good stores but the stores going under or the stores that barely make it far outweigh the good stores. I made money and my store was in the top 10 for sales in my region up until the time I sold it. Without knowing me or Billy, you sound like the idiot. Until you own a store and you’re playing with your own money, don’t pass judgement on those who are playing with their chips, not other peoples.
bill you make me laught
I have been self employed my whole working life, and my wife is a registered nurse. My wife and I have owned a Quiznos for about a year now. When we opened we were doing about $17,500.00 in sales a week. Our labor costs were at between 9 and 14 %. We negotiated our lease ourselves, and are located less than a quarter mile south of I-10. Since opening, we’ve seen our sales decrease by about half. This is mainly due to other restaurants opening (Chineese Buffet, Otters Chicken, Sonic…). Our labor has risen to an average of 23%. If things remain “slow” we will break the $600,000.00 sales mark for the year. Our business loan is 95% secured by CD’s, and we pay our minimum monthly payment twice a month ($1674.00 twice =ing $3348.00). The interest we recieve from our CDs goes toward our note. Our investment will be paid in full in about 3 1/2 more years. I do not pay myself much (about $1500.00 a month), as I look at this as a long term investment. Once our note is paid out, I will pay myself the 40k I pay the bank, and invest about half of the 1.5k/month in another employee (high school/ college kid). The other half of the 1.5k/mo, I will save for “other costs” like maint & repairs, and the increase I will incur in my lease expense. The point is this—– Quiznos franchises do work, and most in my area are profitable. However, NO ONE can open a new Quiznos on a shoe string budget, PERIOD!!! If you really do your homework, run the numbers at worst case scenario, and can only break even this is not the business for you. No one gets into business hoping to break even. If you’re 100% financed it’s extremely hard to turn a profit. Evry restaurant that opens is your competition. Thank you, good luck on whatever you decide
Great comment. Do you work in the business full time? If so, how many hours per week? If not, how did you find a trusting manager when you aren’t there?
Most stores are in financial duress. Even if QCorp gave us the store for free (no loan to pay), we would be losing money each month. We are three franchisees that are trying to build a network of Q Franchisees to share ideas about reducing costs and increasing sales… and other business practices. With a united front, we can influence our destiny. We don’t want to be added to the list of 1000′s going out of business. Check us out at http://www.qfalliance.com.
Fellow Franchisees
That’s funny
Q. R GREAT….
I was strongly thinking of reopening a quizno in my town. Yes it was a closed shop, but it has been closed for 3 years and the writing was on the wall when it opened. The owners were lost from the start and quit both of their full time jobs to make it rich with quiznos. Now after reading all the comments I’m ready to run! Reopening cost are nothing compare to starting from scratch, but with a corp. group like that I may change my mind.
Help before I drop any cash! Any suggestions on a great franchise?
Yogurt sounds pretty good…. or you can hit up “Quiznos for sale” who posted earlier that he’s making a 75% profit with his franchise. If you need a good location, I have some waterfront property in Florida if you’re interested. :p
I keep reading all this negative info, But also see that no one said the food is bad. everyone likes the food. I am i South Florida, and I am interested in buying a quizno’s. will be operated by me full time. at today’s prices ( under 50K for a location ), and reported sales of aprox. 250k a year with rental in the neighborhood of 3K per month, is it possible to earn a descent living ? I can buy up to 2 locations at this price, but than, I will need a GM. I would like an input based on today’s market condition , pricing of location, pricing of product, and general market acceptability of the brand. is the brand suffers any consumer rejection ?? something that no one here has mentioned. scenario is pretty simple, like most past and current owners, I am trying to buy my family a job, so if I can invest 50K and work hard and get a 40K a year or better in income, it is not a bad proposition ? Feel free to let me know your thoughts.
hey my friend i have my quiznos for sale…i am asking 200k….my sales are in the 500k
David, at $250K year, you are losing money! It takes at least 7 or 8000/week to just break even! The food and labor alone are almost 50% of your profits. Add in rent, loans, utilities, sales tax, marketing, musak, cintas, security system, payroll taxes, credit card fees, etc. and you will have NOTHING left! Trust me on this! We made over $380,000 last year and have not even taken a paycheck since last fall! This is no joke!
I keep reading the same thing, over and over again.
No business, especially in food/beverage service, is likely, especially on it’s own, to be a gold mine. Lemme break down some facts for you. Food cost percentage, no matter WHO your supplier is, is 100% ABSOLUTELY, NEVER….NEVER…a fixed rate.
I personally know a couple Q owners, who keep their food cost below 25% consistantly.
Profits/hours worked? Please….please…tell me none of you forgot to do the homework part that says initial restaurant owners, average 60+ hours per week, for the first 2 years? That’s life in the industry. Can’t take it, or deal with it, find a new line of work.
I’ve seen sites like this blast a ton of franchises before. McD’s gets less heat than most, but any franchisee, especially a single location deal, had better expect to be putting in the hours.
23.6k annual Q salary, while a reopen is being paid off, +20% of profits…maybe and extra 5k a year, for a couple years, than 100%….coming in at nearly 50k a year….anyone who thinks that’s a bad start, for a single unit sub shop, didn’t do their homework.
Buying a single franchise, unless it’s a Hard Rock, or a McD’s, isn’t a good way to get rich. It’s a good base, to get you moving towards doing okay, and yes, often making less money, for more hours. It’s about owning your own business.
I was looking into a quiznos that is about to close in my area. They are always out of soda, various meats etc. and it is currently for sale for 50k. Manager says it could close up any day. Thinking about offering 5k plus the franchise fee. With no note and some leg work advertising I think I could at least break even. Rent is only 2100 a month and store bringing in about 200k annually. Any advise would be helpful. I’m not looking to get rich I really just love the subs and hate to see it close for good. Only one within 30 miles!
I owned a Quiznos for almost four years and worked my butt off! I marketed constantly, knew all my regulars and treated them like family, trained employees extensivly, worked myself 60-80 hours a week and the health department told me I ran a model restaurant.
After all my effort, I closed my shop last August and I personally lost over $400k and still owe $80k which I am making monthly payments.
I was under a area director who never once came to my shop or helped me in any way after begging for help several times, his name is Dave Cazar. He sent his employee Luz, to do inspections and to read to me out of Quiznos manual which I already read from cover to cover. I had to miss my Dad’s 75th birthday party due to an surprise inspection.
I could go on forever but what I want to say is DO NOT BUY A QUIZNOS! EVER! EVER!!!!!!!! You may end up broke, unemployed and depressed like me.
I saw this ad on a local broker’s site. It is obviously a Quiznos franchise. The cash flow looks healthy as a percentage of gross. I was interested until I saw this blog. Thougts?
Restaurant Franchise Listing #15108
General Location Worcester County
Current Status New
Terms of Sale
Asking Price: $115,000
Down Payment: $
Real Estate Value : $
Financing: Flexible financing available to a qualified buyer.
Financials
Gross Sales: $329,674
Cash Flow: $75,413
General Information
Established: 2004
Business Hours: 7 Days – 10am – 10pm
Employees: 3 – 5
Area Square Foot: 1,350
Description
Own a nationally recognized brand that’s CRAVED by millions at a discount price. Turn key opportunity to own this shop located in the heart of a commercial district. This store is very profitable. Reason for sale: Seller is pursuing other business ventures. This business offers a unique chef-inspired menu of delicious sandwiches, soups and salads that consumers love at an affordable price. Plus, you get the benefit of our multi-million dollar national advertising that’s like no other (radio, television, print, online, in-store) to make sure to keep those consumers craving more.
J.D.,
Please don’t do it! There is something seriousy wrong if hte shop only employees 3-5 people when Quiznos “rules” make you run a 4 person lunch shift so how many hours and how many days a week are these 3-5 employees working? Most of my employees were college or high school student that were only available part time, so you see, it just doesn’t add up. SAVE YOUR MONEY AND RUNNNNN.
JD. The consensus of this site seems to be that even taking over a q that you get fo4 nothing is a losing proposition. If they are asking $125k you should offer 1k. This includes $500 for the oven and $500 for tables and chairs. Even then expect to lose money. I hope you love the subs.
Quiznos has some awesome promos! Where else can you get a sub, chips and drink for $2.99, not even Subway!
http://www.quiznos.com/299mealdeal/
That is cheap. I can’t imagine that the franchisee is making a 25% food cost on that, however.
your problem is that your food cost is too high 32.4%. my food cost is around 24% paper 3%.
if you want to lose everything including your mind purchase a quiznos. oh yeah they’re real cheap right now but it doesn’t matter you’ll still lose everything.
I OWN A QUIZNOS NOW! I AM FEELING MAJOR PAYNE FROM THE LOSS,LIES,GREED THAT THIS COMPANY HAS PUT ME THROUGH! I HATE QUIZNOS!!!! DONT BUY IN! UNLESS YOU WANT TO COMMIT SUICIDE! QUIZNOS TAKES ALL UR MONEY AND LEAVES YOU IN THE STREET DYING! RUN!RUN!RUN AWAY!!!!!
Question for quizno’s owners, how much do you pay your management team? managers (if your not the manager), ast. managers, shift managers, etc. thanks.
It sounds like most are single unit owners working full time in the business so they only have one manager (themselves).
I am a GM of a penn station: east coast subs and my food/bread/produce costs are 20-22. The idiots who suck at running their stores run a 23 percent. I do not understand how anyone would pay 32 percent food costs in the sandwich business. On a good month all of my controllable costs (food/paper/labor) are under 40 percent. I was actually considering going into this, but I’m much better off getting a profit share of my restaurant.
So thank you all for your advice to stay away from this company.