Built a differentiated alternative to Subway with toasted subs, melted cheese, and premium positioning. The product was legitimately good and consumers loved the quality upgrade. Rode the fast-casual wave perfectly in the late 90s and early 2000s.
Quiznos made most of its money selling food to franchisees through a captive distributor, not royalties. Food costs hit 40% versus 30% at competitors. They aggressively opened competing locations near existing franchisees and collected upfront fees. The Great Recession hit, margins collapsed, and franchisees revolted with $300M+ in lawsuits.
Chapter 11 bankruptcy in 2014. Shrunk from 5,000 stores to a few hundred. Brand became irrelevant with no marketing budget. The death spiral complete.
