Quiznos Subs looks like they might be in some trouble.
The company has missed a loan payment and is attempting to restructure their debt, and this is not the first time this has happened. As a result, the toasted sandwich chain has closed a significant amount of franchises, dropping from 3,000 to around 2,100, according to The Wall Street Journal.
Last year, Quiznos restructured their debt to avoid bankruptcy. Clearly that plan has not worked, as the sandwich company owes nearly $600 million to creditors.
So what’s changed for Quiznos? Subway is the world’s largest fast food chain, so the popularity of sub sandwiches is certainly not in decline. Perhaps Subway stole Quiznos’ thunder once they began to introduce a toasting option, which Quiznos had pioneered.
Or maybe customers were scared away after Quiznos ran a slew of commercials with these Sponge Monkeys a few years ago.
Either way, Quiznos apparently needs to reevaluate their business model (and possibly marketing strategy) to bounce back from this.