Ailing sandwich chain Quiznos recently managed to stave off bankruptcy by giving up control and shifting ownership over to private equity firm Avenue Capital, but will it now finally be able to rebound?
Quiznos’ woes began after a leveraged buyout in 2006 that left it with a pile of debt that totaled in the hundreds of millions. That, coupled with competitive pressure from Subway’s hugely successful $5 footlong subs, landed Quiznos in the gutter.
Now, it has to turn things around and completely relaunch its brand.
A big part of that will be a new national media campaign it will use as it eyes growth in many markets, reports Lisa Jennings at Nation’s Restaurant News.
Quiznos chief development officer Brian Belmont told NRN that the campaign will likely be similar to Domino’s brand relaunch. Essentially, Quiznos will tell the public that it’s back, and better than ever.
There’s no word yet from Quiznos about what exact form that campaign will come in. When Domino’s came back, its marketing was intensely self-critical — almost self-loathing at times. It used that message to show consumers that it acknowledged its screwups, and it’s doing everything to make sure that those mistakes didn’t happen again.
Quiznos is also trying out some new things at its physical locations to reshape the brand. A concept store in Portland, Oregon features a more “upscale design,” and includes warmer colours and decor upgrades. Plus, there will be a menu revamp in the near future.
Will it work? Well, with its debt restructured and ambitious new ownership that just invested $150 million, things are certainly looking up.
Management now has the time and freedom to focus on improving the Quiznos brand and its relationship with both customers and franchisees. But most importantly, it still has to execute.