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QU

Quiznos

restaurants
PE-OWNED

Toasted submarine sandwich chain.

PE-OWNED

Acquired by CCMP Capital2006-11-01

View PE Firm Profile

What Made It Great

Toasted subs with premium ingredients that taste better.

What PE Will Likely Do

Portion sizes of Quiznos' signature toasted submarine sandwiches will likely be reduced while maintaining or increasing prices

HIGH LIKELIHOODBased on: CCMP Capital's bankruptcy rate of 100% and known tactics of cost-cutting, debt loading, and underinvestment in operations

Quiznos will likely substitute cheaper, lower quality ingredients like lower grade meats, cheeses, and breads to cut costs

HIGH LIKELIHOODBased on: The restaurant industry playbook which indicates common PE tactics like portion reduction, ingredient substitution, franchise squeeze, menu engineering, and labor minimization

Quiznos will likely increase franchise fees and operational requirements for franchisees to extract more value from the business

HIGH LIKELIHOODBased on: The historical case of Quiznos' previous bankruptcy in 2006 following a PE acquisition

Quiznos will likely reduce menu variety and focus on higher-margin menu items, potentially eliminating unique or premium sandwich offerings

HIGH LIKELIHOODBased on: The historical case of Quiznos' previous bankruptcy in 2006 following a PE acquisition

Quiznos will likely reduce kitchen and service staff, leading to slower service and potentially less attention to food preparation and quality

HIGH LIKELIHOODBased on: The historical case of Quiznos' previous bankruptcy in 2006 following a PE acquisition

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Minor changes to Quiznos' menu, pricing, and operations begin, with some portion sizes reduced and lower quality ingredients introduced

6-12 monthsYOU ARE HERE

6 to 12 months months

Noticeable reduction in Quiznos' sandwich portion sizes and quality of ingredients become apparent to regular customers

12-24 months

12 to 24 months months

Regular Quiznos customers start noticing significant declines in food quality, with fewer unique or premium sandwich options available

24-36 months

24 to 36 months months

Quiznos store closures accelerate as brand reputation is damaged by consistent quality issues, and the company's financial struggles become more severe

36+ months

36+ months months

Quiznos faces potential bankruptcy or is sold to another operator, further eroding the brand's reputation and value proposition

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Be aware of potential quality declines in Quiznos' signature toasted submarine sandwiches, including smaller portions and use of cheaper, lower-quality ingredients

  • Monitor changes to Quiznos' menu offerings and be prepared for a reduction in unique or premium sandwich options

  • Consider seeking out alternative sandwich providers that maintain a focus on quality, fresh ingredients, and customer service

Alternatives

Darden Restaurants (Olive Garden, LongHorn)SAFE

Publicly traded restaurant group

Local independent restaurantsSAFE

Support local businesses in your area

Share this company's PE status

"Quiznos is now PE-owned. Here's what that means for you."