Did Quiznos Even Read Book Included In Their Training Kit?

We have to wonder whether it’s a cruel joke or if anyone at Quiznos actually read McDonald’s: Behind The Arches, a book they include in their Quiznos University Training Kit.

We stumbled over this passage on page 43 (emphasis added):

In all other food franchising schemes, franchisers made their profits before their franchisees did, either by selling franchise territories to investors for huge up-front fees or by supplying franchisees with food, paper, and equipment—typically at markups that were higher than they would pay on the open market…. Kroc instinctively knew that making an easy killing at the expense of his franchisees would not produce anything that would last…as a veteran salesman Kroc knew he was also in business to serve his franchisees and build loyalty with them. They were his customers, too, and if they failed, he failed.

Letting franchises prosper? Not forcing franchises to purchase food from the company at a high markup? Maybe Quiznos should steal a page from its own training kit. — BEN POPKEN

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  1. PatrickIs2Smart says:

    You guys are having too much fun with that Quiznos book.

  2. infinitysnake says:

    Geesh. My mom is a franchisee, and before she went with her current company, she wanted to open a Quiznos. Needless to say, she’s very relieved she didn’t.

  3. Kornkob says:

    The only question is this: is there any objective evidence that Quiznos is taking advantage of their franchisees?

    I mean, it’s one thing if they are forced to pay double the market value for plain old mayo but quite anotehr if they are forced to buy higher quality cold cuts— effectively being forced to pay premium prices for premium products, when the franchisee is aware that he can get cheaper cold cuts locally. That might build a perception in some franchisees that they are being taken advantage of, when there’s really nothing going on.

    I actually wonder if Quiznos simply has allowed too many under-capitalized franchisees to buy in thuis increasing the number of discontented owners because they bit off more than they could chew.

  4. rbb says:

    Ben –

    Anything in those manuals tht tell the owner/operator to cut the amount of meat in half when the customer uses a coupon? That’s why a lot of us in the office don’t frequent our local Quiznos any more…

  5. markymags says:

    rbb: Have you tried ordering, waiting for them to prepare your order, and then showing the coupon once your order was finished? I always show coupons after I place my order and it is done or close to done. That way my order is cooked/prepared and I do not have to worry about getting gipped on something. Just a thought…

  6. jblake1 says:

    Ben- If a franchise didn’t source through the home company for food how could consumers expect a Quizno’s to have a consistent product? If everyone sourced willy nilly it would damage customer expectations.

  7. SmoovyG says:

    @jblake1:
    The problem doesn;t come through Quiznos requiring franchises to purchase food from them or approved vendors, it’s rom the (allegedly) ridiculously high markups they’re attaching to the material’s price.

  8. Aeroracere says:

    In Soviet Russia, Book Reads You!

  9. WindowSeat says:

    @Kornkob: Here’s a quote from the New York Times dated February 24, 2007 in an article by Julie Creswell:

    Quiznos franchisees, for instance, are required to buy food from American Food Distributors, a company owned by the Quiznos corporation that acts as a middleman with food-manufacturing companies. In 2005, American Food Distributors received rebates totaling more than $33 million from suppliers, with $17.5 million of that going into the company’s national marketing fund, according to a Quiznos franchise document.

    A result is that Quiznos charges prices that are higher than what franchisees could obtain on their own, contends a lawsuit filed in Wisconsin in November that accuses the corporation of antitrust and racketeering violations.

    I’m pretty sure the under-capitilzed franchisee scenario you mention is likely as well. Quizno’s seems to have had a problem with over-selling territories, and not delivering approved sites in a timely manner; so it’s not a stretch to think that their due-diligence was sloppy as well.

  10. Cap'n Jack says:

    I guess this explains why I can’t find a Quiznos in my area.

  11. Bourque77 says:

    @Kornkob: Since they are forced to buy from quiznos approved vendors (quiznos owned companies) they have no barganing power. If they are shopping on their own they can threaten to use another supplier and the quiznos approved supplier would reduce the price. Since they can only buy from them though they can charge whatever they want because they know they are going to have to buy it.

  12. kerry says:

    @Shadgenki: Come to where I live. You can’t chuck a cat without hitting a Quiznos around here.

  13. rbb says:

    @markymags:

    That doesn’t work at our local quiznos. You order and pay first, then wait for your sandwich to be made. You can just see the manager’s face turn when you pull out a coupon.

  14. faust1200 says:

    I used to eat at Quiznos quite a bit. They used to have the best condiment on the face of the earth. It was called Italian Spicy Mustard and it came in little green packs. However (I was told) they stopped producing them. I never went back very often after that. At least at the one I went to, everything tasted good and was of good quality. I never get lettuce on my sandwiches because I simply don’t like it but I can tell you for a fact it goes on after they toast it. And I see them weighing the meat before they put it on the sandwich and the sandwiches were always amply meaty if not falling out of the bread. Although I remember one time I had a *1* dollar off coupon and when presented the manager looked like she passed a kidney stone. They had a promotion on their website where basically you could use anything for a dollar off – handwritten piece of paper, etc. My point being, I have never felt the cloud of evil in there but maybe I was just hungry.

  15. 3ZKL says:

    i used to always nominate myself to dodge 6 lanes of traffic to pickup quiznos for my former co-workers. simply because the guys working would always give me my sandwich for free. otherwise, paying 8$+ dollars for a veggie sub makes me want to file a class action lawsuit of my own.

  16. webwbr says:

    Don’t get too warm and fuzzy over McDonald’s… the McDonald’s Corporation mandates that they own all the land their restaurants sit on. While every other brand lets the operators own the land themselves.

    In the long run, you’d be better off in in a tough franchise agreement and own the land than in the McDonald’s deal.

  17. asherchang says:

    @PatrickIs2Smart: i second that.