Franchise PR Done Poorly: A Case Study on the Struggles of Quiznos

Public relations (PR) is essential for building and maintaining a positive brand image, fostering customer relationships, and navigating through crises. For franchises, effective franchise PR can be the key to growth and sustaining a competitive edge in an industry that thrives on consumer trust and loyalty. However, when PR strategies are mishandled, it can lead to severe repercussions, including brand damage, declining sales, and irreparable harm to franchise relationships.

In this essay, we will explore how Quiznos, once a dominant sandwich franchise, experienced significant PR missteps that contributed to its downfall in the competitive fast-casual dining industry. Through a series of poor PR decisions, Quiznos failed to manage its relationships with franchisees, customers, and the media effectively, ultimately leading to its decline. By examining the PR blunders that plagued the franchise, we can understand how a lack of transparency, poor crisis management, and disregard for franchisee concerns can impact a brand’s long-term success.

1. Quiznos: A Franchise on the Rise and Fall

Founded in 1981 in Denver, Colorado, Quiznos quickly became a popular choice in the fast-casual dining segment. Known for its toasted sandwiches, the brand rose to prominence in the late 1990s and early 2000s. At its peak, Quiznos had more than 4,000 locations in the United States, and its growth strategy focused on aggressively franchising across the country.

However, despite its early success, Quiznos began facing mounting challenges in the following decade. By the mid-2010s, the brand had significantly contracted, with the number of locations dropping to just a fraction of its former size. Several factors contributed to this decline, including changing consumer preferences, increased competition, and internal mismanagement. However, poor PR decisions, particularly in the way the company handled its relationships with franchisees and its messaging to consumers, played a significant role in Quiznos’ demise.

2. Key PR Failures at Quiznos

2.1 Lack of Transparency with Franchisees

The relationship between a franchisor and its franchisees is one of the most important aspects of a franchise system. Franchisees invest their capital and trust into the brand, and in return, they expect the franchisor to provide strong support, effective marketing, and transparency regarding financial and operational matters.

One of Quiznos’ biggest PR failures stemmed from its lack of transparency with franchisees. As the company expanded rapidly, franchisees began to voice concerns about rising fees, high costs, and declining support from the corporate office. In the early 2000s, Quiznos implemented significant increases in franchise fees and the costs of supplies, which put immense financial pressure on the franchisees. This, coupled with a lack of open communication and engagement from the corporate office, created a toxic atmosphere among Quiznos franchisees.

By 2007, many franchisees were vocal in their dissatisfaction, and a number of them took legal action against Quiznos. Franchisees claimed that the company was more focused on expanding rapidly rather than supporting its existing locations. This led to negative media coverage and a perception that Quiznos was more interested in profiting from new franchisees than ensuring the success of its current network. Instead of addressing these concerns head-on, Quiznos failed to engage with its franchisees in a meaningful way. The company’s lack of transparency and responsiveness contributed to a sense of mistrust and frustration among its franchisees, damaging the brand’s internal relationships and eroding its reputation.

2.2 Poor Crisis Management and Response to Negative Press

When a crisis occurs, particularly one involving a brand’s reputation, effective PR is crucial to controlling the narrative. How a company responds to negative media coverage can have a lasting impact on its reputation. Quiznos’ failure to manage its crises effectively led to a series of PR blunders that exacerbated its problems.

One example occurred in 2006 when reports began to emerge about the high costs associated with opening and operating a Quiznos franchise. Negative press began to swirl around the company’s aggressive expansion tactics, which were seen as exploitative by many. Despite the growing complaints from franchisees and negative press coverage, Quiznos failed to take swift and meaningful action to address the situation. Instead of proactively engaging with the media or franchisees, the company remained relatively silent, allowing the negative press to build momentum.

Additionally, Quiznos faced challenges in handling public controversies around its marketing campaigns. For example, in 2004, the company ran a marketing campaign featuring the “Quiznos Spongmonkeys,” a set of bizarre animated characters that many found off-putting and confusing. While some viewed the ads as quirky and memorable, others found them unsettling and bizarre. This led to a backlash from consumers and media outlets, creating a PR nightmare. The Quiznos marketing team failed to anticipate the negative reaction and did not adjust its strategy in a timely manner.

Rather than using these opportunities to respond creatively and positively, Quiznos allowed negative media narratives to dictate its brand image. Effective PR could have turned these setbacks into opportunities for engagement with customers and franchisees, but instead, the brand appeared to be reactive, failing to manage its image in a way that would minimize the damage.

2.3 Failure to Adapt to Changing Consumer Preferences

The foodservice industry is highly dynamic, with consumer tastes constantly evolving. In the early 2000s, Quiznos was able to capitalize on the growing demand for healthier, fresher fast-food options with its toasted sandwiches and salads. However, as the industry shifted toward healthier, more sustainable food choices, Quiznos struggled to adapt its menu and PR messaging accordingly.

The rise of brands like Chipotle and Subway, which offered fresh ingredients and healthier alternatives, signaled a significant change in consumer preferences. Quiznos, however, failed to clearly communicate its commitment to health and sustainability. The company continued to promote its heavily toasted sandwiches and high-calorie offerings, which put it at odds with the changing desires of health-conscious consumers.

Rather than embracing these shifting trends, Quiznos maintained a static menu that failed to attract new customers. Its PR team missed an opportunity to position the brand as a more health-conscious, sustainable option in the fast-casual dining space. A PR campaign that highlighted the use of fresh ingredients, the removal of artificial additives, or partnerships with local farmers could have helped Quiznos regain consumer trust and attract a new demographic. Instead, the company’s PR efforts focused on irrelevant or outdated messaging, leaving it behind in the competitive market.

2.4 Misleading Marketing and Unclear Brand Messaging

In the fast-food and quick-service restaurant industry, clear and transparent brand messaging is essential. Consumers must understand what a brand stands for and how it differentiates itself from competitors. Quiznos struggled with its messaging, often sending mixed signals to consumers about its identity and offerings.

One of the most significant issues in Quiznos’ marketing was its attempt to compete directly with Subway, which led to a confusing brand identity. Instead of differentiating itself based on unique qualities or values, Quiznos relied on price-based messaging and promotions to attract customers. It touted the quality of its toasted sandwiches, but it failed to establish a strong and unique value proposition beyond that.

As a result, Quiznos became synonymous with being a Subway competitor rather than a brand with a distinctive identity. PR campaigns that emphasized the brand’s uniqueness or its commitment to quality, local sourcing, or community involvement could have helped Quiznos build a more loyal customer base. However, the company’s unclear messaging left consumers unsure about what Quiznos stood for, diminishing its appeal in a crowded market.

Additionally, Quiznos’ reliance on price promotions, like the “value menu,” only further diluted its brand and led to a perception that the sandwiches were cheap, rather than high-quality or premium. While price promotions are a common tactic in the fast-food industry, they are a poor substitute for building a strong brand identity. Consumers in the fast-casual market tend to prioritize quality over price, and Quiznos’ focus on discounts rather than highlighting the unique qualities of its food failed to resonate with its target audience.

2.5 Social Media Mismanagement

In the digital age, social media is a crucial component of any PR strategy. A well-executed social media campaign can boost brand awareness, engage customers, and help a franchise connect with its audience in real-time. Quiznos, however, struggled with its use of social media platforms. The company’s social media presence was inconsistent and often lacked authenticity.

In 2013, Quiznos launched a Twitter campaign asking users to tweet about their love for the brand in exchange for discounts. The campaign backfired when users responded with sarcasm and criticism rather than enthusiasm. Many consumers tweeted negative comments about the quality of Quiznos’ food and their poor experiences with the brand. Rather than turning these criticisms into an opportunity for engagement and improvement, Quiznos’ PR team failed to respond in a meaningful way, allowing the negative comments to go unaddressed.

In the world of social media, where transparency and engagement are key, Quiznos missed an opportunity to turn customer feedback into positive PR. The brand could have used this as a chance to listen to its customers, respond to complaints, and offer solutions. Instead, it allowed its social media channels to become an echo chamber for consumer discontent, further harming its reputation.

3. The Consequences of Poor Franchise PR

The failure to manage franchise PR at Quiznos had long-lasting consequences for the brand. The company’s inability to address franchisee concerns, communicate effectively with consumers, and respond to media crises contributed significantly to its declining fortunes. As franchisees began to struggle, more and more of them left the system or filed lawsuits against Quiznos. This eroded the brand’s credibility and led to a contraction of its franchise network.

Consumer trust, once damaged, is incredibly difficult to rebuild. Quiznos’ PR blunders contributed to a loss of customer loyalty, making it more difficult to compete with better-managed brands. As Quiznos shrank and struggled to remain relevant, its competitors, like Subway, Chipotle, and Panera Bread, capitalized on its missteps by adopting smarter, more consumer-friendly PR strategies.

Ultimately, Quiznos’ PR failures became a case study in how poor communication, lack of transparency, and failure to adapt to changing consumer needs can spell the end of a once-thriving franchise. The lack of clear brand messaging, poor crisis management, and misaligned marketing strategies allowed Quiznos to become a cautionary tale in the world of franchise PR.

4. Conclusion

Quiznos’ franchise PR failures illustrate the critical importance of effective communication and brand management in the franchise world. The brand’s decline can largely be attributed to its inability to handle crises, failure to adapt to changing consumer preferences, and lack of transparent communication with both franchisees and the public. The franchise’s downfall serves as a reminder of how poor PR can damage a brand’s reputation, alienate key stakeholders, and ultimately lead to business failure.

For franchises, the lessons learned from Quiznos’ mistakes are clear: maintaining strong relationships with franchisees, adapting to consumer trends, and managing crises effectively are all critical to long-term success. Franchisors must recognize the power of PR in shaping brand perception and actively work to cultivate positive relationships, foster trust, and remain responsive to changing market demands. By doing so, franchises can avoid the mistakes of Quiznos and build lasting, successful brands.