Skip to comments.Toasty Or Toasted? Quiznos Follows Sbarro Into Bankruptcy [Obamanomics Fail]
Posted on 03/15/2014 3:53:14 AM PDT by SoFloFreeper
Restaurant chains are dropping like flies this week.
On Monday pizza franchise Sbarro dipped into Chapter 11 bankruptcy. Following in its footsteps on Friday, sub shop Quiznos announced that it too would sink into bankruptcy as part of a pre-packaged deal to cut its debt by more than $400 million, or two-thirds.
(Excerpt) Read more at forbes.com ...
I think it’s mostly the sign of lousy food. Subway is doing fine. Tim Horton is opening up new restaurants all over the place where I live. Sbarro serves tasteless glop and Quiznos is terrible, IMO.
Helping the middelclass, you all fell for it didnt you. If we dont turn this ship around in 2014 and hold all thier a##es to the fire, it is over johnny, it is over! The minority in this country believes they are the majority and most of the majority believes this to be true! amazing. A hard conservative right and a good house cleaning in all agencies is in order. The cancer cannot be treated with aspirin
Or the sign of a poor business plan. Sbarro tied it’s future to mall food courts. Malls are failing. Quiznos was deep in debt, probably due to the fact that they paid heavily to expand and support their franchises. The company has been shrinking for years. In 2007 there were 5000 Quiznos shops world wide. Currently there are about 2000.
raising the minimum wage and forcing over time rules will save the day!
As the margins for food service are usually the tightest, they will usually be the first to fail with a lagging economy. The reality is that restaurants are the highest percentage of failed businesses, hands down so it is just what I expected when the gas started to run out of the system that Obama is intentionally imploding.
Quizno’s IMHO has lousy food. Just like Sbarro. If you serve bad food, even if there was a pro-business person in the White House and the economy was growing at 200% a year, if you have lousy food, no one will eat it. In downtown Tampa, Quizno closed, but other restaurant are busy.
One, if not the, dumbest ad campaigns for food I’ve ever seen. Good riddance, craphouse.
Sbarro, $8.00 for a slice of pizza and a soda at the mall. First and last time for me.
“Or the sign of a poor business plan. Sbarro tied its future to mall food courts. Malls are failing.”
Any business that sells anything that isn’t a necessity is failing; they’ve been losing business for years.
I think for most Americans, the idea of eating out has gone the way of the dodo. In my area we’ve had restaurants shut down, in some cases replaced by South or Central American restaurants for the immigrants (legal and otherwise). As these immigrants fill the void left by the low American birthrate, they are the new consumers in the economy. Their restaurants are cheap, seemingly unregulated, and cater to people who know how to stretch a buck.
I agree in terms of lousy food. Couldn’t stand either one of them. And, I don’t eat Subway either. I used to really like Subway, but in the last 10 years or so, can’t stomach their food.
I liked Quiznos because their sandwiches were good. However, they had the pepper and sauce bar. Anyway, the last few times I went there, it seemed they did not want to maintain the pepper and sauce bar. Either it was empty or old looking. So I stopped going.
America is dying, and facing the collapse of our dollar, our stock market, our economy, our military, and the basic decency of our society.
I know! Let’s raise the minimum wage! Yeah, that’s the ticket.
Uh, Subway just joined forces with Michelle Obama to promote her communist food agenda....
The venerable Burger King may be next. I stopped for a quick fish sandwich, not realizing that a "yes" answer to "would you like cheese on that" bumped the price up a dollar to around $5.50, without coffee or fries. High prices are one thing, sneaky prices are another.
First and last time I was in a Quiznos.
“Malls are failing.”
And that is part of the problem. Question: WHY are malls failing?
It is all part of the same lethargy and malaise that has befallen America since the country was “rescued’ with the TARP bailout. “Too big to fail” turned out to be a recipe for “all the smaller ones have to fail”.
Obamacare just put the coup de grâce on enterprises that had found themselves on the wrong end of the cruelly tightened credit and faked “bailout” of the very largest financial institutions, at the expense of the middle level of lending institutions and the general employment picture.
I didn’t know what those things were even after watching the commercial. Hard to believe a company would pay to have that commercial made and then pay to run in. What were they thinking.
Let us not forget price elasticity of demand.
When malls were thriving Sbarro thought it their duty to overcharge for a simple slice of pizza - reheated of course. Anything fancy (read: a topping or two) had the price going north quickly. Lord knows how many stuffed, deluxe pies, etc. sat all day and went in the dumpster because of the price point. It’s anecdotal but I can’t tell you how many times people avoided Sbarro because of the real or perceived expense.
Sbarro’s woes may be tied to the retail malaise in general but they certainly made a rod for their own back along the way.
Yup...People have much better options to spend their discretionary money: Five Guys, Moes, Chipote and several others...
Uniformity of offerings i.e. cheap Chinese tat as well.
The ‘branding’ people have attempted to convince their employers/clients as well as the public that the sign on the door is more important than the product inside. Stack em high and sell em cheap. But what about us anachronists who want a shirt or pair of trousers to last more than one season as they typically did in previous decades?
The quality of even so-called luxury brands has fallen off a cliff and for some reason the OEMs are pretending the public don’t notice despite the grim sales numbers they must be seeing at corporate.
WHY are malls failing?
Location,location,location...and changing demographics in malls neighborhoods.
Too many malls in this nation have become daycare centers for inner city ‘people of color’. They do not spend and bring their violent ways with them...
So many things are going up in price that there is little disposable income left.
Hit the mall or pay for medical insurance?
Wasn't long ago that most people could afford to do both.
Malls are failing in part because I can sit on my ass in front of my computer and pretty much order anything I need and have it delivered to my door...
In many cases even with the shipping costs, it will only be a bit more than going out and shopping for it...
I don't have to visit different stores to find the best price, availability, etc,
The other piece of the puzzle is Wal-Mart Super Centers where you have one stop shopping...
Quiznos had a bad business model for its franchises. Had to buy from the corporate office, far above market prices. Also had high franchise fees, etc. The corporation was trying to milk the franchises to support the corporation, pushed the franchises into bankruptcy. Now pushing the corporation into bankruptcy.
Yup...many, many moons ago I ran a Pizza Hut Restaurant..
We had to buy from the supplier approved by the corp office, (only one) and we paid out the yazoo for items I could have bought for 20% to 40% less anywhere else...
Where I live, the local mall lost its McDonald's. It seemed to be doing a brisk business, but the mall owners raised the rent and McDonald's decided to pull out. In another mall, the Chick Fil A moved out and into a standalone building across the parking lot from a smaller nearby shopping center. I'm sure the rent in the shopping center was a lot less costly.
Every time a nationally recognized restaurant chain goes out of business, $1.74 is added to the economy.
I used to walk by a Quiznos every day for break. I think I only ate there once.
For the first 25 years of my career I had never been laid off. In the last 5 years, I've been laid off twice.
For the last five years, eating out for us is McDonald's, Subway, or a pizza.
What happened five years ago? Hmmmm...
They had the most disgusting mascot and terrible ads when I used to watch hours of TV a week. I’m not sure that Obama is solely to blame for this ‘fail’.
I bet you're a guy, because you sound like me. The few brick and mortar stores I visit are Lowes and Staples.
But guys don't keep malls in business. My wife and girls LOVE going shopping, even if it's just TJMaxx.
I know. It is hard to imagine...
People line up practically out the door at Chipotle and Five Guys where I live, in the same economy where Sbarros and Quiznos are failing. I'm hardly an Obamaphile (to say the least) but it isn't his fault that people refuse to eat bad food.
That’s what I was thinking. That was the gayest ad I’ve seen and for food ewwwww.
You've pegged it. If I'm going to buy a pair of poor quality pants made in Asia, I might as well pay $11 at Walmart instead of $60 at the Mall.
Subway is out for me (personal last straw: hooking up with Chelle-O), and I'd like to have more, not less, alternatives.
Mutant hamsters were actually an improvement over the earlier commercials.
They became forever known as "Queerznos" after that "Put it in me, Scott" (in male oven's voice) "12 inch Toasty Torpedo" commercial.
That was supposed to make people want to eat their food?
Nonsense. TARP and Obama have nothing to do with it. It is all part of the fact that people shop online now. I buy clothes online, books online, items for the house online. I do my Christmas shopping online, buy birthday presents online, and a whole lot of people I know do the same. There is a grocery store startup in one of the Kansas suburbs now that will allow you to do your grocery shopping on line, pay for it, then when it's ready they'll text you and you drive through and pick it up. Heck, even my mom buys stuff off "the interweb" and she's hardly what I'd call computer savvy. The fact is that it's just easier than going to the mall and wandering around past all the idiot teenagers hanging out.
This recession has seen a massive “weeding out” of businesses that have inherent structural problems. Why do you think Howard Schultz returned to run Starbucks and massively overhauled the entire operation, which has returned the company back to profitability (and resulted in successful expansion in eastern Asia?).
“What happened five years ago? Hmmmm...”
The decline had already started by that point; Obama is just accelrating it. America has been bleeding jobs for decades; it became much more noticeable as white-collar jobs followed blue-collar jobs overseas.
For us, eating out has been reduced to the occasional pizza; other stuff just costs too much as our children grow.
I went to Quiznos exactly one time.
They had a special on a brisket sandwich.
The service was slow and surly,the sandwich was sub par and even on special it cost me like $12.