Quizno’s, and its recent financial struggles, was a topic of discussion on NPR’s Morning Edition yesterday morning. Quizno’s has been taken over by its creditors, which is obviously not a good thing. The restaurant chain has an eroding brand. Some contributing factors include struggling franchisees, closing locations, and a long-term brand promotion battle with Subway; a battle they haven’t been able to win.
Quizno’s is at a point where they have one last chance to get it right. Here’s what we think they should do to improve not only their brand, but also increase their franchise’s success:
Understand who your customers are. Quizno’s needs to go through and profile their customers. Not who the customers have been and the preconceived notions of who they’ve been, but who they are right now. The company must determine at this moment who their most valuable customers are. After establishing who the customers are, Quizno’s must move onto step two.
Build a forecasting model. This will help Qizno's understand store performance both for existing locations and potential locations. By having a model in place that accounts for the value of their core customers (who they are right now), Quizno’s can determine the impacts of their competitors and self-induced cannibalization - that’s one Quizno's eating another's sales. Having a model that is able to return a forecast for a given location will help Quizno’s understand their sustainable domestic potential (how big can they can get in terms of number of locations) and enable the company to drill down to specific ideal locations within individual markets. A model that answers these questions will give Quizno’s and their investors the confidence to know where their stores need to be located and give franchisees that already exist the confidence to know that the company is increasing the value of brand and not further eroding it with cannibalization. Once Quizno’s profiles their customers, builds models, and as a result, has a roadmap for smart sustainable growth they can move to the final step and…
Target market to their customers. They must retain their core customers and acquire new customers that are most likely to become core custoemrs. And Quizno's must understand how to model promotions in order to drive traffic from within trade areas back to the individual restaurant.
For Quizno’s big things must be done, fortunately they can be done. But these measure need to be done smartly and quickly. The "sandwich" market is a tough competitive place right now. If you are interested in learning more about a brand that is getting it right check out our case study on Which Wich here.