Quiznos Gasses Up at Convenience Stores, But Risks Angering Its Franchise Owners

Quiznos is hoping to grab some market share by adding mini-stores in gas stations. While the move would boost sales, it runs the risk of pissing off the chain's already notoriously grouchy franchise owners.

Those franchise owners were already unhappy because they think Quiznos' lackluster marketing and higher food costs disproportionately hit them in the recession. And they just finalized a settlement on four different class action lawsuits against Quiznos in January. Among the issues: franchisees who bought units but were never able to find a location. With Quiznos mini-stores popping up in filling stations, it's going to get even more difficult to find a territory where the chain's toasty subs aren't already sold.

The Toasted Subs Franchisee Association already lists "encroachment" into franchisees' territory as one of its big beefs with Quiznos. The company's plan to quadruple its filling-station mini-stores to 700 units by 2012 will only aggravate this problem.

Quiznos needs to reach out to franchisees now. They should explain how they plan to add these gas-station eateries without infringing on franchisee business, or perhaps offer them a compensation plan for business lost to these new mini-stores. In part due to fractious relations with franchisees, the company installed a new CEO a year ago, bringing back founder Rick Shaden to the top spot. Here's his chance to show Quiznos is changing and listening to franchisee concerns as the company moves this initiative forward. With Taco Bell, McDonald's, and other fast-food competitors building their own presence in convenience stores, Quiznos wants to get in on the opportunity. But they need to make sure franchisees are on board, or it may not be worth it. It takes a lot of sandwich sales to pay for those lawsuits.

Photo via Flickr user jwalsh