Skip navigation
Having Words With Dave Deno President And Chief Executive, Quiznos

Having Words With Dave Deno President And Chief Executive, Quiznos

Once ranked among the fastest-growing chains in NRN’s Top 100 chain census for expanding by 1,000 units a year, Denver-based Quiznos has slowed its growth to 300 domestic restaurants a year. Currently, Quiznos owns one unit and is the franchisor of 4,490 domestic stores and 624 international locations. The company reported $1.8 billion in domestic systemwide sales in 2007.

In the past two years, Quiznos has reduced its number of menu offerings while also introducing new items. It launched $2 flatbread sandwiches and a $5, $7 and $9 pricing strategy to appeal to cost-conscious customers. The company also is making a push for delivery and catering as well as international growth. While four franchisees’ lawsuits against the chain are still pending in three states, Quiznos officials report franchisee relationships are much improved.

These changes, which began under chief executive Greg Brenneman, are expected to continue under the new leadership of Dave Deno, a former chief operating officer for Louisville, Ky.-based Yum! Brands Inc. who became Quiznos’ president last year. Deno will take on the additional title of chief executive effective Sept. 30 as Brenneman steps down to became managing partner and chairman of the private-equity firm CCMP Capital Advisors LLC in Denver. CCMP owns a portion of Quiznos, along with Brenneman’s company, Turnworks, and J.P. Morgan Partners LLC.

Why has Quiznos slowed its growth?

We grew very, very fast. When you grow really fast, it’s tough to make sure you’ve got the right partners and the right real estate. But I’d surmise that even at 300 a year, there are not a lot of chains that are doing that. I think 300 today, and 500 [internationally] is practical for a concept our size.

The economy is very challenging today, with rising food, labor and energy costs. What is Quiznos doing to improve franchisee profitability?

Every day we’re trying to reduce costs for the franchise owner. Our purchasing organization is locking in prices. We’ve gotten away from doing a lot of couponing. Instead, we introduced the $5, $7 and $9 sandwiches as well as our $2 Sammies [flatbread sandwiches]. Our transactions are up significantly. It’s resonating with our customers.

You’ve said Quiznos will be looking for multi-unit operators overseas. Do you want those types of franchisees domestically as well?

We are looking for multiunit operators. They tend to be more financially sound and sophisticated in operations.

FAST FACTS

EDUCATION: bachelor’s degree in economics and political science, Macalester College; M.B.A., University of MichiganPERSONAL: married, three childrenAGE: 51HOBBIES: sports, reading about history, economics

Will having more experienced multiunit operators help with franchisee relations?

My whole career has been about great relationships with franchisees. I could never figure out why systems argue with each other when they should be united to beat the competition. Let’s get the system unified and behind the great Quiznos brand. We are increasing communication with franchise owners and working on expanding with multiunit operators.

Why did you leave Yum and PepsiCo after 15 years?

I was very happy, but I had a chance to work in private equity [as a managing director for CCMP]. I like working on turning around a business and enhancing value in something. That’s what I tried to do my entire career. It’s great to do it in a private environment, rather than a public market.

TAGS: Finance News
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish