DENVER Quiznos has appointed former Burger King chief executive Greg Brenneman as its president and chief executive, simultaneous with his private-equity firm’s purchase of an undisclosed stake in the sandwich-shop franchisor.
Brenneman had returned to managing that firm, TurnWorks Inc., after surrendering the helm of Burger King Holdings in April, right mbefore the burger giant’s initial public offering.
TurnWorks is as much of a turnaround company as a financier, typically re-engineering one of its purchases before selling it either to the public or another private-equity buyer. In announcing Brenneman’s appointment, Quiznos noted that its new CEO will continue to be involved with TurnWorks as well, indicating the equity firm’s usual rebuild-and-sell approach will likely be followed. That strategy earned millions for the firm with Continental Airlines, among other holdings.
Brenneman assumes his new posts at Quiznos from Rick Shaden, whose family wholly owned the sandwich concern until it sold an undisclosed stake last May to J.P. Morgan Partners, a private equity division of JPMorgan Chase & Co. J.P. Morgan has apparently retained that stake.
In a company statement, Schaden said Brenneman has an “an excellent track record working with franchise owners to improve their unit economics and the ability to spearhead revenue growth through innovative new products, concepts and opportunities.”
Quiznos, which has quickly grown to its current 5,000 franchised units, continues to be dogged in court by disgruntled franchisees, who have accused the chain of violating development agreements and allowing new Quiznos shops to encroach on existing locations. Although a Denver federal judge has thrown out earlier cases against Quiznos, franchisee lawsuits are still pending in New Jersey, Wisconsin and Canada.