Patrick Bet-David recalls talking with a Quiznos franchise owner in Granada Hills who told him he was netting only about $30,000 a year. That figure is PBD's personal anecdote, but documented reporting confirms that franchisee profitability became a major Quiznos problem.
Near its peak, roughly 4,700 Quiznos restaurants averaged only about $400,000 in annual sales. Restaurant Business reports that high food costs made profitability difficult even while Quiznos' affiliated food-distribution business generated substantial revenue. Franchisees eventually fought back through associations and litigation, alleging they were required to purchase food and supplies at inflated prices. Court records document those allegations, although allegations in a lawsuit aren't the same as judicial findings that every claim was true. In 2007, Quiznos CEO Greg Brenneman targeted operator economics directly. He estimated that reducing food costs by three percentage points and coupon discounting by four could add roughly $25,000–$30,000 in annual profits for a franchisee.
