Quiznos to boost Arizona presence with multi-unit franchise deal

Dive Brief:

Quiznos has signed a 30-unit development agreement with franchisee Parish Patel, the company said this week. The restaurants will open across Arizona starting in 2023.
Patel, a former Quiznos operator who left the chain’s system in 2015, will develop the units over the next seven years. Three sites are slated to open in 2023 and 2024 each.
Some of the new units will be built in the Qube format, a modular design developed in a partnership between Quiznos parent company Rego Restaurant Group and BCubed Manufacturing.

Dive Insight:

Patel’s return to the Quiznos system suggests franchisees see new potential in the chain, which has undergone a redesign and is expanding via ghost kitchens. Quiznos has four locations in the Arizona market, according to its website, so this deal will increase its presence eightfold.

At 650 square feet, the Qube format provides additional opportunities for franchisees to develop small footprint restaurants with drive-thrus with lower real estate costs. Quiznos says the Qubes also have lower construction costs since the modular units can be built within three months. One of Patel’s units will be near the University of Arizona campus in Tucson, according to the press release.

“Quiznos is an iconic brand that remains an innovator in the fast casual sandwich category, and I truly believe — with everything the brand is doing differently, from its menu to their new franchisee-first model — that Quiznos can return to the top 10 in the QSR category,” Patel said in a statement.

The agreement includes exclusivity for Patel to develop in key areas across the region.

The 30-unit deal also comes a few months after Quiznos signed an exclusive agreement with CF Lifestyle Investments to develop more Quiznos in the Denver market. CF Lifestyle, led by Dominik and Monica Mendoza, also acquired six corporate units in that market. CF Lifestyle opened a redesigned Quiznos restaurant in Hobbs, New Mexico, which will serve as a blueprint for future Quiznos locations.

Other chains have been signing multi-unit deals with franchisees in the past few months. Fat Brands announced an 80-unit development deal with Brame Holdings to open 40 Round Table Pizza and 40 co-branded Fatburger and Buffalo’s Express units in Texas earlier this month. This week, Checkers & Rally’s said it signed three multi-unit deals to bring 40 restaurants across three states. Subway revised its franchising strategy focus from individual franchisees to multi-unit experienced operators.