Quiznos Franchise Receives Significant Capital Infusion from Shareholders While Gaining Flexibility in Company Debt
Investment to Support Growth, Excellence in Customer Experience and Profitability
DENVER --(BUSINESS WIRE)-- Quiznos, one of the nation's premier quick service restaurant chains, today announced a significant injection of capital from its primary shareholders, including private equity funds affiliated with J.P. Morgan Partners, LLC and managed by CCMP Capital Advisors, LLC and Consumer Capital Partners. The company and its lending group also amended the terms of its existing secured debt to provide additional flexibility to the company.
This infusion of capital, reduction in debt and amendment to the terms of the company's secured debt agreement provides Quiznos with the resources and flexibility to further its growth objectives, support its franchise owners and maintain the brand's strong position in the competitive restaurant industry.
"We are very pleased with this announcement and the shareholder commitment this investment represents," said Rick Schaden, founder and CEO of Quiznos. "This investment demonstrates our shareholders' confidence in our vision and strategic direction and lays a solid foundation for pursuing that vision with even greater fervor. We are pleased to be closely aligned with our shareholders and lender base for the benefit of our brand and our restaurants."
Under Schaden's leadership, Quiznos has focused its efforts on excellence in food quality, customer experience and maximizing franchise owner profitability through programs and initiatives designed to grow unit-level revenues and help mitigate the effect of the current economic climate.
Such Quiznos-financed initiatives include microloan programs to remodel existing Quiznos restaurants and facilitate multi-unit growth among top performing franchise owners, start-up financing for qualified entrepreneurs interested in opening a new Quiznos restaurant, and an operating partner program that provides financing and corporate partnership opportunities to entrepreneurs with prior restaurant experience.
Schaden continued, "The Quiznos brand is vital and on-the-move and now has the correct debt and equity structure to effectively support that momentum."
The transaction was managed by Goldman, Sachs & Co.
Now in its 30th year, Denver-based Quiznos is a national chain designed for today's busy consumers who are looking for a tasty, freshly prepared alternative to traditional fast food restaurants. Using only premium quality ingredients, Quiznos more than 4,000 restaurants offer creative, chef-inspired recipes for sandwiches, soups and salads.
In 2009, Quiznos' Toasty Torpedoes earned a spot as one of the top 10 new product introductions from the Most Memorable New Product Launch Survey. Also in 2009, QSR Magazine ranked Quiznos #19 overall in its Top 50 Chains in system-wide sales. In October 2007, Quiznos was recognized for leading the QSR industry in wait time performance by the Mystery Shopping Providers Association's (MSPA) 2007 Wait Time Study. In May 2007, Zagat's consumer surveys listed Quiznos in the top 5 for Top Food, Top Facilities, Top Service and Top Overall, ahead of its direct competitors.