Quiznos followed in the footsteps of pizza chain Sbarro, Inc. on Friday, filing for Chapter 11 bankruptcy. The Denver-based toasted sandwich chain is suffering, like many fast-food restaurants from a shrinking market, and stiffening competition amongst its remaining rivals, the Washington Post reports.
“It’s survival of the fittest,” said Bob Goldwin, executive vice president of restaurant researcher Technomic, Inc., in a phone interview with the Washington Post. “The market is not growing, or it’s barely growing, so the weak players are going to get weeded out.”
Quiznos filed for bankruptcy after reaching a deal to cut its debt by more than $400 million, or roughly two-thirds; the company has said it will continue operating despite its filing and is planning to move forward on a debt-restructuring plan, as well as taking steps to make operational improvements.
“The actions we are taking are intended to enable Quiznos to reduce our debt, execute a comprehensive plan to further enhance the customer experience, elevate the profile of the brand and help increase sales and profits for our franchise owners,” Stuart Mathis, Quiznos Chief Executive, said on Friday at the time of the filing, per The Wall Street Journal.