Article

Quiznos turns to millennials in turnaround bid

Quiznos will launch a new POS (expected in 2015) and will then be able to test some loyalty tools and a mobile app. The brand is also testing gluten-free options.

December 9, 2014 by Alicia Kelso — Editor, QSRWeb.com

There have been plenty of changes at Quiznos since its heavily publicized struggles first emerged a few years ago, leading to franchisee contentiousness and bankruptcy. The Denver-based sandwich concept filed again earlier this year before quickly emerging from Chapter 11 in July. 

Most of the recent changes have been spearheaded by CEO Stuart Mathis and CMO Susan Lintonsmith, both of whom came on board in 2012. Among these efforts are financial restructuring and service and menu upgrades. 

Lintonsmith also said the brand has shifted some of its marketing messaging specifically toward the coveted millennial demographic.

"The sandwich segment is a great segment to be in – it's popular, growing and it has a nice health halo. We've definitely been working on turning the brand around and working on what made us great at one time by listening to guests and franchisees," she said. "And we've been busy working on how we reach our millennial guests." 

Toasty TV among millennial outreach efforts

Quiznos is gleaning learnings from new marketing initiatives, including Toasty.TV, which is described by the brand as "Curated entertainment, straight from the Toaster." Toasty.TV (www.toasty.tv) is a busy, image-heavy website with news, sports stories, comedy and music videos and more, all intertwined with subtle Quiznos branding, menu information, store locators and social media channels.

"The overall objective is to reach the millennial on their terms and build a relationship with them and communicate with them what they want to embrace," Lintonsmith said. "We want to provide great content to them that they want to share. They're always on the Internet, on their mobile devices, and they're engaging with media in a number of ways. We want to reach them where they spend their time."

She adds that all of the content on Toasty.TV fits the Quiznos brand and its history of having a "fun and irreverent personality." The content is also mobile-friendly. 

One of the biggest draws is that it promotes the brand without being too salesy, Lintonsmith said. Quiznos has received positive feedback about the interactive site, which launched in March.

The company is currently trying to figure out how to appropriately gauge the site's success. Lintonsmith said since its launch, there has been a significant uptick on Quiznos' YouTube channel. Also, the locator map traffic has increased by triple digits and the average amount of time a customer spends on the website exceeds 10 minutes.

"This is exciting. These are the things we're looking at that show us we have the right content," Lintonsmith said. "There are over 50 original content pieces we've put on this site and we can see which have resonated more, refine the ones that haven't and learn from what's working."

In addition to Toasty.TV, some Quiznos franchisees are testing texting programs that allow them to communicate directly to their guests. Tests have also been done on geotargeted marketing in certain trade areas. In the social sphere, Quiznos has a presence on YouTube, Facebook, Twitter, Instagram and Google Plus.  

"There are a number of things we're looking at to help our franchisees do something local and relevant," Lintonsmith said. "And we're always looking at what would make sense with our audience. Local marketing is more important to us now. We want to understand what our guests are doing before and after they go to Quiznos and how to better reach them."

To help with that goal, Quiznos will launch a new POS (expected in 2015) and will then be able to test some loyalty tools and a mobile app.

Menu upgrades

The millennials are also driving a trend toward higher quality ingredients and chef-designed recipes, which Quiznos has tried to leverage alongside its "toasted" positioning. 

September's launch of its Ciabatta Toasties is an example of this effort and fits consumer demand for more variety and new flavors. The lineup included the Honey Dijon Ham, Turkey Pesto and Veggie Caprese. Unlike other QSRs experimenting with different bread carriers, Quiznos has long had ciabatta bread as part of its grab-and-go platform.

The brand decided to toast these offerings based on input from a Southern California franchisee, who tested some recipes successfully and hit the quality and value price point the company was looking for, Lintonsmith said. 

"They were a big success because of Quiznos' equity of toasted and hot," she said. "It was a great quality product. Everyone embraced it." 

The turkey and ham were particularly popular.

"The veggie is mixing the lowest, but that was our expectation and we wanted to make sure it was still an option because we always have guests who prefer non-meat," she said. "We have always had a niche of consumers who ask for an assortment of non-meat or veggie options."

The company has also received some requests for gluten-free options and is currently testing such a platform in the Northwest.

With the Ciabatta Toasties, Quiznos took the snap from a franchisee. Lintonsmith said the company also partners with vendors, members of the operations team and other restaurant employees to get menu ideas.

Once an idea fits the brand's strategic need, it is then put through a concept test and refined before undergoing an operations test in a handful of stores. After that, Quiznos conducts a larger market test before the official systemwide launch.

"I do believe there is no shortage of great ideas right now. There are wonderful flavor trends out there and so much we could be doing. It comes down to the choices that you feel will work for your guests and what can be executed across your system," Lintonsmith. "The consumer is driving this trend toward more choices and flavors; the millennials and their interest in globally-inspired recipes. They're more sophisticated than other generations and marketers have to respond to that."

Quiznos has accelerated its menu launches to respond to the millennial-driven shift in palates. For example, pork innovation with southern and spicy variations worked well in 2013 and was brought back this year. Its bourbon-infused sandwiches performed well, the brand translated its toasted platform into a new pasta lineup, and its new Lobster Mac & Cheese was launched to complement Lenten season. Quiznos' desserts are also doing stronger than expected, Lintonsmith said.

She also acknowledges that some rollouts haven't been quite as successful; for example the chicken fajita launch in 2013.

"Our chicken LTOs usually aren't as newsworthy," she said. "We thought we'd hit the chicken fajita out of the park and it did not. That taught us to go more with what we know and to listen more closely to what our customers want."

About Alicia Kelso

---

None

Connect with Alicia: