Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Toasty Or Toasted? Quiznos Follows Sbarro Into Bankruptcy [Obamanomics Fail]
Forbes ^ | 3/16/14 | Brian Solomon

Posted on 03/15/2014 3:53:14 AM PDT by SoFloFreeper

Restaurant chains are dropping like flies this week.

On Monday pizza franchise Sbarro dipped into Chapter 11 bankruptcy. Following in its footsteps on Friday, sub shop Quiznos announced that it too would sink into bankruptcy as part of a “pre-packaged” deal to cut its debt by more than $400 million, or two-thirds.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bankruptcy; bhoeconomy; fastfood; jobs; layoffs; quiznos
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-72 next last
To: DoodleDawg

“Malls are failing.”

And that is part of the problem. Question: WHY are malls failing?

It is all part of the same lethargy and malaise that has befallen America since the country was “rescued’ with the TARP bailout. “Too big to fail” turned out to be a recipe for “all the smaller ones have to fail”.

Obamacare just put the coup de grâce on enterprises that had found themselves on the wrong end of the cruelly tightened credit and faked “bailout” of the very largest financial institutions, at the expense of the middle level of lending institutions and the general employment picture.


21 posted on 03/15/2014 5:20:49 AM PDT by alloysteel (Obamacare - Death and Taxes now available online. One-stop shopping at its best!)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Vision

I didn’t know what those things were even after watching the commercial. Hard to believe a company would pay to have that commercial made and then pay to run in. What were they thinking.


22 posted on 03/15/2014 5:22:44 AM PDT by Flick Lives ("I can't believe it's not Fascism!")
[ Post Reply | Private Reply | To 19 | View Replies]

To: jalisco555

Let us not forget price elasticity of demand.

When malls were thriving Sbarro thought it their duty to overcharge for a simple slice of pizza - reheated of course. Anything fancy (read: a topping or two) had the price going north quickly. Lord knows how many stuffed, deluxe pies, etc. sat all day and went in the dumpster because of the price point. It’s anecdotal but I can’t tell you how many times people avoided Sbarro because of the real or perceived expense.

Sbarro’s woes may be tied to the retail malaise in general but they certainly made a rod for their own back along the way.


23 posted on 03/15/2014 5:25:09 AM PDT by relictele (Principiis obsta & Finem respice - Resist The Beginnings & Consider The End)
[ Post Reply | Private Reply | To 2 | View Replies]

To: jalisco555
I think it’s mostly the sign of lousy food.

Yup...People have much better options to spend their discretionary money: Five Guys, Moes, Chipote and several others...

24 posted on 03/15/2014 5:28:17 AM PDT by Popman ("Resistance to Tyrants is Obedience to God" - Thomas Jefferson)
[ Post Reply | Private Reply | To 2 | View Replies]

To: alloysteel

Uniformity of offerings i.e. cheap Chinese tat as well.

The ‘branding’ people have attempted to convince their employers/clients as well as the public that the sign on the door is more important than the product inside. Stack em high and sell em cheap. But what about us anachronists who want a shirt or pair of trousers to last more than one season as they typically did in previous decades?

The quality of even so-called luxury brands has fallen off a cliff and for some reason the OEMs are pretending the public don’t notice despite the grim sales numbers they must be seeing at corporate.


25 posted on 03/15/2014 5:30:58 AM PDT by relictele (Principiis obsta & Finem respice - Resist The Beginnings & Consider The End)
[ Post Reply | Private Reply | To 21 | View Replies]

To: alloysteel

WHY are malls failing?

Location,location,location...and changing demographics in malls neighborhoods.

Too many malls in this nation have become daycare centers for inner city ‘people of color’. They do not spend and bring their violent ways with them...


26 posted on 03/15/2014 5:31:44 AM PDT by Le Chien Rouge
[ Post Reply | Private Reply | To 21 | View Replies]

To: alloysteel
As pointed out on another thread, “the inflation that must not be spoken of” is killing the middle class of our country.

So many things are going up in price that there is little disposable income left.

Hit the mall or pay for medical insurance?

Wasn't long ago that most people could afford to do both.

27 posted on 03/15/2014 5:33:18 AM PDT by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
[ Post Reply | Private Reply | To 21 | View Replies]

To: alloysteel
And that is part of the problem. Question: WHY are malls failing?

Malls are failing in part because I can sit on my ass in front of my computer and pretty much order anything I need and have it delivered to my door...

In many cases even with the shipping costs, it will only be a bit more than going out and shopping for it...

I don't have to visit different stores to find the best price, availability, etc,

The other piece of the puzzle is Wal-Mart Super Centers where you have one stop shopping...

28 posted on 03/15/2014 5:34:47 AM PDT by Popman ("Resistance to Tyrants is Obedience to God" - Thomas Jefferson)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Popman

Quiznos had a bad business model for its franchises. Had to buy from the corporate office, far above market prices. Also had high franchise fees, etc. The corporation was trying to milk the franchises to support the corporation, pushed the franchises into bankruptcy. Now pushing the corporation into bankruptcy.


29 posted on 03/15/2014 5:53:32 AM PDT by rstrahan
[ Post Reply | Private Reply | To 28 | View Replies]

To: alloysteel
Question: WHY are malls failing?
Surely you jest.
30 posted on 03/15/2014 5:58:59 AM PDT by oh8eleven (RVN '67-'68)
[ Post Reply | Private Reply | To 21 | View Replies]

To: rstrahan
Quiznos had a bad business model for its franchises. Had to buy from the corporate office, far above market prices.

Yup...many, many moons ago I ran a Pizza Hut Restaurant..

We had to buy from the supplier approved by the corp office, (only one) and we paid out the yazoo for items I could have bought for 20% to 40% less anywhere else...

31 posted on 03/15/2014 6:00:16 AM PDT by Popman ("Resistance to Tyrants is Obedience to God" - Thomas Jefferson)
[ Post Reply | Private Reply | To 29 | View Replies]

To: alloysteel
Another problem with malls is high rent. Businesses struggling to stay open because of Obamacare and a general inability of most customers to afford to shop as they once did are still being forced to pay higher and higher rentals for their leased space.

Where I live, the local mall lost its McDonald's. It seemed to be doing a brisk business, but the mall owners raised the rent and McDonald's decided to pull out. In another mall, the Chick Fil A moved out and into a standalone building across the parking lot from a smaller nearby shopping center. I'm sure the rent in the shopping center was a lot less costly.

32 posted on 03/15/2014 6:04:26 AM PDT by fatnotlazy
[ Post Reply | Private Reply | To 21 | View Replies]

To: SoFloFreeper

Every time a nationally recognized restaurant chain goes out of business, $1.74 is added to the economy.


33 posted on 03/15/2014 6:14:06 AM PDT by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoFloFreeper; newgeezer

I used to walk by a Quiznos every day for break. I think I only ate there once.


34 posted on 03/15/2014 6:14:25 AM PDT by DungeonMaster
[ Post Reply | Private Reply | To 1 | View Replies]

To: jughandle
Sbarro, $8.00 for a slice of pizza and a soda at the mall. First and last time for me.

Gonna get me a New Yawk slice!

35 posted on 03/15/2014 6:14:33 AM PDT by SamAdams76
[ Post Reply | Private Reply | To 10 | View Replies]

To: oblomov
Using rodents with human teeth (rotten human teeth at that) to sell your food product. Brilliant!
36 posted on 03/15/2014 6:17:23 AM PDT by SamAdams76
[ Post Reply | Private Reply | To 4 | View Replies]

To: kearnyirish2
I think for most Americans, the idea of eating out has gone the way of the dodo.

For the first 25 years of my career I had never been laid off. In the last 5 years, I've been laid off twice.

For the last five years, eating out for us is McDonald's, Subway, or a pizza.

What happened five years ago? Hmmmm...

37 posted on 03/15/2014 6:17:41 AM PDT by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
[ Post Reply | Private Reply | To 12 | View Replies]

To: SoFloFreeper

They had the most disgusting mascot and terrible ads when I used to watch hours of TV a week. I’m not sure that Obama is solely to blame for this ‘fail’.


38 posted on 03/15/2014 6:21:45 AM PDT by PAR35
[ Post Reply | Private Reply | To 1 | View Replies]

To: Popman
Malls are failing in part because I can sit on my ass in front of my computer and pretty much order anything I need and have it delivered to my door...

I bet you're a guy, because you sound like me. The few brick and mortar stores I visit are Lowes and Staples.

But guys don't keep malls in business. My wife and girls LOVE going shopping, even if it's just TJMaxx.

I know. It is hard to imagine...

39 posted on 03/15/2014 6:22:20 AM PDT by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Popman
Yup...People have much better options to spend their discretionary money: Five Guys, Moes, Chipote and several others...

People line up practically out the door at Chipotle and Five Guys where I live, in the same economy where Sbarros and Quiznos are failing. I'm hardly an Obamaphile (to say the least) but it isn't his fault that people refuse to eat bad food.

40 posted on 03/15/2014 6:22:43 AM PDT by jalisco555 ("My 80% friend is not my 20% enemy" - Ronald Reagan)
[ Post Reply | Private Reply | To 24 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-72 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson