Industry News | April 22, 2010
Quiznos Gains Capital from Primary Shareholders
Quiznos announced on Wednesday that a significant injection of capital from its primary shareholders, including private equity funds affiliated with J.P. Morgan Partners, LLC, 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,” says 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.
“The Quiznos brand is vital and on-the-move and now has the correct debt and equity structure to effectively support that momentum,” Schaden says.
The transaction was managed by Goldman, Sachs & Co.
Food & Beverage
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