DENVER - Long before dawn breaks, Greg Brenneman is on the run, a habit that can be a bit disconcerting for his temporary houseguest.
Quiznos' new chief executive officer invited Steve Provost to stay with him during Mr. Provost's move to Denver, an invitation that extended to eight-mile runs. "He runs on a treadmill and I try desperately to keep up next to him," said Mr. Provost, the new chief marketing officer.
Mr. Brenneman, who relishes a challenge as much as he does a good run, is applying his turnaround expertise — first with Continental Airlines and then Burger King — to the troubled sandwich chain, whose dissatisfied franchise owners have complained about low profits, company operating requirements and the franchisee recruiting process.
Since jumping into the fray in January, Mr. Brenneman has worked to reduce food costs by as much as 4 percent, open communication channels with franchisees and test new products, like a Quiznos taco, to boost profits.
"In these situations, the biggest challenge is always identifying what the few things you can do to really improve profitability for the franchise owners are and then doing them quickly," said Mr. Brenneman.
Some owners are pleased with the changes, especially the lower food costs. Others remain skeptical.
Ron DiSaverio, who owns three Denver-area Quiznos, said the company is moving in the right direction. "It just takes awhile so I'm always a little bit wait-and-see attitude only because that's the nature of this business," he said.
Founded in 1981 in Denver's Capitol Hill neighborhood, Quiznos sought from the beginning to set itself apart with made-to-order toasted subs. The company and its 18 restaurants were purchased 10 years later by franchise-owner Rick Schaden and his father, Dick Schaden, who set it on a fast-growth track.
The Schadens took the company public in 1994, only to convert it to a private operation in a $6.5 million transaction in 2001 after deciding the stock sale wasn't an effective source of financing.
Last year, private equity firm J.P. Morgan Partners LLC became an ownership partner, and Mr. Brenneman later became a partner through his company, Turnworks Inc.
