Quiznos franchisees, for instance, are required to buy food from American Food Distributors, a company owned by the Quiznos corporation that acts as a middleman with food-manufacturing companies.
Today, Mr. Schodron estimates his food costs are running in the “mid- to upper 30 percent” range and some double-meat sandwiches top out at 40 percent of revenue. “I called a supplier and was quoted a price for the same type of cheese Quiznos uses that was 40 cents a pound cheaper than I am paying now,” Mr. Schodron said. He said he wants to sell the restaurant because rising costs are making it increasingly difficult to break even.
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