More changes for Elgin downtown

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Updated: August 4, 2011 4:20PM

ELGIN — In Elgin’s downtown, an eatery will be closing soon, while a nonprofit may be expanding into significantly more space.

Quiznos owners Joe Follrath and Suzanne Pfaff said this week they have decided to shut their doors for good “unless someone makes us a last-minute offer to buy the place.”

The Douglas Avenue sandwich shop, which has been in business downtown for eight years, will stay open until it runs out of stock, which probably will be by the end of next week, they said. The owners plan to hold an auction sometime thereafter.

The two say they have been looking at options for about six months but that the business is no longer financially viable.

“Our concern right now is finding new jobs for our employees who have been with us through thick and thin,” Follrath said.

While Elgin is battling to revive its downtown, the restaurant faced challenges from the city’s construction projects, the bad economy and company policies that left margins tight and profits sagging.

“We originally chose to open a Quiznos franchise because of the company’s growth potential and the quality of its products,” said Follrath. “We did great business for the first few years, but sales have been swiftly declining since we hit our peak in 2007.”

According to information provided by Elgin’s Downtown Neighborhood Association, with the recession on the horizon, between 2007 and 2009, more than 1,000 franchisee-owned Quiznos closed.

“Franchisees cite rising Quiznos-distributor food costs, drastic coupon discounts such as buy-one, get-one-free sandwiches, and other corporate policy decisions,” the release stated. “Currently, Quiznos is requiring its franchisees to undergo a complete interior renovation and point-of-sale system upgrade.”

“Joe and Suzanne faced an onslaught of challenges with their business that were very much out of their control — corporate turmoil, prolonged street construction, and the recession are among the top three. The fact that they have persevered for this long is incredibly admirable,” said Tonya Hudson, executive director of the Downtown Neighborhood Association. “It’s a testament to the loyal customer base they built in downtown over the past eight years, and that is no easy task.”

Senior Services plans

While Quiznos closes, Councilman Mike Warren hopes next week’s committee of the whole agenda holds a proposal he helped craft for helping Senior Services Associates expand beyond the 800 square feet it rents at 105 S. Grove Ave. to include another 6,900 square feet of room close by at 107 S. Grove and 205 Fulton St.

Warren mentioned the proposal was in the works at last week’s city council meetings. He said he had the idea about a month and a half ago after attending a Senior Services function and talking with staff about a need there for more space.

The opportunity presented itself with the adjacent properties going on the market, Warren said.

All three sites are overseen by Elite Management, 164 Division St., located in the Professional Building downtown. So Warren asked city staff to look into what could be done and talked to others, including Mayor Ed Schock, about coming up with a plan.

Warren, who like Schock is running for re-election, said the mayor told him he knew Ron Cope, one of the owners of the Professional Building, who also own the properties in question. So Schock put the parties in touch to get the ball rolling on a proposed project.

As presented, rent on the property would be $3,600 per month, which would include all utilities. A code inspection would be done prior to any agreement.

Senior Services would continue to pay $800 a month out of its own funds. Warren said that Elgin Township will consider at its own meeting next week kicking in $833 a month. And the city would contribute $1,967 a month toward the rent.

The city’s share would come from an existing agreement with Senior Services. Already, the city is set to pay the agency $10,170 in 2011 as part of the agreement to provide services to local seniors. The proposal would add almost $14,000 to that to cover seven months rent this year. And, if approved as currently being suggested, the city then would have to come up with extra money to help pay the rent in years beyond that.