Dave Deno, a 25-year restaurant industry veteran, fulfilled a lifelong dream when he became the head of toasted-sub sandwich chain Quiznos in September.

But the appointment also happened to coincide with the acceleration of the worst economic crisis in a generation. Suddenly, luring and retaining cash- strapped consumers jumped to the top of Deno's already ambitious to-do list.

Quiznos earlier this month implemented one of the first prongs of that strategy when the restaurant chain launched new advertising and slashed prices on 37 sandwiches, entrees and other menu items by about 4 percent. Store traffic has surged in the less than two weeks since the campaign began, Deno said.

"We have great products, absolutely great products, but sometimes our quality (creates) the perception that we're high-priced. And, also, some of our prices were high," Deno said. "When you take both of those together, it was clear we needed to address our No. 1 issue of price-value."

Deno, 51, helped overhaul pricing and menus during his tenure as chief financial officer and chief operating officer at Yum Brands, owner of Pizza Hut and Taco Bell. Before that, he worked at Burger King for eight years in various finance, real estate and operations posts.

Deno isn't new to Quiznos, serving as president throughout 2008 before adding the CEO title, as well. He took over from Greg Brenneman, who became chairman of Quiznos investor CCMP Capital Advisors. The two talk frequently, and Deno in many ways is continuing Brenneman's top priorities of expanding the 5,000-store chain overseas and boosting profits for the privately held company's U.S. franchisees.

As part of that, Quiznos is introducing new menu items like the $2 Sammie flatbread sandwich and working on other products that will debut early this year. The company also is rolling out online ordering, catering and delivery at its stores, something that Deno says will boost sales per restaurant with little additional cost.

Brenneman worked to mend relations by leaving weekly voice-mail messages and otherwise boosting communication with franchisees who complained about low profits and restrictions on how they do business. Deno is continuing that tradition, meeting with many of the franchisees in person to explain the new pricing strategy and tweaking the campaign in response to their feedback.

"Relations are getting better every day," Deno said. "I always love to compete against the bad guys. I don't want to compete against each other."

But Quiznos continues to face at least three class-action lawsuits by franchisees who claim, among other things, that the chain overcharges for food and other supplies. Reception to the new pricing strategy from store operators has been mixed.

Martin Deng, who owns a Quiznos store in Gunbarrel, said he's seen enough of an increase in customers from the move to offset thinner margins from the lower prices.

"A lot of my customers are saying it's great that Quiznos recognizes that we're in a recession" and is responding with lower prices, Deng said. He also credited Quiznos with helping to lower the costs franchisees pay for food, paper and other supplies.

Danny Kessels, who runs a Quiznos store in Boulder and is a plaintiff in one of the lawsuits against the company, said the lower prices are only further squeezing franchisees' profits. The move is also the latest marketing change among many at Quiznos, he said, while far larger rival Subway has held steady with its "Eat Fresh" logo for years.

"Quiznos is struggling with its brand identity. Many of us feel that in six months, they'll move on to something new," said Kessels, who is president of the Toasted Sub Franchise Association, a support group that he said represents more than 1,000 stores.

Deno says that Quiznos' brand is all about food and value these days. Gone are the commercials that ran in 2005 featuring a talking toddler Baby Bob, and before that the Sponge Monkeys.

"The food is the hero," Deno said.

Deno has worked in the food business since graduating from the University of Michigan with his MBA in 1982, starting at Pillsbury in his hometown of Minneapolis. His runner's build belies a lifetime in the industry, and he always tries to squeeze exercise into a busy schedule that includes a weekly commute home to Louisville, Ky. Deno's family set down roots in Yum Brand's headquarters town during his 15-year tenure at the company, though they plan to relocate to Denver after his youngest child finishes high school next year.

Deno will travel even more as Quiznos gears up its international expansion. The company already has 600 locations overseas in countries such as India, Singapore and United Arab Emirates and plans to open about 300 more each year. Not only is there less competition overseas, but most of Quiznos franchise partners are large companies such as airport concession operator HMS Host rather than mom-and-pop owners.

"The food of this brand travels very well and is accepted all around the world," Deno said. "It's something that we are going to capitalize on in a big way."