Cold weather slowed sales at Tim Hortons last quarter

Roll-up-the-rim contest also declined in interest, prompting executives to think about overhaul

A Tim Hortons coffee shop in downtown Toronto. (THE CANADIAN PRESS/Eduardo Lima)

Cold weather and an outdated roll-up-the-rim-to-win promotion slowed sales at Canadian Tim Hortons locations in its most recent quarter, said the CEO of the coffee chain’s parent company, prompting Restaurant Brands International Inc. to revamp the contest for next year.

Comparable store sales at Tim Hortons fell 0.6 per cent worldwide, and 0.4 per cent in Canada. The company only breaks out each chain’s home market for comparable sales figures.

READ MORE: Tim Hortons opens first coffee shop in China

“I hate using weather as an excuse,” said CEO Jose Cil, who has just served his first full quarter in the top post, during a conference call with investors Monday morning.

The company estimates severe winter weather during the quarter, which ended March 31, resulted in a drag of about one per cent on comparable sales.

The weather woes started in the back half of January and lasted until the end of February, said Alex Macedo, Tim Hortons president, in an interview following the conference call, and impacted performance across Canada.

A weak roll-up-the-rim campaign also contributed to the negative figure.

RBI started to see a decline in the program’s effectiveness last year, said Cil, and decided to expand the number of giveaways for 2019’s contest. However, the added investment did not drive the engagement the company expected and dragged down comparable sales about 0.5 per cent over the quarter.

“It’s become clear to us that it needs a modern and fresh approach to engage our guests in a stronger way going forward,” he said. A team is working to reboot the program for next year and that will include a seamless digital integration.

Comparable sales at the company’s two other chains were positive. Burger King comparable sales increased 2.2 per cent. Popeyes comparable sales increased 0.6 per cent.

Cil stressed the company does not believe that the negative comparable sales figure for Tim Hortons accurately reflects the underlying strength of the Canadian business and said the company expects its April comparable sales to come in at about 1.5 per cent.

Aleksandra Sagan, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Is it time for your mammogram?

Screen Test is coming to Maskwacis on October 15 and 16, and… Continue reading

Man pointed firearm around Wetaskiwin Circle K store Sept. 14

Wetaskiwin RCMP investigate firearms offences

Mulhurst Bay revitalization project discussed Aug. 13

Three phase project includes price tag over $900,000

Cow feeding economics for the 2019-20 winter season

Keep in mind prrice and availability of feed

Boat and trailer purchase necessary, hears county council

Several departments needed a better boat says CAO

VIDEO: Liberals make child care pledge, Greens unveil platform on Day 6 of campaign

Green party leader Elizabeth May unveils her party’s platform in Toronto

Alberta spends $3M to hire 30 nurse practitioners for remote areas

Province has 600 nurse practitioners, but minister says most work in hospitals or outpatient clinics

Rick Mercer calls out Conservative candidate in B.C. for fake meme

‘Not true. All fake. Please Stop,’ tweeted Rick Mercer in response

Sylvan Lake man charged with wife’s murder

Satnam Singh Sandhu, 41, will appear in Red Deer Provincial Court on Sept. 18

National weather forecasters predict average fall, cold winter

The Weather Network says precipitation will about average in most parts of Canada

Conservatives promise tax cut that they say will address Liberal increases

Scheer says the cut would apply to the lowest income bracket

Fewer trees, higher costs blamed for devastating downturn in B.C. forestry

Some say the high cost of logs is the major cause of the industry’s decline in B.C.

Most Read