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Cold weather and an outdated roll-up-the-rim-to-win promotion slowed sales at Canadian Tim Hortons locations in its most recent quarter, said the CEO of the coffee chain’s parent company,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

Needle buyback program fails to gain support in Vernon

Existing Folks on Spokes program proving effective

Conservative leader stops in Lake Country

Andrew Scheer says he would bring back two child-focused tax credits cut by the Liberals

Charlotte Diamond to bring classic children’s music to Vernon

Iconic Canadian children’s entertainer performs Oct. 6 at Vernon District Performing Arts Centre

Decision on Sagmoen voir dire expected today

Media outlets to tackle publication ban in Vernon courts

Greener future rounded up at Vernon fair

Kal Tire Community Eco-Fair builds on environmental best practices

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

Free Tesla 3 offered with purchase of Surrey townhome

Century Group’s offer for Viridian development runs through Oct. 31

B.C. communities urged to improve access for disabled people

One in four B.C. residents has disability, most want to work

Sikh millworker lodges human rights complaint against Interfor, again

Mander Sohal, fired from Delta’s Acorn Mill, alleges discrimination based on religion and disability

Twenty day search for missing Labradoodle ends with tears of joy

After twenty days of worry, thousands of kilometers driven, hundreds of social… Continue reading

Okanagan inmate who allegedly assaulted prisoners and officer gets trial extension

Afshin Maleki Ighani appeared in Penticton Supreme Court on Monday

South Okanagan gas prices among the lowest at B.C. pumps

Nine of the 10 lowest-priced gas locations are in Penticton

Lakeshore Racquets Club hosts the 23rd Credit Union Cup

Tournament in Summerland draws teams from around the Okanagan Valley

Summerland to hold cross-country races Sept. 29

Trail races will be held at Summerland Rodeo Grounds

Most Read