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Cold weather and an outdated roll-up-the-rim-to-win promotion slowed sales at Canadian Tim Hortons locations in its most recent quarter, said the CEO of the coffee chain’s parent company,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

Grand Forks woman assaulted in home invasion

The incident took place Wednesday morning

Students rock Greenwood Community Hall

Grade 6 and 7 students performed songs from every decade since the 1950s

Your flower garden could be harbouring invasive species

Seeds for invasive species often hid in wildflower seed packs

Interior Health study offers take-home drug testing kits to spot fentanyl

Interior Health to evaluate safety of at home drug testing kits aimed at reducing fentanyl overdoses

Search crews rescue kids, 6 and 7, stranded overnight on Coquitlam mountain

Father and two youngsters fall down a steep, treacherous cliff while hiking Burke Mountain

600 new campsites coming to provincial parks and recreation sites across B.C.

Tourism Minister announced half of the new spots to 13 most popular provincial parks

Raptors beat Bucks 105-99 to move within 1 game of NBA Finals

Leonard scores 35 as Toronto takes 3-2 series lead over Milwaukee

Municipalities protest after B.C. declares marijuana crops ‘farm use’

UBCM president seeks answers in letter to John Horgan government

CMHC defends mortgage stress test changes amid calls for loosening rules

Uninsured borrowers must now show they could service their mortgage if rates rose two per cent

B.C. woman left ‘black and blue’ after being pushed off 40-foot cliff at lake

West Shore RCMP looking for witnesses as investigation continues

Grand Forks woman assaulted in home invasion

The incident took place Wednesday morning

Kootenay youth substance use trending downward: survey

A bi-annual survey distributed to regional schools shows that youth substance use is decreasing

Thunderstorms to bring heavy rain, risk of flash floods in the southern Interior

Ten to 30 millimetres of rain to fall over the early weekend

Unbe-leaf-able: Agassiz man finds more than 200 four-leaf clovers in a month

Walt Hardinge has found more than 219 four-or-more leaf clovers this spring alone

Most Read