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Cold weather and an outdated roll-up-the-rim-to-win promotion slowed sales at Canadian Tim Hortons locations in its most recent quarter, said the CEO of the coffee chain’s parent company,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

Fuel and copper wire thefts in Columbia Valley

Columbia Valley RCMP report October 7-13th

Stabbing in Radium leads to high-risk takedown

Two men arrested in relation to attack

Former Liberal candidate endorses Greens in Kootenay-Columbia

Don Johnston says he’ll be voting for Abra Brynne on Oct. 21

Invermere buys Athalmer land for $5 million

Celebratory barbecue to come

Explosive Dynamiters too much TNT for Rockies

Hometown crowd pulls for Rockies in last weekend’s home game

VIDEO: #MeToo leader launches new hashtag to mobilize U.S. voters

Tarana Burke hopes to prompt moderators to ask about sexual violence at next debate

UPDATE: British couple vacationing in Vancouver detained in U.S. after crossing border

CBP claims individuals were denied travel authorization, crossing was deliberate

After losing two baby boys, B.C. parents hope to cut through the taboo of infant death

Oct. 15 is Pregnancy and Infant Loss Awareness Day in B.C.

Cheating husband sues mistress for gifted ring after wife learns about affair

The husband gave his mistress $1,000 to buy herself a ring in December 2017

B.C. massage therapist reprimanded, fined for exposing patients’ breasts

Registered massage therapist admits professional misconduct

B.C. boosts legal aid funding in new payment contract

‘Duty counsel’ service restored in some communities, David Eby says

Rugby Canada helps recovery efforts in Japan after typhoon cancels final match

Canadian players wanted to “give back in whatever small way they could”

Alberta to join B.C.’s class-action lawsuit against opioid manufacturers, distributors

B.C. government claims opioids were falsely marketed as less addictive than other pain meds

Most Read