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Cold weather and an outdated roll-up-the-rim-to-win promotion slowed sales at Canadian Tim Hortons locations in its most recent quarter, said the CEO of the coffee chain’s parent company,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

Figures reveal spike in highway traffic jams between Abbotsford and Langley

Nearly one in 20 westbound vehicles between Abbotsford and Langley clocked at under 60 km/h

Township council to debate fate of empty Fort Langley buildings

A demolition permit has been sought for the boarded-up buildings

New Langley ER taking shape – hospital head

What can you expect from construction at LMH in the near future?

LETTER: Langley pool staff outstanding

A Langley woman thanks the team at Al Anderson Memorial Pool for all they do

LANGLEY’S WHAT’S IN STORE: Entrepreneurs make the shortlist

Know of a new business in town, one expanding, moving, or hosting a community event, let us know…

Fashion Fridays: 5 casual summer dress styles

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Bank of Canada lowers qualifying rate used in mortgage stress tests

Home sales softened last year after the federal government introduced new stress test rules for uninsured mortgages

Couple found dead along northern B.C. highway in double homicide

Woman from the U.S. and man from Australia found dead near Liard Hot Springs

Trudeau says Ottawa open to proposals for B.C. refinery as gas prices soar

Prime minister says he knows B.C. residents are struggling and the federal government is open to ideas

Clock’s ticking to share how you feel about Daylight Saving Time in B.C.

Provincial public survey ends at 4 p.m. on Friday

B.C. man pleads guilty in snake venom death of toddler

Plea comes more than five years after the incident in North Vancouver

B.C. First Nation’s group using ads in Texas targeting company for fuel spill

The Heiltsuk Tribal Council has called out Kirby Corporation for the Nathan E. Stewart oil spill

B.C. woman wins record $2.1 million on casino slot machine

‘That night was so surreal … I wasn’t able to sleep or eat for the first two days,’ she said

After B.C. dad’s death, Technical Safety BC wants changes to trampoline park rules

Jay Greenwood, 46, did ‘a series of acrobatic manoeuvres prior to a fall that caused serious injury and cardiac arrest’

Most Read