SpotlightApril2018

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minimum wage hikes have taken its toll on Canadians’ Tim Hortons brand known for its famous “Double, Double.”

TIM HORTONS FRANCHISEE ORGANIZER HAS LICENCE REVOKED AMID PUBLIC SQUABBLE Great White North Franchisee Association, which is the group that represents about half of Canada’s Tim Hortons franchisees in Canada is steaming and vowing to do every- thing in their power to assist a prominent member whose licence renewal was denied amid his ongoing tensions with Tim Hortons by their parent company Restaurant Brands International. Mark Kuziora, who owns two Toronto Tim Hortons franchises, was allegedly told by Tim Hortons parent company Restaurant Brands International in early April that he would be denied a renewal for one of the restaurants at the end of August. GWNFA has stated that Kuziora had been negotiating with RBI and Tim Hortons since September and trusted the negotiations were being done “in good faith.” Last week it said he received an email from RBI and TDL “out of the blue,” saying they will be in touch with him in the coming weeks to discuss the transfer of the restaurant to a new owner. GWNFA said it considers the move an intimidation and retaliation tactic because Kuziora was recently involved in a class-action lawsuit that alleged RBI used money from a national advertising fund improperly. TIM HORTONS SEES SLOW SALES AMID FRAN- CHISEE DISPUTE While parent company of Tim Hortons, Burger King and Popeyes, Restaurant Brands International Inc. outperformed analysts expectations on profit for its fourth quarter, Tim Hortons restaurants recorded a fifth consecutive quarter of less the stellar sales. The sales slowdown comes as about half of the company’s Canadian Tim Hortons franchisees joined an unsanctioned organization to fight against what they say is their corporate parent’s mismanagement of the Tim Hortons’ Brand. TIM HORTONS MOVING DOWN THE RANKS OF CANADIAN BRANDS

According to their annual ranking of brands by market research firm Leger which polled approximately 2,100 English and French-speaking members, aged 18 or older of its over 400,000 members of its existing online database of Canadians between December 19, 2017 and January 29, 2018 on their views of 241 different brands that operate across the country. A brand that is loved by millions of Canadians would be expected to be in the Top 5 Brands for sure, and at the worst be in the Top 10. So, it will be interesting to see the company’s reaction to see the brands fall from the Top 5 (#4) to well back in the pack of 241 companies to 50th place in the recent poll. It looks like Restaurant Brands International Inc.’s reputa- tion for being a vicious cutter of costs is something that is not playing as well in the Canadian market with franchisees and customers alike.

With these types of headlines and continued disagree- ments with its franchisees and outrage over its response to

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APRIL 2018 • SPOTLIGHT ON BUSINESS MAGAZINE

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