Restaurant Brands International (RBI), the parent company of Tim Hortons, has announced plan to reignite growth in the Canadian coffee chain by focusing on its fundamentals and founding values.
Tim Horton’s saw system-wide sales growth of only 0.3 per cent in 2019, down 2.1 per cent from the year prior. RBI says this was primarily driven by a decrease in comparable sales of 1.5 per cent, partially offset by net restaurant growth of 1.8 per cent.
Total revenues reached US$3.344 billion, up from US$3.292 billion in 2018. However, earnings before interest, taxes, depreciation, and amortisation totalled US$1.122 billion, down US$5 million from the year prior.
The performance of Tim Horton’s was significantly down from RBI’s other fast food brands, Burger Kind and Popeyes.
“We have three iconic restaurant brands that are together growing rapidly around the world. Last year, we shared a long-term aspiration to build the most loved restaurant brands in the world and have more than 40,000 restaurants open within eight to 10 years. I’m proud that our 2019 results have us solidly on track,” RBI CEO Jose Cil says.
“At Tim Hortons, our performance did not reflect the incredible power of our brand and it is clear that we have a large opportunity to refocus on our founding values and what has made us famous with our guests over the years, which will be the basis for our plan in 2020.”
Alongside this redirection, Tim Hortons hs announced an expansion of its loyalty program, including access to a wider selection of the menu and launching new exclusive offers.
Tims Rewards launched in March 2019 and has nearly 8 million active members.
On 26 February, Tims Rewards will evolve to a points-based program providing greater choice. All members will earn 10 points per eligible transaction and unlock new levels of rewards.
“We are fortunate to have the most loyal guests in Canada and we are excited to introduce the next phase of our Tims Rewards program,” says Mike Hancock, Chief Operating Officer of Tim Hortons.
‘These changes will ultimately deliver even more valuable offers and redemption choices to our guests, to make this one of the most compelling and loved loyalty programs in the country.”