Tim Hortons, franchisees spat over $700M plan to reno many locations

New restaurants will have lighter, more natural looking exteriors and open-concept seating

Tim Hortons plans to renovate most of its Canadian restaurants over the next several years in what some franchisees say is another “ill-conceived” move that will cost individual restaurant owners about $450,000.

The coffee-and-doughnut chain and its restaurant owners will invest $700 million to gussy up almost all its Canadian locations over the next four years, the brand said.

The new restaurants will have lighter, more natural looking exteriors, and feature upgraded, open-concept seating, the Restaurant Brands International-owned chain said in a statement.

“The expectations of our guests are evolving,” said Alex Macedo, the brand’s president, in a statement explaining the design change.

The decision has generated more animosity between the chain and an unsanctioned franchisee group, the Great White North Franchisee Association.

Earlier this month, the company held a call with franchisees explaining they wanted each restaurant owner to spend about $450,000 to renovate their stores, the GWNFA’s board of directors said in a letter to its members.

The company said Tuesday that costs will be split with restaurant owners on the same proportions as has historically been the case, but declined to specify what those proportions are.

The board acknowledged many of its members “will have problems getting the finances in place to carry out these renovations” and called on the company to show a full costing of the renovation program.

It advised members, which make up about half of all of Tim Hortons Canadian franchisees, not to sign or agree to anything until more details are disclosed.

“This is just one more in the string of ill-conceived programs brought forward by a group of executives who do not understand foodservice, franchise operations or marketing,” the letter reads.

Restaurant Brands International, “wants to fix a problem it cannot solve, mainly lack of sales, by getting us to spend money while they contribute very little,” the letter said.

Tim Hortons recorded a fifth consecutive quarter of sluggish sales in mid-February, according to RBI’s most recent quarterly earnings report.

The GWNFA formed about a year ago to give a voice to frustrated restaurant owners and fight against what they say is mismanagement of the chain by its corporate parent, RBI, known for drastic cost-cutting measures at the fast-food outlets its acquires.

The two groups have taken their battle to the courts with multiple lawsuits, and most recently entered a showdown over how to handle Ontario’s roughly 20 per cent minimum wage increase. The GWNFA accuses RBI of failing to help franchisees offset the increased labour costs through a 10 per cent price hike on all menu items.

RBI did not agree to the price hikes, but called the actions of some franchisees in the province who clawed back employee benefits, like paid breaks, reckless and completely unacceptable.

Aleksandra Sagan, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Port Hardy Mayor Dennis Dugas votes in favour of eliminating overtime pay for confidential secretary

“I think when staff makes a recommendation I have to support staff’s recommendation.”

PHOTOS: Port McNeill residents remember the fallen

A huge crowd of Port McNeill residents came out on Nov. 11… Continue reading

New Coast Guard radar boosts marine traffic monitoring off B.C. coast

Six radar installations set up for Georgia Strait to Queen Charlotte Strait to Prince Rupert

Port Alice resident a descendant of two Aboriginal war heroes

Charlie and Henry Byce are Canada’s most decorated father and son in history.

Port Hardy council hesitant to formalize question period in agendas, refers it to committee

In first act as new council, representatives were uncertain about formalizing question periods.

Saving salmon: B.C. business man believes hatcheries can help bring back the fish

Tony Allard worked with a central coast First Nation to enhance salmon stocks

High-end B.C. house prices dropping, but no relief at lower levels

But experts say home ownership remains out of reach for many for middle- and lower-income families

Worker killed in collision at B.C. coal mine

Vehicle collision occurred at approximately 10:45 a.m. this morning

B.C. asking for tips on ‘dirty money’ in horse racing, real estate, luxury cars

Action follows a Peter German report on money laundering in B.C. casinos

Canadian dead more than a week after plane crash in Guyana: Global Affairs

Global Affairs said it couldn’t provide further details on the identity of the Canadian citizen

Children between 6 and 9 eligible for $1,200 RESP grant from province

BC Ministry of Education is reminding residents to apply before the deadline

Victoria spent $30,000 to remove John A. Macdonald statue

Contentious decision sparked controversy, apology from mayor

Privacy concerns over credit card use for legal online pot purchases

Worries follow privacy breaches at some Canadian cannabis retailers

Most Read