Waterloo Region Record

Olive branch

Tim Hortons chief listens to concerns of store owners

- Aleksandra Sagan

OAKVILLE — The head of Tim Hortons extended an olive branch Monday to disgruntle­d franchisee­s, saying he is now willing to directly discuss their concerns about how the coffee-and-doughnut chain is run.

Daniel Schwartz, CEO of Restaurant Brands Internatio­nal, said he has been meeting with some store owners who have accused the company of mismanagem­ent, including using tactics such as intimidati­on to improve the bottom line.

“We’re just constantly trying to get better and trying to improve and we’re willing to listen to good feedback from people,” Schwartz said after RBI’s annual general meeting in Oakville.

RBI has been in a public tussle with a rogue associatio­n of Tim Hortons café owners called the Great White North Franchisee Associatio­n (GWNFA), which was formed to raise franchisee concerns. The group has held town halls across Canada, hired a public relations company and secured legal representa­tion to get their message across.

Schwartz said while their input is welcome, he would prefer it if they relayed it privately.

“I don’t think it makes sense to argue and debate about how to run the brand publicly,” he said. “But we’re always welcome to hear feedback if it’s constructi­ve and done in a respectful private way.”

His discussion­s with members of the associatio­n signal a reversal, as he has said previously he would not have direct communicat­ion with the associatio­n.

Schwartz encouraged the franchisee­s to run for a seat on the chain’s franchisee advisory board in the fall.

The associatio­n has said it has no confidence in the advisory board. It did not immediatel­y return a request for comment Monday.

Marc Caira, the former CEO of Tim Hortons and current vice-chair who engineered its $11-billion US sale to RBI three years ago, said the associatio­ns’ rumblings are a distractio­n from what should be its focus: its customers.

“I, as a shareholde­r, do I like this noise?” said Caira when asked about the recent negative media attention surroundin­g Tim Hortons. “Of course not …

“What I want them focused on — both management and franchisee­s — is to focus on the consumers, bring out innovative products and services to grow the business profitably over the long term.”

The disgruntle­d franchisee­s didn’t have the opportunit­y to air their grievances at the annual meeting as Schwartz did not allow questions from the audience.

“I’m astounded,” J.J. Hoey, a Tim Hortons franchisee in Mississaug­a and organizer of the Great White North Franchisee Associatio­n, said of the move to not allow questions.

RBI’s shares fell 1.19 per cent in trading on Monday. They lost 98 cents to close at $81.12 on the Toronto Stock Exchange.

 ?? FRANK GUNN, THE CANADIAN PRESS ?? Restaurant Brands Internatio­nal CEO Daniell Schwartz recently met with disgruntle­d Tim Hortons franchisee­s.
FRANK GUNN, THE CANADIAN PRESS Restaurant Brands Internatio­nal CEO Daniell Schwartz recently met with disgruntle­d Tim Hortons franchisee­s.

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