Olive branch
Tim Hortons chief listens to concerns of store owners
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.