Tim Hortons wants cup o’ joe couples
Chain hopes lovebirds will take on franchises across Ontario, U.S.
Tim Hortons Inc. is looking for hard-working couples to establish new franchises in Ontario, Western Canada and the U.S., investors were told Wednesday.
“They don’t need to invest in the real estate, so they don’t need to have a financial worth of $1 million. We’re looking for someone who doesn’t mind cleaning tables and serving guests at our restaurant,” said acting chief financial officer Cynthia Devine, speaking at the Bank of America Merrill Lynch 2012 Consumer and Retail conference in New York on Wednesday.
Franchise owners can get into the market for the cost of the restaurant equipment and make money over time, she said, adding that they are looking for people who are interested in a 20-year relationship.
The presentation was the second in as many days, with Devine and Paul House, executive chairman, CEO and president, outlining plans for developing up to 175 new locations in Canada and 100 new full-serve locations in the U.S. in 2012.
House has been acting CEO since Donald Schroeder left suddenly in May, after the Canadian unit missed profit expectations in the first quarter of 2011, sending stock into a tailspin.
House had also been CEO before Schroeder.
The stock has since recovered and Tim Hortons is reporting returns on investment capital and assets well above industry averages.
House said Wednesday the company is taking its time to fill the CEO position. Inside and outside candidates are being considered.
“The one thing we do want is somebody to fit our culture. The company is not broken. We don’t need a new strategic plan, we have a great plan. If we go outside, we’re not looking for a fixer; We’re looking for somebody who can keep a great team together and keep the momentum that we have with this great brand.”
He added that the recent decision to change coffee cup sizes at Tim Hortons received national news coverage and successfully traded people up to buying more coffee. “That tells you the strength of the brand,” he said. “Anybody who can get away with what we just did — you’ve got to have a great reputation in the marketplace.” Loyalty is behavioural and attitudinal and Tim Hortons has both, said Mark Vandenbosch, professor of marketing at the Ivey business school. Going to Tim Hortons for coffee has become a habit for Canadians because Tim Hortons outlets are everywhere. The company has successfully appealed to everyday Canadians with an everyday cup of coffee. “They really have grown as the Canadian coffee shop. It’s part of our culture to know what a doubledouble is and what roll-up-the-rim is,” said Vandenbosch.