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

Leads sought in whereabouts of Serval cat

It’s been four days since the disappearance of a Fernie resident’s beloved… Continue reading

East Kootenay Open this weekend

Fernie tennis players are warming up for the biggest tournament east of the Okanagan.

Community spirit shines at centennial

Hundreds have helped mark Fernie Golf Club’s 100th anniversary

SAR rescues injured dog after fall

A rope technician was able to reach the dog after being lowered nearly 90 metres down the cliffs.

Fernie-born location manager honoured

Rino Pace has scouted the locations for roughly 50 films, including X-Men, Inception and Deadpool.

VIDEO: Visual recap of Vancouver Island MusicFest

Walk Off The Earth, Passenger, Arlo Guthrie among highlights

Trudeau’s youth council divided over Trans Mountain pipeline purchase

A letter signed by 16 past and present members was made public today, asking the federal government to reverse course

Hulk Hogan reinstated into wrestling Hall of Fame

Hogan had used racial slurs caught on video when talking about his daughter sleeping with a black man

‘Lava bomb’ through roof of tour boat injures 22 in Hawaii

“An explosion occurred near the shoreline hurling hot lava rocks towards the boat and injuring several passengers”

B.C. teen meets Nicolas Cage

Filming mob movie in downtown Vernon, B.C.

Critics claim Trump “defended a tyrant”

Trump questions US intel, not Putin, on Russia 2016 meddling

B.C. MLAs choose new children’s watchdog

Jennifer Charlesworth has worked in government, social services

B.C. reporter calls out immigration photo on social media as fake news

A Vancouver reporter is calling out a British politician for spreading fake news

Hundreds of Arctic glaciers shrinking, disappearing

Out of 1,773 glaciers, 1,353 shrank significantly between 2000 and 2016

Most Read