Restaurant Brands International, the owner of the Burger King and Popeye brands, has announced that it will be initiating a major $700mn renovation program at its Tim Hortons restaurants in the wake of the chain’s poor customer experience and sales performance.
The company revealed that Tim Hortons’ in-store sales slipped 0.3% in Q1 2018, falling short of analysts and representing a decline in one of the key metrics that indicates retail performance.
“We're not happy with sales growth and overall results at Tim Hortons,” CEO Daniel Schwartz said during an earnings conference call.
The announcement from Restaurant Brands confirm the plans that were first announced by President of the Tim Hortons brand, Alex Macedo.
“We know that Tim Hortons is a fundamental part of Canadian culture and we've worked hard with our Restaurant Owners to ensure we're delivering exactly what our Guests have come to expect from their favorite local coffee shop – we want Tim Hortons to always be their home away from home,” said Macedo.
“Throughout the creative process, we conducted extensive market testing that revealed our new Welcome Image is not only approved, but loved by our Guests across the country.”
The $700mn investment process will last four years, with the company’s 4,700 Tim Hortons stores across Canada, the US and other locations set to all be revamped.
In the wake of the announcement, Restaurant Brands shares rose more than 4% to $72.04 on the Toronto Stock Exchange.