The parent company of Tim Hortons said it plans to “refocus” on its coffee, baked goods and breakfast business after a year that saw dozens of product launches and promotions drag down sales at the coffee and doughnut chain.

Restaurant Brands International (QSR), which also operates the Burger King and Popeyes chains, reported Monday that sales growth at Tim Hortons fell 2.9 per cent in the three month period ending Dec. 31 compared to the same time last year. Comparable sales, a key metric in the retail industry, fell 4.3 per cent at Tim Hortons versus the same time last year, while Burger King increased 2.8 per cent, and Popeyes jumped an eye-popping 34.4 per cent.

RBI chief executive Jose Cil said on a conference call with analysts on Monday that he has made understanding and addressing the weak performance at Tim Hortons his “top priority.”

“We have not performed to expectations and have not properly put the strength of the Tim Hortons brand to work,” Cil told analysts.

“Despite our recent results, we have a clear plan and believe it's within our control to restore Tim Hortons to growth in Canada. To do so, we will embody the brand's founding values and execute on each of our principles around elevating core quality, innovating for growth, and modernizing the brand.”

Toronto, Canada- 19th May 2014: The outside of a Tim Hortons Coffee Shop during the day. Bikes can be seen outside and people can be seen in the windows. More

Cil also said the company’s approach to product innovation and promotions over the last several years weighed on the brand’s results, particularly in the last year. Throughout 2019, Tim Hortons introduced nearly 60 different limited time offers, three times more than it had done in previous years. Among those launches was the introduction of the Beyond Meat plant-based burger, which was pulled off the menu within months.

“Our approach to product innovation and promotions over the last couple of years has led to disappointing results for the quarter and the year,” Cil said.

“Some new products over the last two years strayed too far from our core categories that we’ve always been famous for. Going forward, new launches will be more targeted and will build on our core categories.”

Duncan Fulton, RBI’s chief corporate officer, said in an interview with Yahoo Finance Canada on Monday that the 60 limited time offers meant Tim Hortons was spending too much time “on the edges” of what the brand is known for, which also complicated operations.

“It causes havoc at the restaurant level because there’s a ton of of part time employees that come in every week needing to learn (new items) and it causes confusion with guests who love us for our basics, and every time they come in, the menu board is plastered with new special offers,” Fulton said.

“You saw Tim Hortons try a burger for the first time. Quite honestly, we have no business doing burgers at Tim Hortons.”

Both Cil and Fulton stressed Monday that Tim Hortons will now be focused on getting back to the basics it is known for – coffee, baked goods and breakfast items.

That means continuing the rollout of its new fresh brewer technology, which is supposed to improve the consistency of Tim Hortons coffee. The technology is in place at more than 2,000 restaurants, and it will be installed in remaining locations by mid-year.

That also means a refreshed marketing campaign that is focused on highlighting the company’s leadership in coffee. Tim Hortons will also introduce skim milk and non-dairy alternatives like almond milk to store locations in the spring.

When it comes to breakfast, Tim Hortons is working “to enhance the taste, texture and overall quality of our bacon”, Cil said, as well as significantly improving the bread carriers for breakfast sandwiches.

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