Tim Hortons sales slump as parent company unveils drive-thru modernization plans

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As Tim Hortons sales continue to lag during the coronavirus pandemic, the coffee and donut chain is modernizing its drive-thru with new digital menu boards

Tim Hortons posted comparable sales in the three-month period ending Sept. 30 in the fall 125% overall, a deeper plunge after a 14 percent drop in the same period l last year In Canada, the chain’s sales fell 137% as the coronavirus pandemic continues to disrupt morning routines, a key aspect of the company’s business

Same-store sales decline at Tim Hortons largest among three brands operated by parent company Restaurant Brands International (QSRTO) and contributed to lower corporate bottom line Burger King saw sales drop by 7%, while those of Popeyes jumped 17% 4 percent

« While we made significant progress in the third quarter, our performance also reflected some more difficult impacts of the pandemic on consumer behavior, » RBI Managing Director Jose Cil said during ‘a conference call with analysts on Tuesday, highlighting changing customer habits and restrictions that have forced the company to close dining rooms in some areas, including parts of Ontario and Quebec

« The resulting impact on consumption habits has led to some variability in the pace of recovery between regions and time of day »

Lower sales at Tim Hortons and Burger King, as well as lower supply chain sales, contributed to RBI’s overall profit decline The company, which reports results in US dollars, has said adjusted net income for the quarter was $ 320 million, or 68 cents per share, from $ 337 million, or 72 percent per share, last year

The disruption by COVID-19 of morning routines and commuters was the biggest factor in the sales decline at Tim Hortons, RBI Managing Director Duncan Fulton said in an interview on Tuesday While the breakfast segment struggled, Tim Hortons experienced substantial growth in third-party delivery and drive-thru

This drive-through experience is about to get a facelift RBI announced on Tuesday that it plans to modernize more than 10,000 of its drive-thru restaurants, including 2,700 in Tim Hortons

Currently, approximately 1,900 Tim Hortons offer printed paper menu boards in Toronto that employees need to replace frequently, depending on the time of day and menu changes. Cartons are replaced with digital displays that feature “predictive selling” algorithms that can customize menu offerings based on previous popular items at that location, weather conditions and time of day RBI is also testing menu boards that have integrated Tim’s loyalty program in 30 locations Site is testing a prototype card that will allow customers to order and pay via a contactless payment method on the same screen

Josh Kobza, chief operating officer of RBI, said during a conference call with analysts on Tuesday that the growth of drive-thru has put pressure on the company to keep service simple and efficient

“You’ve seen us focus a lot on simplicity of operations and simplicity of our offering and less innovation,” said Kobza

« We have been looking for ways to make our kitchens more efficient and allow us to generate a faster drive through flow »

Nonetheless, as Tim Hortons’ drive-thru thrives, the chain has closed some indoor dining rooms in the Ontario and Quebec regions due to government restrictions, further reducing sales Fulton said the company is urging governments to be targeted when it comes to imposing restrictions

« We have encouraged governments, as well as many other players in our industry, to be really specific about using data to decide which locations should be closed or open, » he said, adding that Tim Hortons had 49 cases of COVID -19 at its 2,000 locations in Ontario since March About 56,000 people work in these restaurants

« We think it’s important for governments to look at the data to find out what types of places are more at risk of spreading COVID-19, and then be more surgical in enforcing these government orders »

Restaurant Brands International, Tim Hortons, Burger King, Drive-through, Popeyes

World News – CA – Tim Hortons sales plummet as parent company unveils plan to modernize drive-thru

Source: https://www.yahoo.com/news/tim-hortons-sales-drop-as-parent-company-unveils-plans-to-modernize-drivethrus-134332956.html

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