Tim Hortons forecasts another year of Canadian same-store sales growth
Restaurant Brand International Restaurants’ Tim Hortons, Popeyes.
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Tim Hortons expects Canadian sales to grow in single digits by 2022 when the turnaround of its coffee chain in its home country is complete.
The Restaurant Brands InternationalOn Tuesday, the chain announced during an investor presentation that they have set a goal to achieve 2% to 3 percent annual same-store growth. Tims estimated that Canadian sales of same-stores will increase by 10.8% through 2021 while sales of same-stores in Canada fell 16.5% between 2020 and 2021.
Tim Hortons’ Canadian presence means that it typically represents more than half the revenue of Restaurant Brands. However, recent slow sales have had a negative impact on overall restaurant results.
Tims, which has been reorganizing its executive team and updating its breakfast and coffee offerings over the years, revamped their loyalty program to drive sales growth in Canada. Before the pandemic, traffic and sales were flat. StarbucksOder McDonald’sInstead, try their coffee.
Jose Cil from Restaurant Brands, president of Restaurant Brands, stated that Canada is now more competitive than ever in recent years.
Pandemics like those in Canada posed another obstacle to their return, but Tim Hortons president Axel Schwan stated that mobility is returning.
Schwan noted that Canada was subject to some of the longest lockdowns anywhere in the globe. “Coming Out of [the first quarter]We see lots of momentum and traffic increasing, as well as people getting back out.
Earlier on Tuesday, the coffee chain reportedThe same-store sales growth was 8.4%, which is less than StreetAccount’s estimates of 9.6%. Canadian same-store sales increased by two-digits in Q1.
The presentation saw executives laying out their strategies to get customers to come back to the basics. It focuses on food and drink offerings, digital engagement, as well as the experience in-restaurant.
Schwan stated that the company will continue to focus on high-growth areas and products over the coming years. Schwan also said that it would maintain its leading operations, optimize restaurant performance, and enhance our digital ecosystem.
The technology plays an important role in these plans. For example, digital menus will be made available for all drive-thru locations nationwide. These menu boards can also suggest items according to weather conditions. They will even display digital versions Tims’ bakery cases. The executives noted that customers ordering from a drive-thru shop tend to purchase fewer pastries than those ordered inside.
Restaurant Brands shares fell by 2% during afternoon trading, even though Wall Street had high expectations for the first quarter earnings and revenue.