Business

Tim Hortons parent company gives notice of price increases in 2022

Published

3 years ago

February 15, 2022

Ottawa, Canada - December 16, 2021: Sign of Tim Hortons cafe in downtown of Ottawa, Canada. Tim Hortons is a popular canadian fast food restaurant. — The CEO of Tim Hortons’ parent company said on Tuesday it expects additional price increases in 2022. (Getty Images)

The price of your morning coffee from Tim Hortons could be going up, as the parent company of the popular chain grapples with volatile supply chains, labour inflation and rising commodity costs.

Restaurant Brands International (QSR)(QSR.TO) chief executive José Cil says the company’s brands – including Tim Hortons, Burger King, Popeyes and Firehouse Subs – “have not been immune” to inflationary pressure and supply chain challenges in recent months.

“Given the level of commodity costs and labour inflation we’re seeing, we expect additional price increases in 2022,” Cil told analysts on a conference call on Tuesday following the release of financial results. He added that Tim Hortons menu price increases in Canada have been slightly below Consumer Price Index levels, and that the company is working with franchise owners to help guide and determine the right level of pricing.

“It’s really important for us to ensure that we control the demand side of it and not get too far ahead of the consumer from a pricing standpoint,” he said.

“Our teams work closely with the owners in Canada and with our supply chain teams to ensure that we have the right pricing going forward and continue to create that strong demand for our beverages and food.”

RBI’s chief corporate officer Duncan Fulton says the company will continue to manage pricing by analyzing a range of factors, including inflation, commodity costs, what competitors are doing in terms of pricing, as well as regional differences.

“It’s really an ongoing process,” he said in an interview.

“We’re highly competitive for Canadians in price, but also being fair to our franchisees.”

The potential price hikes come as sales continue to improve at Tim Hortons amid the COVID-19 recovery. The coffee and doughnut chain saw comparable sales – a key metric in the retail industry – increase 10.3 per cent year-over-year in the three-month period ending Dec. 31. In the same quarter last year, comparable sales fell 11 per cent.

Sales in the breakfast category was a key driver of the strong performance in the quarter, Cil notes, with sales surpassing 2019 levels for the first time. He also says Tim Hortons’ collaboration with Justin Bieber, which saw the launch of three new Timbit flavours and a lineup of merchandise, “was one of the more successful traffic-driving initiatives in recent memory and outperformed our internal expectations.”

Fulton notes that the recovery at Tim Hortons still has room to grow, particularly in urban and suburban locations where traffic has not yet recovered to pre-pandemic levels. Sales at rural locations, meanwhile, have surpassed 2019 levels.

“We still have pockets of government intervention… but we’ve got a great business performance now, based on our breakfast, lunch and beverage offerings,” Fulton said.

“As people begin to return to downtown locations and increase their frequency of commuting to the office, that’s all upside for us as the country continues to reopen.”

Overall sales at RBI, which reports its financial results in U.S. dollars, hit $1.55 billion, up from $1.36 billion during the same time last year. On an adjusted basis, RBI says it earned 74 cents per diluted share in the fourth quarter, up from 53 cents per diluted share in 2020.

Analysts on average had expected an adjusted profit of 69 cents per share and US$1.52 billion in revenue, according to financial markets data firm Refinitiv.

With files from The Canadian Press

Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.

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Business

Carry On Canadian Business. Carry On!

Published

12 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

15 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

15 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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