Tim Hortons Donuts Sued by Franchisees over Fresh Ads
Barry Artiste, Now Public Contributor
We as Canadians remember the fiasco a couple of years ago when the owner of Tim Hortons was outraged and resigned after the sale of his Tim Hortons Corp when his beloved Donuts were changed by Greedy Corporate Bean Counters, who dropped Fresh Donuts made on each Tim Hortons franchise for Frozen Donuts trucked in from areas unknown.
Our Troops fighting in Afghanistan said one thing they missed when after a fire fight, was Tim Hortons, much like their US counterparts who miss Dunkin Donuts. Tim Hortons named after a NHL Hockey Player Tim Horton who died in a horrific car crash in the mid 1970's on his way back from a Buffalo Sabres (His team) and Toronto Maple Leafs is a Canadian institution and Icon in Canada.
Tim Hortons, much like MacDonalds use every other marketing trick in the Book to steer our memories away from the Main issue at hand, by introducing everything under the sun, when the Business was founded on one basic principle Good Food, Fresh and their Anchor Product "Donuts" and with MacDonalds "Burgers", not sandwiches and soup and fish fillets and Lattes.
Time for Tim Hortons to get back to basics if they wish their franchisees to remain loyal and viable.
Anyone who has tasted a Tim Hortons Frozen Donut, not fresh can tell the difference, at least if you have a taste bud in your head. The donuts have a distinct frozen, almost freon taste to them. Certainly not like the Donuts Mom used to make or Tim Horton used to make in times gone by.
Tim Hortons sued by franchisees over frozen doughnutsJim Middlemiss, Canwest News ServicePublished: Friday, June 13, 2008
TORONTO - "Always Fresh" apparently has its price, as doughnut king Tim Hortons is finding out the hard way.
The icon of Canadian franchising has been hit with an attempted $1.95-billlion class-action suit over its conversion from a "fresh-baked" goods restaurant to a "microwaved products store."
In a statement of claim filed in an Ontario court, two Burlington, Ont., franchise owners are suing the head office on behalf of all Tim Hortons franchisees claiming that the move to an off-site supply chain involving frozen doughnuts hasn't made them any more money. Rather, they argue, it has driven up the fixed costs of a doughnut from nine cents to 20 cents without increasing sales as allegedly promised.
Moreover, the two franchisees claim that "a more extensive lunch menu" featuring soups and sandwiches have allegedly earned them only a "minimal profit, and in some cases no profit at all . . ."
They say the lunches have become increasingly popular; however, they have "unreasonably low margins"and drive up operating costs because stores have to hire more staff to serve them.
They are claiming breach of contract, breach of duty of fair dealing, negligent misrepresentation, and unjust enrichment. The claim has yet to be certified as a class action or heard by a judge.