Tim Hortons Donuts Sued by Franchisees over Fresh Ads

by Barry ORegan | June 14, 2008 at 06:34 am
6084 views | 20 Recommendations | 14 comments

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Tim Hortons co founder Joyce outraged over Frozen donuts and resigns

Tim Hortons co founder Joyce outraged over Frozen donuts and resigns

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uploaded by Barry ORegan

Opinion
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.

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Jordan Yerman
Jordan Yerman
flagged this story as Good Stuff

at 07:00 on June 14th, 2008

By switching out its core product, Timmy's is leaving its franchisees holding the bag: I'd certainly not want to be the point of contact for all those complaints, even as I lose business.

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Barry ORegan

Jordan, can you tell the difference between their fresh and frozen, but you not get a whiff of freezer burn when you bite into a tim hortons donut.  Any while we are at it. How come i cant get a cinnamon donut? Is there a cinnamon shortage in the world markets.  By the way thanks for the comments and raising the issue of core products,.

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Jordan Yerman

I haven't had a donut in ages (probably six or seven months- I'm in danger of losing my Canadian citizenship), but the taste of a fresh donut is unmistakable! 

That's a good question, though: why is cinnamon the stuff of buns and rolls and twists, but not of donuts? 

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Jon H

Actually, there is a cinnamon shortage. Most of it comes from Sri Lanka, and they are having a hard time getting enough people to do the manual labor of harvesting.

I've noticed several cinnamon-based products (toothpaste, Altoids) going out of production lately.

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Barry ORegan

I know, cinnamon donuts are my favourite, Tim Hortons can never explain why they don't have them here in BC, yet every other province has them

Amy Judd
Amy Judd
flagged this story as Good Stuff

at 14:13 on June 14th, 2008

Barry Artiste, I like this story. It's good stuff.

There's nothing better than a fresh TH's Vanilla Dip donut. Mmmmm, although I am not eating them these days so I probably shouldn't have written that...

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Barry ORegan

I too haven't eaten one in ages, but when you do, you will notice a distinct Freezer burn taste, similar to when you take a can of whipped cream and pouring the contents down your throat until it is empty and with a last shot you get the propellent Freon as an aftertaste.  Then you will know what I mean by that Freezzery Freon aftertaste. You probably haven't done this, but I bet Jordan has;

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Uter

It is truly an outrage what Tim Hortons has done to the core product offering. I know exactly what you mean about the fresh vs. frozen taste. I also have not had a good moist donuts from a Tim Hortons outlet in ages. The freezing process must make it impossible to retain good moisture levels. People are too stupid and caught up in the herd mentality to complain or resist the darn place.

I was in the States recently and visited a number of New England area Dunkin Donuts. These appeared to be quite fresh and tasty. I do not suspect that they are made from frozen dough, but more research is required. They also featured more interesting donut selection than the bland Hortons. Oh yeah,

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Barry ORegan

Thanks Uter for the comments, one of my faves is the cinnamon Tim Hortons donuts which are available everywhere in Canada, but British Columbia, when I asked them about them, they gave me that Deer in the Headlights look, and replied, "Really?" We have never heard of cinnamon donuts?

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SteveTheHawk

Once upon a time, I heard that Tim Horton's was coming to my town. They built 4 stores here. There are no donut shops in my vicinity so I was a bit enthused. Oh, what a let down TH is.

The donuts are plainly and simply, not good. There is absolutely no hint of the fresh donut taste. I couldn't figure out why they tasted like sub-par donuts, thinking that perhaps I was just going in at the wrong time of day. I tried several more visits, varying the time. No difference.

Then I discovered through a web search that TH does not make fresh donuts at all. They simply warm up frozen donuts from a factory. How pathetic. No reason for me to go back. Boxed donuts from my grocery store are almost as good.

I have noticed that whenever I drive past the local TH stores, they don't seem to be very busy. Not a surprise there in my opinion. Sorry TH..... you just don't make the grade.

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Micah M.

I worked for Tim Hortons for almost 9 years, most of that time as a baker.  I've seen it all from the rise of soups and sandwiches to the fall of the classic honey cruller.  Once that frozen crap came into my store I was apalled at what I saw and really couldn't take pride in my work.  Making donuts and muffins from scratch was difficult and almost fun at the same time.  An 8hr job now took only 4hrs to do so I spent most of my time playing cards and Game Boy (working the night shift).  There really wasn't anything else to do at that time.

The donuts became smaller, drier and bland thanks to the new freezing process.  Now everything is pre-made and frozen, even the muffins.  Those new breakfast sandwiches, they're frozen too.  Even the "egg" that's in it.  You'll see signs on the crossonts and danishes calling them "european style".  That's total BS.  Those things are still the same frozen crap that Tim's has been putting out for years.  Nothing has changed.  I'll go there for coffee and maybe a bagel too but that's it.

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Uter

Any updates on this guys?

To reinforce this lawsuit that the company has been hit by, perhaps we could all contact the company in formal writing (not just e-mail) to explain that we have not been impressed one bit with the taste of donuts since the transition and that we (at least I have) do not even entertain the thought of geting donuts there. At one time, I would suggest to my family that we get a dozen donuts for dessert. Now I am embarrassed to serve any guests i have or my family donuts for dessert. As one posted mentioned above, they are no better than grocery store donuts.

We could point out in our message how "we inquire about the level of sales of donuts over the past few years and how this compares to when they were made on site." Lastly, we could suggest that as an offer of goodwill, they could cover the $60,000 cost they imposed on franchises to reverse the renovation process.

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Uter

Further, I hate the variance in selection from one franchise to another. In Ontario, there is way too much fluctuation on types of donuts offerred.

My ones to have as constants?

-Boston Creme, Honey Cruller, Honey Dip, A Cherry donut, Strawberry Vanilla Creme, Chocolate Dip, Maple Dip, Canadian Maple. Strawberry/Raspberry Jelly, Lemon Jelly, Old Fashion, Old Fashion Glazed, Sour Cream Glazed,

Cut out this crap with the monthly ones that come and go. We don't need fudge, walnut donuts etc

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Barry ORegan

Thanks Uter and everyone for your comments, and especially thanks to Micah for his first hand input.  Tim Hortons, much like MacDonalds has diversifies as Jordan said in the beginning, they have forgot their Core Product Donuts, was the crowd pleaser that and coffee which made Tim Hortons. Now Tim Hortons offer pretty much everything under the sun, and donuts it seems is a small part of the franchise I fear.

As for a personal writing campaign, I am all for it, but unfortunately it will be for naught. Why? Just look at the lines which form in the morning, sometimes around the block for a coffee and a donut, it certainly does not appear Tim Hortons is suffering, hence only the Die Hards like us feel hard done by.

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