Close X
Thursday, October 31, 2024
ADVT 
National

Tim Hortons Puts Tims TV Under Review Following Enbridge Controversy

IANS, 27 Jul, 2015 12:02 PM
    TORONTO — Executives at Tim Hortons are reconsidering whether it's worth the risk of flavouring your coffee break with potential controversy.
     
    After the restaurant chain was dragged into a clash between environmentalists and oil industry supporters last month, Daniel Schwartz, CEO of Tim Hortons' parent company Restaurant Brands, said Monday the company is reviewing its Tims TV in-store digital screens.
     
    "We're now taking a look at the whole Tims TV program and what makes sense for the brand," said Schwartz in an interview with The Canadian Press.
     
    "As with many things in the restaurant, we explore what's best from time to time."
     
    The review comes after Tim Hortons was put in the hot seat for giving advertisement space to pipeline giant Enbridge on its in-store digital screens.
     
    The commercials angered environmentalists who launched an online petition to get them pulled. When Tim Hortons yanked the Enbridge ads, some oil sector supporters called it an insult to one of Canada's biggest industries and launched their own boycott.
     
    The conflict showed the potential dangers of a brand as recognizable as Tim Hortons selling ad space to companies that could rankle its customers.
     
    The coffee and doughnut chain began experimenting with Tims TV last year before rolling out screens at restaurants across the country. The company described Tims TV as its own version of a community space, serving as a home for the latest news, weather, local events and branded videos.
     
    But the thrust of the concept was to pocket revenue from what's essentially a billboard inside the restaurants. Advertisers could buy airtime on Tims TV in a looping rotation of content.
     
    Canadian movie theatre operator Cineplex Inc. (TSX:CGX) runs Tims TV as part of a multi-year agreement with Tim Hortons where both companies sell advertising time on the screens.
     
     
    On Monday, Restaurant Brands International Inc. (TSX:QSR) reported a second-quarter profit of US$9.6 million, or five cents per share for the three months ended June 30. That compared with a profit of $75.1 million or 21 cents per share a year ago before the two brands combined.
     
    The company behind Tim Hortons and Burger King said revenue totalled $1.04 billion, up from $261.2 million in the second quarter of 2014 before Burger King acquired Tim Hortons late last year.
     
    Same-store sales — sales at outlets that have been open for at least a year — were up 5.5 per cent at Tim Hortons locations, while Burger King had same-store sales growth of 6.7 per cent.
     
    Restaurant Brands said it will pay a quarterly dividend of 12 cents per share, up from 10 cents per share.
     
    On an adjusted basis, Restaurant Brands earned $142.7 million or 30 cents per share in its latest quarter. Analysts had expected a profit of 25 cents per share for the quarter, according to Thomson Reuters.
     
    Tim Hortons opened locations at a record pace in the first half of this year with net growth reaching a historical high of 105 new restaurants, Schwartz said. About 90 of those stores were in Canada.
     
    The chain is also looking to make a bigger splash in the Middle East with its local operating partner Apparel Group. Schwartz said he recently visited the region alongside chief financial officer Josh Kobza with the intention of getting a better grasp on how to boost the brand's presence.
     
    "I'm really excited about the progress that has been made," he said.
     
    "We've been figuring out the target markets and started speaking with partners all around the world."

    MORE National ARTICLES

    Former Senior Civil Servant Guides Children's Ministry Review Of Sex Abuse Case

    Minister of Children and Family Development Stephanie Cadieux says Bob Plecas will submit his review to her by Oct. 13, 2015, and the document will be released to the public a week later.

    Former Senior Civil Servant Guides Children's Ministry Review Of Sex Abuse Case

    NDP Urges Parents Who Don't Need Child Care Cheques To Donate Them To Party

    NDP Urges Parents Who Don't Need Child Care Cheques To Donate Them To Party
    OTTAWA — The federal NDP is encouraging parents who don't need the newly enhanced universal child care benefit to donate the money to the party.

    NDP Urges Parents Who Don't Need Child Care Cheques To Donate Them To Party

    Authorities Identify Two Of The Three Victims In Quebec Fire

    Authorities Identify Two Of The Three Victims In Quebec Fire
    DRUMMONDVILLE, Que. — Two of the three people who died in a fire in a Quebec apartment building have been identified.

    Authorities Identify Two Of The Three Victims In Quebec Fire

    Businessman William Black Named Chairman For National Securities Regulator

    Businessman William Black Named Chairman For National Securities Regulator
    TORONTO — Nova Scotia businessman William Black has been named the chairman of the expert board of directors for the proposed national securities regulator.

    Businessman William Black Named Chairman For National Securities Regulator

    Prime Minister Stephen Harper Continues Western Swing In Saskatchewan Today

    Prime Minister Stephen Harper Continues Western Swing In Saskatchewan Today
    Harper joined B-C Premier Christy Clark on Thursday afternoon to meet crews who have been fighting an out of control wildfire near West Kelowna.

    Prime Minister Stephen Harper Continues Western Swing In Saskatchewan Today

    B.C. Drought Forces Mill To Close One Operation In Hopes Of Saving Two Others

    B.C. Drought Forces Mill To Close One Operation In Hopes Of Saving Two Others
    SECHELT, B.C. — Drought conditions gripping southern British Columbia can now be blamed for costing at least 130 jobs.

    B.C. Drought Forces Mill To Close One Operation In Hopes Of Saving Two Others