Tim Hortons may be an iconic Canadian brand, but lately, the well-known coffee and doughnut shop has been suffering. According to a quarterly report from its parent company, Tim Hortons is losing money. Meanwhile, Burger King and Popeyes, also owned by the same parent company, are surging.

According to a Q3 report from Restaurant Brands International, Tim Hortons' global comparable sales dropped 1.4%. Meanwhile, the global comparable sales for both Popeyes and Burger King shot up 9.7% and 4.8%, respectively.

Jose Cil, Chief Executive Officer of Restaurant Brands International, commented in the report that this was a "challenging" quarter for the iconic Canadian coffee shop. 

Cil told investors during a conference call that the falling sales were due to underperforming lunch options such as sandwiches and wraps, according to Bloomberg News.

Cil also pointed to the poor performance of the Beyond Meat burger introduced at Tim Hortons. The product was pulled from almost all locations in Canada except for Ontario and British Columbia.

"We saw some initial trial and excitement around the product," Cil told Bloomberg News, "but we launched it as a limited-time offer and when that window ran we decided it was best to take it off the menu and maybe consider other alternatives down the road."

Meanwhile, a meatless "Impossible" burger helped to drive Burger King's global comparable sales up to 4.8%

Similarly, while Tim Hortons introduced a new crispy chicken sandwich as part of its line up of lunch options, Popeyes did the same thing with far more success. In fact, the sandwich was so popular that it was selling out all over the United States.

"One thing is to predict high demand," Popeyes America President Felipe Athayde told Yahoo Finance. "The other thing is when you have 50 people lined up outside of the restaurant at 9 a.m. when the restaurant opens at 10 a.m."

Tim Hortons had already struggled with breaking into the fast-food lunch market, and it appears to be the main factor in dragging sales growth while Burger King and Popeyes forge ahead.

At least you can still get a box of Timbits cereal next year.

Narcity has contacted Burger King, Popeyes, and Tim Hortons for comment and we will update the article should we receive relevant information.


There are stories everywhere. If you spot a newsworthy event in your city, send us a message, photo, or video @NarcityCanada on Twitter and Instagram.


Comments are now closed.
Account Settings
Notifications
Favourites
Share Feedback
Log Out

Register this device to receive push notifications