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What happened to Tim Hortons? The downfall of Canada's brand | World news | The Guardian
Arwa Mahdawi

Mon 9 Jul 2018 12.00 BST Last modified on Mon 9 Jul 2018 12.01 BST
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Tim_Hortons  brands  Canada 
july 2018 by jerryking
3G Capital’s rigorous diet of cost cutting is weighing down Tim Hortons owner RBI, Kraft Heinz
APRIL 18, 2018 | The Globe and Mail | by IAN MCGUGAN.

Tough, cost-conscious management is a vital ingredient at any good company. But right now, shareholders in Restaurant Brands International Inc. and Kraft Heinz Co. should be asking whether a lean and mean operating style is hitting its limits when it comes to peddling doughnuts and ketchup.

In recent months, RBI, the parent of Tim Hortons, and Kraft Heinz, maker of your favourite burger condiment, have disappointed investors....... the 3G approach is beginning to show some flaws. Critics argue that managers who focus on streamlining existing operations can create a temporary bump in earnings, but have less time to spend on product development, corporate innovation and brand building. The danger, skeptics say, is that efficiency increases but sales and earnings per share don’t.

“We harbor serious doubts about the management team’s ability to generate sufficient product innovation to grow its collection of ‘retro’ brands in highly commoditized categories,” Robert Moskow of Credit Suisse wrote this week in a report that downgraded Kraft Heinz to “underperform” status.....But softer measures suggest the profits are coming at a cost. Consider a survey of 1,501 Canadian adults published this week by Angus Reid Institute. Thirty five per cent of respondents said their opinion of Tim Hortons had worsened in recent years. While Tim Hortons’ advertising campaigns have tirelessly promoted the chain’s deep roots in Canadian communities, the reality on the ground appears to be shifting.

At Kraft Heinz, signs of stress are also becoming apparent, according to Mr. Moskow. The company’s Oscar Mayer cold cuts and Kraft natural cheese brands are losing market share to private labels, while Canadian retailers recently reduced their inventories, he said.

Employees may not be all that happy, either. Mr. Moskow said industry sources have expressed concern about growing turnover rates among Kraft Heinz staffers.
3G_Capital  Tim_Hortons  cost-cutting  product_development  innovation  Kraft_Heinz 
april 2018 by jerryking
Daniel S. Schwartz of Restaurant Brands International on the Value of Hard Work
SEPT. 8, 2017 | The New York Times| By ADAM BRYANT.

When you think about your leadership style today, do you see their[his parent's] influence?

Probably the biggest influence they’ve had is about always being very respectful of other people. Neither of them led teams or organizations, but there was always this emphasis on kindness and manners and just being a good person.

I always have that in the back of my head, regardless of who I’m talking to. The world’s a small place, life’s short, and so you should only be nice to people. I don’t raise my voice at work. I don’t have tantrums.......Alex Behring, who heads up 3G, gave me some great advice early on. He said that you have to manage the people, not the business. .....What were other early lessons for you?

If you want to change something or if you want to really influence or impact someone, you need to be in that person’s market and be with them face to face. You can’t run a multinational business from your desk. You can’t just get on the phone and tell the people that you need to do things differently.

If you make the trip, that’s a big investment of time for you. People appreciate that, and they’re going to be more open to your feedback. You’ll also have more credibility because you’ve seen their business and been in their market......How do you hire?

I like people who are passionate, who have persevered and who are clearly humble and not arrogant. It’s O.K. to be confident, but not arrogant. I like people who genuinely are looking for a project and not a job.
CEOs  hard_work  Tim_Hortons  Popeyes  Burger_King  hiring  leadership  3G_Capital  RBI  Daniel_Schwartz  lessons_learned  humility 
september 2017 by jerryking
Inside the brutal transformation of Tim Hortons - The Globe and Mail
MARINA STRAUSS
THE GLOBE AND MAIL
LAST UPDATED: WEDNESDAY, FEB. 22, 2017

Since taking over the iconic chain in 2014, its new Brazilian owner, 3G Capital, has purged head office, slashed costs and squeezed suppliers. Shareholders are happy, but is 3G tearing the heart out of Timmy’s?.....3G is regarded as ultra-disciplined owners who are sticking to the same playbook they have followed at companies including Burger King, Anheuser-Busch, Kraft Foods and Heinz: massive layoffs, replacing legacy managers with hungry youngsters and, above all, a fanatical devotion to financial benchmarks and cost-cutting. (It remains to be seen whether this will also be the approach for RBI’s latest acquisition, Popeyes Louisiana Kitchen.)....Will 3G's analytics-driven overhaul of Tim Hortons—using the same template the private equity firm’s founders have deployed at railroads, brewers and food makers—succeed in the long run, or is it in danger of cutting the heart out of a Canadian icon? ......Suppliers are also feeling the squeeze. From the get-go, RBI made it clear it would be reviewing vendor relationships. And the company pushed for better terms, including extensions on bill payments to as much as 120 days from 30 days or less. Maple Leaf Foods, a major partner that supplied meat to Tim Hortons, declined to accept the new terms, and walked away....
Former employees also say RBI has cut back on product research and development spending at Tim Hortons, offloading some of that work to suppliers. That’s not uncommon in the fast-food world, but it can be risky. “Suppliers can do a great job with innovating and R&D, but you’re limited to what the supplier is trying to develop,” ......3G has never encountered a brand quite like Tim Hortons. It isn’t just another coffee company. It is a Canadian destination, an integral part of many Canadians’ day and a brand that defines us, to some degree, around the world.......“The risk, in looking at Tim Hortons through the lens of efficiency alone, is to miss the greatest value of the asset, and that is the Tim’s brand and its deep connection to the fabric of the country,” says Joe Jackman, founder of strategic retail consultant Jackman Reinvents, whose clients have included Old Navy, Hertz, Rexall and FreshCo. “You can’t cost-cut your way to retail nirvana.”
3G_Capital  brands  Canadiana  coffee  community_support  cost-cutting  cultural_touchpoints  data_driven  downsizing  efficiencies  fast-food  franchising  goodwill  head_offices  iconic  JWT  layoffs  Maple_Leaf_Foods  Marina_Strauss  organizational_culture  playbooks  private_equity  R&D  RBI  restructurings  staying_hungry  supply_chains  supply_chain_squeeze  Tim_Hortons  transformational  walking_away 
february 2017 by jerryking
An expert at the quick flip cooking up a whopper deal - FT.com
August 29, 2014 | FT | By Neil Munshi.

It did not take long for Mr Schwartz’s confidence to bear fruit. In 2013, when he was only 32 years old, he was put in charge of Burger King by 3G Capital of Brazil, its private equity owners. This week, only 16 days after turning 34, Mr Schwartz unveiled one of the biggest deals in fast-food history – Burger King’s $11.4bn acquisition of Tim Hortons, the Canadian coffee-and-doughnut chain...As might be expected for a young man playing in a well-established game, Mr Schwartz’s forte at Burger King has been financial engineering. A native of Long Island, he focused on finance at university before honing his number-crunching skills during stints in the mergers-and-acquisition arm of Credit Suisse First Boston and Altair Capital Management, a Connecticut hedge fund. He joined 3G as an analyst in 2005 and made partner three years later. In 2010, he led 3G’s $4bn leveraged buyout of Burger King and became its chief financial officer. Two years later, he helped 3G sell a roughly 30 per cent stake in the second-largest US burger chain for about $1.5bn. He became chief executive last year.
Burger_King  CEOs  Cornell  alumni  dealmakers  Tim_Hortons  M&A  private_equity  Daniel_Schwartz  3G_Capital  financial_engineering 
august 2014 by jerryking
3G Capital, the latest private equity darling - The Globe and Mail
Aug. 25 2014 | G&M | JACQUELINE NELSON.

“It is something that’s embedded in our culture is that we are going to continuously look for areas to find efficiencies and to operate our business in a smarter way,” said Josh Kobza, Burger King’s chief financial officer, discussing costs on a recent earnings call with analysts. “That’s another area that will continue to be focused on over the next few years, in trying to be the most efficient operator in our sector. And that is really how we think about driving underlying growth in our business and those are the big focuses for our model going forward.”
3G_Capital  cost-cutting  Berkshire_Hathaway  Burger_King  efficiencies  hedge_funds  private_equity  Tim_Hortons 
august 2014 by jerryking
How Tim Hortons will take over the world
Sep. 23, 2010 | ROB Magazine | Dawn Calleja
Tim_Hortons 
april 2011 by jerryking

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