It appears to be a Canadian crisis in the making.
Franchisees of Tim Hortons, in a letter to their parent company, Restaurant Brands International, expressed dissatisfaction over operational changes, as well as other changes that threaten the reputation of the brand.
According to franchisees, one of the issues is that RBI is on a cost-cutting campaign that’s leading to product shortages, declining quality, and, in some instances, issues with safety.
Tim Hortons merged with RBI, who is also the parent company of Burger King, back in 2014.
RBI is controlled by Brazilian private equity firm 3G Capital.
Their stock performance might leave shareholders happy, as it’s higher by 42 per cent over the last year, but obviously, the franchisees’ argument is cost cutting for short-term gains, as they sacrifice what’s led to their long-term viability and success.