Ron Joyce, who co-founded the national institution nearly 40 years ago, this week lashed out at Tim Hortons' U.S.-based owners, saying he was "truly disappointed" by the move…He was particularly critical of the secrecy surrounding the new process for making the chain's doughnuts…"We've never tried to keep it secret," said Ms. Jameson, in an interview from company headquarters in Oakville. "We have tried to confine the publicity … but it was to keep the information going to our competitors to a minimum."
National Post
October 24, 2003
Tim Hortons 'tried to confine the publicity'
Pre-baked doughnuts: 'It's been good for us,' says president of Country Style
Chris Wattie
Tim Horton's "par-cooked" doughnut has become the industry's biggest controversy since the introduction of the muffin.
"They've fundamentally changed the way in which one of their products is produced … [and] really embraced the new technology," said Geoff Wilson, a food industry consultant based in Mississauga. "There's no question this is a significant development."
He said it was the biggest move in the multi-million-dollar business of dealing out doughnuts and coffee to Canadians since shops introduced muffins, then bagels and sandwiches to their menus.
Mr. Wilson said it is too early to say whether the move will be accepted by customers, but added the savings in cost and increased efficiency were "potentially monumental."
The controversy has brought a smile to the face of Patrick Gibbons, president and CEO of Country Style, one of Tim Hortons' leading competitors.
"Customers have noticed the difference and that's been good for us," he said.
Mr. Gibbons said his company tried and rejected a similar system to that used by Tim Hortons because customers did not like the end result.
"We abandoned it in less than three weeks," he said. "We're still baking them the way we should … and Tim's is sort of going against the grain.
"It's another owner, another philosophy, I guess."
For the past four months, Tim Hortons' doughnuts have been fried up in a giant factory-style bakery in Brantford, then frozen and shipped to regional warehouses across the country.
Once in the local doughnut shop, the "95% finished" product is popped into an oven for the remaining baking and served.
Ron Joyce, who co-founded the national institution nearly 40 years ago, this week lashed out at Tim Hortons' U.S.-based owners, saying he was "truly disappointed" by the move.
Mr. Joyce sold the company to Wendy's in 1995 for $620-million, a move he said he now regrets. He took control of the chain when his partner, NHL star Tim Horton, died in a car accident in 1974.
He was particularly critical of the secrecy surrounding the new process for making the chain's doughnuts.
Patti Jameson, vice-president of corporate communications for Tim Hortons Canada, denies the company tried to slip them onto store shelves surreptitiously.
"We've never tried to keep it secret," said Ms. Jameson, in an interview from company headquarters in Oakville. "We have tried to confine the publicity … but it was to keep the information going to our competitors to a minimum."
Ms. Jameson said the new doughnut production system is still in the testing phase, but acknowledged it is in place everywhere across Canada but British Columbia and the Atlantic region.
"We're really very pleased and delighted at how well consumers are taking to the new product," she said.
"That's not to say concerns haven't been expressed by some customers.''
Ms. Jameson insisted that so far, sales have been unaffected by the controversy. "We are seeing no decline at all in doughnut sales," she said.
"In the last quarter, we sold over 100 million doughnuts and 225 million Timbits."
moc.tsoplanoitan|eittawc#moc.tsoplanoitan|eittawc
© Copyright 2003 National Post
Brought to you by WikidFranchise.org
Risks: Deception, Veil of secrecy, Treat franchisees like family, Canada, United States, 20031024 Tim Hortons