By Tamsin McMahon - Wednesday, November 21, 2012 - 0 Comments
Despite big investments to spruce up stores and expand menus, once-thriving restaurant chains are suddenly struggling to get ahead
Analysts were understandably skeptical this month when Tim Hortons interim CEO Paul House blamed the company’s disappointing third-quarter financial results partly on “capacity issues” at some of its restaurants. Canada’s iconic coffee-and-doughnut chain reported that it’s on track to miss its annual growth target in part because lineups at some of its stores were simply too long. “In some ways, it is not good news, but in other ways, it is good news in the sense that . . . we’ve got lots of business,” House told a conference call last week.
It’s a remarkably positive spin on what has been an off year for the ubiquitous coffee chain. Sales growth at existing Tim Hortons stores has been below two per cent for the past two quarters, while growth of 2.3 per cent at U.S. stores fell well below its target of five per cent. What growth the company has seen has been from customers spending more at each visit, even as traffic to its stores declined. The report wasn’t all bad news. The chain did manage a $105.7-million profit for the quarter, up two per cent from a year ago. Continue…
By Anne Kingston - Wednesday, April 25, 2012 at 11:36 AM - 0 Comments
From Twin Peaks to the Tilted Kilt, sexed-up dining chains are popping up everywhere
If you’ve not yet heard of “breastaurants,” gird yourself: they’re about to roll out across Canada. And this new generation of mammary-centric casual dining chains—with their slick thematic formats, man-cave mentality and hyper-friendly female servers schooled in “touchology”—makes Hooters seem downright quaint.
First out of the gate is Tilted Kilt, a Tempe, Ariz.-based “Celtic”-themed sports pub chain whose servers wear tiny tartan tops and micro-mini kilts. Originating in Las Vegas in 2003, the Hooters-Brigadoon hybrid has 60 locations in the U.S. with 15 franchises in development. Its first Canadian location opened in Edmonton last December; a Toronto franchise will open in June, with a Calgary outpost slated for July. “We’re racing to have it finished before Stampede,” says Mark Hanby, Tilted Kilt’s vice-president of development. Hanby admits the company “had serious butterflies” about opening in Edmonton, but now expects the chain’s average annual per-location sales of US$2.7 million to be higher north of the border, in part because of higher prices. The Calgary location is 8,000 sq. feet, bigger than the chain’s average 6,000- to-6,500 sq.-foot floorplan in the U.S. Hanby, who has scouted the country, says Ottawa, Halifax and Saint John, N.B., are ripe for the concept. He hopes to see six locations in the Toronto area by the end of 2013.
Over the past decade, the “breastaurant” has emerged as the second-fastest growing sector in the casual dining industry behind upscale burgers, says Darren Tristano, an industry consultant with Chicago-based Technomic, Inc., who coined the “breastaurant” neologism in 2007. Puns and plaid go with the territory. Addison, Tex.-based Twin Peaks, founded in 2005, has 20 U.S. locations with plans for another 30 by year-end. It exploits an Alpine lodge theme with “scenic views” provided by “Lumber Jill” servers in skimpy plaid shirts and hiking shorts. Canada is on Twin Peaks’s radar, says marketing director Meggie Miller: “We’ve received lots of interest and we’re open to seriously considering qualified [franchisee] candidates.” Meanwhile, regional players are thriving in the U.S., among them Brick House Tavern & Tap, Honey Shack, and Bone Daddy’s House of Smoke, which boasts “BBQ, beer, and Daddy’s girls” in midriff-baring sweaters.