Justin Bieber almost single-handedly turned around Tim Hortons
Tim Hortons is singing Justin Bieber's praises Tuesday because his line of donuts just turned around the Canadian restaurant's fortunes.
The
coffee chain's parent company, Restaurant Brands International,
reported that sales rose 10.3% at stores open at least a year in the
fourth quarter of 2021. That reversed a 11% decline for the same quarter
a year ago.
In November 2021, Tim Hortons jumped on the celebrity meal bandwagon
to help boost its bottom line. It needed the starpower because sales
have been sagging at the chain because people were working from home and
disrupted people's pre-pandemic behavior
of stopping by the coffee chain for breakfast. It has also been working
to improve its core menu, upgrade its loyalty program and enhance its
digital strategy.
A
limited-time donut hole line, called "Timbiebs Timbits" collection
consisted of three donut flavors that was created by Bieber, including
chocolate white fudge, sour cream chocolate chip, and birthday cake
waffle, as well as branded merch.
The
Timbiebs promotion "was one of the more successful traffic-driving
initiatives in recent memory and outperformed our
internal expectations," said RBI CEO Jose Cil during a Tuesday analyst
call discussing the company's financial results.
The
collaboration led to "unprecedented social engagement and increased
appeal with younger guests," said Cil. "I'm a Belieber," he added, using
the term coined by Bieber's fans. "You can expect to see more from this
exciting partnership in the year ahead."
The
Canadian singer said that "doing a Tim Hortons collab has always been a
dream of mine," when the partnership launched, adding that he "grew up"
eating at the chain.
McDonald's (MCD) jump-started the celebrity meal trend in 2020 and it became a boon for the brand. Other chains copied the trend, including Tim Hortons' sister brand Burger King where sales in the US rose 2% in the fourth quarter.
Restaurant Brands International (QSR)
owns Burger King, Tim Hortons, Popeyes. The company's total fourth
quarter revenue rose to $1.55 billion — up from $1.36 billion a year
earlier. The stock was up nearly 4% in early trading.
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