International Law

Tim Hortons Jumping the Shark?

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Bloomberg News reports on Tim Hortons and Cold Stone Creamery

"Tim Hortons Inc., Canada's largest restaurant company, and ice-cream chain Cold Stone Creamery will create 100 co-branded stores in the U.S. to expand sales throughout the day.

A three-month test of two stores in Rhode Island led to a double-digit percentage gain in sales, said Kevin Blackwell, chief executive officer of Cold Stone parent Kahala Corp.

The companies are also developing menu items that incorporate products from both restaurants.

Tim Hortons is looking to broaden its American presence after a third-quarter loss in the U.S. prompted them to shut 15 locations in New England.

The coffee-shop chain competes with McDonald's Corp., Starbucks Corp. and Dunkin' Donuts Inc. at its 500 U.S. locations.

Cold Stone, which allows customers to choose from a variety of toppings to mix with their ice cream, wants to expand customer traffic during mornings and midday."

Has Tim Hortons finally jumped the shark?

Paul Steinberg, over at Blue Mau Mau, wrote about Cold Stone:

"Another "proven system" is Coldstone Creamery, which Jim Coen discusses today on BMM, and Michael Webster has cautioned that Coldstone's lack of capitalization should give a prospective franchisee pause.

Has Mr. Hayes looked at Coldstone's financials???

Take a look at them and tell me how a company can be wonderfully successful and have no capital. (Hint: one thing is to sell gift cards and then keep $2,800,000 so that you can show a profit of $250,000 for the year)"

Not sure that this is a very good combination at all.

Full post as published by Misleading Advertising Law on February 10, 2009 (boomark / email).