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After critically examining all the locations, poor performing stores where to close. In December of 001 8 stores in Canada would be closing over past 5 weeks 0 stores already closed. This was Country Styles strategy to get itself back into the coffee shop ball game. That means all stores not closed are assessed on its ability to generate consumer traffic, present an inviting and consistent Country Style atmosphere and meet sales objectives. Today Country Style continues to operate 150 strong locations, these stores will continue to contribute positively to our business while they intend to "revitalize Country Style". Country Style clams that by downsizing it can rebuild itself and be more profitable.
Country Style was formally a division of Maple Leaf Foods. Today Country Style is owned by CAI Capital Partners and Company. Country Style was founded in 16 in Toronto of Ontario. Afterwards a following of 50 franchises opened in Canada. Country Style is concentrated in Ontario, British Columbia and Alberta. Although Country still is concentrated in Canada there is also international outlets in Malta, Guatemala, Brazil the Philippines, Indonesia and Thailand.
Country Style at the moment presently owes $15.7 million dollars to the Bank of Nova Scotia, and an additional $7. million dollars to unsecured parties such as landlords, franchisees and suppliers.
Competition since 15 had been brutal. This was the year when Tim Horton's was sold to Wendy's International Inc. (which is the rd biggest chain in the United States). In 15 Tim Horton's had a total of 100 outlets. At the end of 001 (after sold to Wendy's) Tim Horton's had a total 000 outlets and an additional 140 outlets in the States. Time Horton's benefited from steady and consistent advertisements (examples of such include Tim Horton's Camps, Sports teams, etc… Tim Horton's recently announced partnership with Imperial Oil. Adding an additional 00 Esso locations across the country serving up Tim Horton's donuts which are made fresh daily ensuring top quality. Tim Horton's company slogan is " always fresh".
The coffee shop market is saturated. Canada is home to more donut per capital then any other country. Another competition for Country Style is "Krispy Crème" Selling over 5 million donuts daily in the States. Recently they've entered the Canadian market starting off in Ontario. Country Style plans of defending territory by opening 0 new outlets in Ontario over the next years. To shareholders, owners, and operators this was not good news. Country Style's coffee is generally 50% of the sales through the store. The company slogan "Love at first Sip, freshly ground every time" this emphasizing on the coffee. Hoping that this will give it the edge it needs to rebuild it self.
I remember the days where I used to live in Espanola of Ontario. It was a small town and although there was a Tim Hortons down the street from Country Style we would always chose Country Style over the further stepped Tim Hortons. Country style should also work harder on giving that consumer convenience. Recently in Canada all Tim Hortons do not offer "direct payments (interact) and credit cards this is should give Country Style the edge it needs to re build bit self. Will once customer of many closed stores give the new country style a second chance?
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