Who’s Really to Blame for the Tim Hortons Fiasco? | Yahoo! Finance

While the backlash from the recent debacle following Tim Hortons will likely be a drop in the bucket when considering its actual impact on financial results, I do believe the problems could have been minimized or even avoided altogether if management had communicated with its franchisees more effectively.

Proper communication makes all the difference.

Consider when Netflix Inc.(NASDAQ:NFLX) first hiked its prices back in the day. Subscribers dumped the service on a whim and shares plunged. Netflix shouldn’t have hiked rates, right? Not so fast. Consider the most recent Netflix price hike, which clearly outlined to subscribers that the increase would go towards funding the expanding menu of original programming. Subscribers weren’t too rattled by it, and many were even open to paying up for the promise of more new content.

While Netflix has likely gained substantial pricing power since its first hike, the point is that a sugar-coated delivery of bad news will be better digested by the folks on the receiving end.

Instead of hiking prices on franchisee supplies and quickly regretting the decision, management should’ve firmly hiked prices and explained that price hikes on select menu items would also be increased to offset some of the pains from imminent minimum wage hikes.

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Who’s Really to Blame for the Tim Hortons Fiasco?.

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