Inside the brutal transformation of Tim Hortons
Justin Poulsen
A Brazilian company, 3G Capital, took over the iconic Canadian chain three years ago. The chain started in 1967 and grew on friendships and kinships, eventually becoming part of the fabric of Canada. But since 2014, 3G has purged head-office staff in a "mechanical" way, slashed costs, squeezed suppliers and erased more than 50 years of corporate culture.
The goal is for 3G is to increase efficiency, streamline operations and lower supply costs, but as Marina Strauss reports, 3G has never faced a brand like Tim Hortons. There's a danger cost-cutting will go too far and damage its long-term prospects. As Tim Hortons drifts away from its deep Canadian roots, its brand could start to get diluted and feel like any other fast-food chain.
The Globe began hearing a few years ago from various sources that the new owners had swept in like the second coming. Ms. Strauss spent months trying to get an interview with top executives, but to no avail. Despite promises of interviews and bargaining for access, in the end, they wouldn't answer any questions, even by e-mail. Editor of Report on Business magazine Duncan Hood writes about the story-behind-the-story and provides a glimpse into the shifting dynamic between big business and the media in an age of fake news and corporate spin.
Ms. Strauss picked it as her favourite story that she wrote this year:
"I was able to shed light on festering problems at the iconic fast-food chain that had not been explored previously. It's a chain that almost every Canadian is familiar with, so the story resonated with a lot of readers. And the story resulted in changes: Soon after the story appeared, Tim Hortons franchisees set up an association to represent them in their grievances, warning the company's cost-cutting campaign was resulting in product shortages, declining quality and even safety concerns that were harming the brand. While the company denied the existence of quality and safety issues, the president of Tim Hortons apologized to the franchisees for not listening to them and pledged to improve their situation. He subsequently modified some internal practices although disputes are ongoing."
ROB reporter Tim Kiladze also picked it as his favourite read of the year:
"Most Canadians put Timmy's on a pedestal, considering the chain to be part of our national fabric. The current reality is that foreign owners dramatically slashed costs and fought with franchise owners. Ms. Strauss painted a troubling picture of the brutal transformation inside a national icon."
So did ROB reporter Susan Krashinsky Robertson:
"Marina Strauss is an incredible, dogged reporter, and wrote one of the best business stories of the year. The company blocked her requests for access at nearly every turn, but she got the story anyway and painted a picture of widespread cost-cutting that could potentially do permanent damage to this storied Canadian brand. Such publicly-traded companies have a responsibility to their shareholders, to the consumers upon whom their profitability depends, and in this case, to franchisees. The reporter met a dismissive media-relations response and a reticent management team and refused to back down. Her work is worth reading."
Deportation in Trump's America: 'My life, my house, my children. Everything in one second'
Ms. Morelos and Mr. De Jesús are shown in a family picture.
TY WRIGHT/THE GLOBE AND MAIL
Beatriz Morelos was heading home from work one Sunday in July when an officer stopped her in a routine traffic stop. She was handcuffed and put in a local lockup, flown to Texas and forced to walk across the border. If she was pulled over a year ago, before Donald Trump was elected President and made immigration enforcement a priority, lawyers and experts said, she would likely still be living with her husband and four kids in Ohio. Ms. Morelos was an undocumented immigrant in Mr. Trump's America – and that determined what happened next.
The Globe's Latin America Bureau Chief Stephanie Nolen picked this as her favourite read:
"Joanna Slater took advantage of the magic of a passport to tell the story of a separated family from both sides of the U.S.-Mexico border. It was an incredibly painful read. But it also made real in the most visceral way what the Trump administration policy on migration means for real parents and children who are left with terrible choices."
Black on Bay Street: Hadiya Roderique had it all. But still could not fit in
Hadiya Roderique.
LUIS MORA/THE GLOBE AND MAIL
On her way to becoming a lawyer, Hadiya Roderique learned that success isn't necessarily about merit. It's also about fitting in. In her essay, she explains how as a person of colour, that's a roadblock that comes up again and again.
Jessica Leeder, The Globe's Atlantic reporter, picked this as her favourite piece of 2017:
"Written in a distinct voice that has an intimate, confessional tone, Hadiya Roderique's personal essay grabbed me from the get-go, but went far beyond satisfying my inner voyeur. In confessing her struggles, which begin with an inner debate over whether to reveal her "blackness" on a résumé – something I, as a white Canadian, had simply never had to think about during a job search – Ms. Roderique cracked open a window many of us have never peered through. The world she exposed on the other side shocked me, saddened me and made my heart swell for her. May we all, one day, be so brave."
Staring back: Are a spiritual leader's sexual relationships a calling or a dangerous abuse of power?
Alberta's John de Ruiter has styled himself as a spiritual leader, a Messianic figure with a piercing gaze. But over the years, allegations of sexual impropriety have surfaced and a young woman has gone missing, leaving her family – and a growing number of adherents – seeking answers.
Feature writer Ian Brown picked it as one of the stories he remembers the most:
"Jana Pruden's haunting story Staring Back, about the life and times and messianic charisma of Alberta's John de Ruiter, the man who built a cult around his gaze. There are any number of reasons why I remember it – the choice of the menacing de Ruiter as a subject, the depth and breadth of the reporting – but I'll continue to remember it because of Jana's distinct voice, the style of her vivid but precise sentences. The value of distinct literary voices is often played down in this age of endless information, and in the newspaper business. But voice is the only reason we remember the stories we remember, and readily forget all the others."
Polaris winner Lido Pimienta on a turning point for women in Canadian music
Polaris-winning artist Lido Pimienta performs at feminist music festival Venus Fest in Toronto on Saturday, September 30, 2017. (Galit Rodan/The Globe and Mail)
Galit Rodan/The Globe and Mail
Singer Lido Pimienta beat out heavies such as Gord Downie, Feist and Leonard Cohen to win this year's Polaris Music Prize and delivered a fiery acceptance speech where she raged against "white supremacy." Now, the political and boundlessly self-assured singer embodies a radical departure for Canadian women in song.
Reporter Dakshana Bascaramurty picked this story as her favourite read:
"Despite her many recent accolades, I'd never heard of Lido Pimienta before I read Zosia Bielski's lively profile of her. I'm shamefully disconnected from the Canadian music scene and Pimienta's music, on the surface, didn't seem like it would be appealing to me. But this story did what all great journalism can: it pulled me into an unfamiliar world, made me empathize with a character I'd previously known nothing about and took me through a wide range of emotions. Ms. Bielski's observations of Pimienta (and the people around her) were unexpected, deeply revealing and often very, very funny. I'll never forget the outrageous scene in which Pimienta's mother calls up her daughter's ex, daring him to publish intimate photos of her daughter online. This was definitely the most memorable profile I read in 2017."
Investigation: Home Capital mortgage lender was mere hours away from collapse
In the early hours of Monday, May 1, exhausted representatives for Home Capital and a group of lenders hung up the phone in frustration. A deal to give the company an emergency $2-billion loan appeared to be falling apart. Directors at the mortgage firm felt that without the money, they wouldn't be able to open for business a few hours later.
Eight reporters were assigned to cover this dramatic story of a financial institution's near-collapse.
ROB reporter James Bradshaw picked it as his favourite story:
"It stands out to me for a couple of reasons. Firstly, it was the biggest story in Canadian business for a while, and we were the first to provide a definitive account of how it went down – something that's of real value because a run on a financial institution is so rare these days and understanding how it happened is genuinely important. The other thing was the team effort it took to produce this reporting on the fly, while covering the daily news file. We had such a wide range of people working this story day after day, and you can see it in the eight bylines on the story."
The convert: A young B.C. man comes to Allah
Parents Kelly and David Bathurst read to their children Nura, 2, and twins Ibrahim and Musa are their home in Burnaby, British Columbia on March 9, 2017.
Ben Nelms/The Globe and Mail
David Bathurst's journey toward Islam began with a quest for late-night pizza. One night when partying he struck up a conversation with a friendly busker, which led to him soon getting in contact with a local mystic who was giving free Arabic lessons. For Mr. Bathurst it was a spiritual epiphany and would begin a journey from a lost youth to one of faith and prosperity.
B.C. reporter Mike Hager picked this as his favourite story that he wrote for the year:
"The story of a young person in crisis finding serenity in a new religion has been told ad nauseam. But I thought there was some value in detailing how a white Canadian found Allah, rather than Jesus, and somehow managed to step off the "conveyor belt to eventually becoming a terrorist," a fear many North Americans harbour in regard to Muslims that is not borne out by data."
Canned: Newfoundlanders mourn the end of long-time staple Potted Meat
A can of Potted Meat is examined on Tuesday by Maureen Power, curator of history at The Rooms, an archive, art gallery and museum in St. John’s. Ms. Power recently appealed to people to donate cans to an exhibit that includes other iconic foods.
Darren Calabrese/The Globe and Mail
If you are a mainlander, writes The Globe's Atlantic reporter Jessica Leeder, chances are that you just raised your eyebrows and have a few questions, including what, exactly, Potted Meat happens to be. But if you are a Newfoundlander, the mention of Potted Meat ignites instant nostalgia: It is a reminder of what childhood tasted like.
Sports columnist Cathal Kelly picked this as his favourite read of the year:
"We've spent a century and a half trying to sum up the regional differences in Canada. Ms. Leeder manages it in 800 words."
An artist’s illustration shows two neutron stars colliding and merging with each other, sending out clouds of material and long bursts of gamma rays. The grid represents space-time being warped by gravitational waves from the collision.
A. SIMMONET/NSF/LIGO/SONOMA STATE UNIVERSITY
Scientists have spotted ripples of gravity from a violent collision of two neutron stars, shedding new light on the nuclear upheavals believed to have created much of the universe's heavy metals.
Assistant national editor Madeleine White selected this as one of the favourite stories she assigned:
"Every day as journalists we get to chronicle little bits of news that in their totality become moments in history. But, it's rare for a reporter to have a chance to mark history as it's happening, which is exactly what science reporter Ivan Semeniuk got to do with this awe-inspiring story about the first detection of two neutron stars colliding, an event known as a kilonova. Given that this was a major scientific discovery, journalists all of the world reported on it. But Ivan used his expertise to write about the complex matter in an authoritative and clear way. Plus, I'm pretty sure he was the only person to start the story with an exclamation point. "
War hero, spy and fugitive Jewish German: A man's search for his father's past
Marc Stevens poses for holding a portrait of his father Peter Stevens, in Toronto, Friday August 4, 2017. Peter Stevens was British air force that was in fact a German-born Jew named Georg Hein, but his mother had sent him to England ahead of the Nazi takeover.
Mark Blinch/Globe and Mail
Marc Stevens' father, Peter, was a decorated Second World War aviator for the British who had immigrated to Canada, but Marc was was told little about his father's past. It wasn't until Peter's death in 1979 that Marc began a two-decade-long effort to understand his father's mysterious story. It is a story that ended this year when Marc became a German citizen.
Reporter Tu Thanh Ha picked it as the favourite story he wrote this year:
"As a reporter who often writes obituary articles, I've learned to be careful about family lore and children's recollections of their parents' heroic past. I always try to see if it is matched or corroborated by official records or contemporary news accounts.
So of course, I was cautious when Marc Stevens contacted me this year and told me that his father, a Jew who left Nazi Germany, was a fugitive in London, then fought for Britain under a bogus name, then became a spy before emigrating to Canada. But he had documents and this incredible story checked out."
Edmonton Othello production crossed line from subversive to regressive
In February, an Edmonton community theatre cancelled a production of Othello that was to feature a white actor in the title role in response to criticism on social media that it characterized as "threats."
Arts editor Craig Offman picked this as one of the stories that stood out to him this year:
"The minor international debate that erupted around a show that otherwise would have been completely ignored by the media was of a flavour that would become very familiar over the rest of 2017."
The Globe's theatre critic J. Kelly Nestruck had this to say about the story:
"Is it censorship to cancel a theatre production (or a television documentary or campus appearance) that has come under fire before it has happened – or is it just listening to criticism? Can one kind of free speech (online rebukes) really be viewed as a threat to another kind of free speech (a theatre production, a magazine editor's editorials or sassy tweets, university professors' academic freedom)? And is free speech really under threat in any serious way – or is the media making mountains out of molehills (a dispute at an amateur theatre company; a misguided meeting between a professor and a teaching assistant over tutorial materials)?"
Rising young actor Jonah McIntosh left a mark on and off stage
Jonah McIntosh and the cast of 18:37: The Farmers’ Revolt.
David Cooper
Jonah McIntosh was a rising theatre star before he suddenly, inexplicably took his own life in July. But in a short time, he left a mark both on and off the stage.
Mr. Nestruck selected it as the most memorable piece he wrote this year:
"I remain deeply honoured that the family, partner and friends of Jonah McIntosh and his colleagues at the Shaw Festival were so generous as to tell me stories of the life and spirit of this young actor after his death this summer. I've had Jonah's rendition of John Legend's
All of Me in my head all fall since his mother, Lisa, played it for me on her laptop – and I will be thinking of her and everyone who loved him this holiday season."
Here are some other big reads that resonated with our audience this year:
Frontier injustice: Inside China's campaign to 're-educate' Uyghurs
In the arid Turpan region, the largely Muslim Uyghurs live in oasis areas.
NATHAN VANDERKLIPPE/THE GLOBE AND MAIL
The Uyghurs are members of a largely Muslim minority in far western China's Xinjiang region. They have been accused of harbouring radicalism and are now the target of a campaign by Chinese authorities to reconfigure their thinking. To do so, authorities are reviving some techniques that decades ago helped the Communist Party sweep into power and solidify its ideological grip on the country and expanding on a playbook used to squelch dissent in Tibet.
The Globe's Asia correspondent headed to Shanshan to see what was going on only to learn of "training centres" and men who vanish. In a powerful and poignant way, he told the story of one woman whose husband was called to the police station and then disappeared with no trial, court ruling or charges. She says her kids keep asking when their dad will be back, but she doesn't have any information. People can stay for months isolated from family and friends repeating political slogans and proving their loyalty to China. In reporting this story, even Nathan VanderKlippe was detained and had his computer seized.
Meet Chrystia Freeland, the woman defining Canada's foreign role
Todd Korol / The Globe and Mail
One of Prime Minister Justin Trudeau's most important personnel decisions was moving Chrystia Freeland into the role of Foreign Minister. Born and raised in Alberta and educated at Harvard, she launched her career as a young newspaper editor covering post-Soviet Russia's corruption-riddled experiment with capitalism and Vladimir Putin. As NAFTA talks continue, she is now tasked with saving Canada's most important economic relationship despite only being three years into her political career. Adam Radwanski takes an in-depth look at Ms. Freeland, reporting she has an unusual ability to charm and disarm people in addition to having academic smarts, real-world knowledge and speaking multiple languages.
While reporting the story, Mr. Radwanski ran into Ms. Freeland in an airport lounge waiting for a delayed flight. If she were representing a different country she might not have been flying commercial. While some cabinet ministers may have been throwing a fit, she offered to watch his luggage so he could get a coffee. "I was disarmed," Mr. Radwanski says.
Mysterious symptoms and medical marijuana: Patients are looking for answers
Scott Wood in Wainwright, Alberta.
AMBER BRACKEN/THE GLOBE AND MAIL
Scott Wood had been losing weight for weeks. His skin developed strange blistering rashes, he couldn't stop coughing, he was spitting up gobs of thick, clear mucous that looked like Vaseline and he was at the ER seven times in six months. Eventually, Mr. Wood learned the medical marijuana he was prescribed for a back injury was contaminated with several dangerous pesticides banned by Health Canada. The federally licensed producer recalled its products, but the company told its customers there was nothing to be concerned with. That's when The Globe got involved, only to learn Mr. Wood's prescriptions not only contained the two banned substances that triggered the recall, but also three pesticides outlawed by Health Canada.
In a few months, the federal government will end nearly a century of prohibition on cannabis, in a move affecting millions of Canadians. It is one of the most sweeping new policy decisions the federal government has undertaken, relying on licensed producers, such as this company, to supply the new multibillion-dollar retail market. Grant Robertson's investigation raises questions about oversight, quality control and if growers are pushing for profits at the expense of customers' health. As a result of the investigation, Health Canada now requires all federally regulated medical marijuana companies to submit to mandatory pesticide testing before a product can be sold.
Inside Western Canada's wealthiest dynasty – and the question of who will run it next
Thomas Fricke
Over the past 160 years, the Richardson family has quietly built a $9-billion prairie powerhouse. Little-known outside of Canada's agricultural heartland, the company that started trading grain is now Canada's largest independent, privately owned enterprise. CEO Hartley Richardson is hoping to retire soon, but it's not evident who, if anyone, from the sixth generation could replace him because not one of them works for the family firm. The Richardsons allowed Sean Silcoff unprecedented access to interview 12 members of the notoriously discreet clan as they try to figure out who will run the company. Directors and executives of James Richardson and Sons Ltd. candidly reflected on their successes, their failures and their outlook.
As Duncan Hood writes in ROB Magazine, 90 per cent of the world's companies are family-run businesses including such modern marvels as Wal-Mart and Samsung. They can thrive because of their ability to think long term. But the odds of keeping the dynasty are against the Richardsons. Think about the Eatons, Bronfmans or Bassetts, who were chased into the history books following takeovers or asset sales. Only 3 per cent of U.S. family enterprises last into the fourth generation or beyond. Now many of the sixth generation of Richardsons are in no rush to return to the family business and the family is questioning if the next CEO needs to be a Richardson at all.