Tim Hortons Inc. has squelched what could have become a PR disaster over the Timbit Affair. At the same time, the company has been served a stinging lesson on how following franchise rules too zealously can stifle the ability of front-line workers to keep the customer satisfied.
The coffee and doughnut chain, one of the most valued brands in the country, rehired a London, Ont. employee just hours after she was fired for giving away one 16-cent timbit to the restless child of a regular customer.
"When the dust settles, Tim Hortons did absolutely the right thing, which is to reconsider and say, 'if we had to do it over again, we wouldn't do it quite this way,' " said Hugh Christie, a lawyer who heads the labour and employment national group at Gowlings.
Media outlets jumped on the tale of the 27-year-old single mother of four, shunted aside by a Canadian corporate icon. Head office didn't take long to respond. Rather than go on the offensive, Tims ate humble pie.
Print Edition - Section Front
More Report on Business Stories
- A love of animals sends a boy on a mission
- Why Jacques Lamarre sees growth in maintenance
- Lost in space
- GMP Capital's profit plunges as markets fall, liquidity shrinks
- Strong job and trade statistics mask trouble
- Searching for lost treasures in the Street's trash
- Go to the Report on Business section
Hours after her firing, Nicole Lilliman was reinstated. But she doesn't want to go back to the same store.
Ms. Lilliman will now work at a nearby location, said spokeswoman Rachel Douglas. She will be paid for the missed days.
"When something comes out of London and gets this amount of press coverage, it's a learning [experience] for the entire chain," Ms. Douglas said. "The lesson is appropriate ways to treat your staff. Using proper processes ... and making sure everyone's aware."
She stressed that the whole sorry saga was a "mistake that shouldn't have happened," and that franchises set their own policies on freebies.
Events unfolded Monday, when a long-time customer came in with a fussy toddler. Ms. Lilliman, who's worked at the store for three years, spontaneously gave the child a doughnut hole to quiet her.
She thought nothing of it, according to the London Free Press, until Wednesday, when she was hauled into the office and told she'd been caught on video giving away free food.
The experience "was hell," she told the newspaper. "When I told my daughter I lost my job she started crying. She's only six, and she doesn't know. She said 'we won't have any food any more.' "
The fate of her manager is still being decided.
It certainly hit a nerve with the public. Globe readers posted more than 800 comments on the story yesterday, making it one of the most-talked about stories in the history of globeandmail.com.
The Timbit Affair offers insights into how much discretion individual employees should have, and how front-line workers are the real faces of the corporate brand.
"The best customer service happens when people on the front lines have decision-making power and it's assumed that they can problem-solve on the spot," said Kadi Kaljuste, senior vice-president at consultant firm Hill & Knowlton, who praised Ms. Lilliman for using common sense.
Giving employees leeway to figure out solutions isn't a new idea. U.S. fashion retailer Nordstrom Inc. and airline WestJet Airlines Ltd. have both won plaudits for their customer service - and handing that trust to employees is partly why, Ms. Kaljuste says.
It's an important reminder of how "the brand values cascade right down to the front line," said Paul Cubbon, marketing instructor at UBC's Sauder School of Business.
So what are policies like at Tims competitors? Dunkin Donuts lets stores set policies on giveaways. Starbucks lets customers try food and drinks.
30