Doughnut chain hires distributor, lays off 15

Country Style Food Services Inc. is cutting 15 jobs as it reaches outside the company for supply-distribution services.

The Toronto Star
January 21, 2002

Doughnut chain hires distributor, lays off 15

Country Style Food Services Inc. is cutting 15 jobs as it reaches outside the company for supply-distribution services. The firm, which calls itself Canada's third-largest coffee and doughnut franchiser, after Tim Hortons and Coffee Time, has awarded a $150 million distribution contract to family-owned Flanagan Foodservice Inc. of Kitchener.

The multi-year deal covers distribution services to all Country Style and Buns Master stores in Ontario.

Fifteen jobs will be lost as of March 31 with the closing of a dry-goods supply warehouse in Richmond Hill, Patrick Gibbons, Country Style's chief executive, said in an interview yesterday.

"The outsourcing of distribution services better positions Country Style for its planned growth," Gibbons said in a release. "Having distribution services in-house has effectively served Country Style's needs for many years, but as we enter a period of rapid store growth, the company needs to refocus its resources on our retail operations and put non-core activities such as purchasing and logistics management into the hands of a professional distribution company like Flanagan Foodservice."

He said Flanagan can provide "one-stop" service for frozen, refrigerated and dry-good supplies. The warehouse focused on dry goods, including flour and cups.

Country Style has more than 300 franchised and corporate locations across Canada operating under the Country Style brand name. The company also operates more than 50 franchised locations using the Buns Master brand.

Flanagan Foodservice is one of the largest privately owned food-service distributors in Canada and serves the Ontario market from branches in Kitchener, Owen Sound and Sudbury.

Canadian Press


Risks: Canada, 20030121 Doughnut chain

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