Nfld. & Labrador

Hospital Tim Hortons never came close to predicted profit

The Tim Hortons at the Health Science Centre in St. John's didn't come close to making the profit the hospital administration predicted it would.
The Tim Hortons coffee shop opened at the Health Sciences Centre in 1995. (CBC)

The Tim Hortons at the Health Science Centre in St. John's didn't come close to making the profit the hospital administration predicted it would. 

In 1995, when the largest hospital in St. John's announced it was getting into the coffee and donut business, the promise of profits was high.

At the time, hospital administrator Gladys Peachey said the Tim Hortons would make hundreds of thousands of dollars. 

"We will make a profit of $250,000 to $300,000 a year. That will help us for instance … pay the salaries of seven nurses," said Peachy. 

Figures released by Eastern Health to CBC News on Wednesday show that in its first year of operation, the Tim Hortons only made half that profit.

Then yearly profits began shrinking despite growing sales.

The biggest loss — almost $300,000 — came in 2008. 

That was the same year the government of Danny Williams awarded a 22 per cent raise to public sector workers, including the hospital employees that work at Tim Hortons.

Eastern Health said public food services, including the Tim Hortons, would be privatized.

However, Eastern Health said corporation employees will continue to provide hospital patient food services.

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