Tim Hortons is an undisputed brand. It’s the king in coffee and quick breakfast. It is a staple of Canadian culture, identity and lifestyle. It’s difficult to travel anywhere in America without visiting one of the over 3,280 restaurants or 811 American eateries. Ryan Murray once said, “Outside Hockey night in Canada… there’s few institutions or businesses that have blended into our nation’s character as TIm Horton.” Tim Hortons’ marketing strategy focuses on being Canadian and how it is defined by different people. The founder was a former Maple Leafs player who is now a man many call “embodying Canadian characteristics”. Stephen Harper, the Prime Minster, chose to go to a Tim Hortons Headquarters rather than a UN summit. He stressed how he was celebrating Tim Hortons’ repetition. It would be difficult to stop a company that is so deeply rooted in Canadian politics and history, like Tim Hortons. It’s reign is now in doubt after being acquired by RBI. Every business strives for expansion and increased sales. Tim Hortons tried to expand internationally, but they took resources away from Canada. Their core values have been lost with the RBI acquisition of Tim Horton.

Tim Hortons’ philosophy of putting customers, communities and employees first is what gave birth to their brand. One of their first successful ads featured an elderly customer who walked up hills each morning to get her coffee. The commercial was based on real stories gathered through group interviews. Tim Hortons places such a high value on customer service that it is impossible to achieve greater success without building relationships with existing and potential customers. Recent business actions have shown a growing disinterest in their values, which has adversely affected their business. RBI is known for cutting costs and budgeting tight to maximize profits. When they acquired Tim Hortons, their first move was to concentrate on technology. They were able to achieve the highest profit at the lowest price through technology. They found a cheaper and more technologically-advanced distributor for their coffee. Tim Hortons is known for its high quality coffee, but their new distributor was not as good. Tim Horton’s distributor was demolished, which discouraged customers from McDonald’s. Tim Horton has been criticized for cutting costs, which have negatively impacted customer experience and employee relationships. Tim Hortons, a multinational company, is promoted as a local brand. This makes it a prominent Canadian brand. Every action taken within the company is reported everywhere. Many companies did not know what to do when the minimum wages spiked in January 2018. Some companies raised their wages while others reduced their workforce size. Tim Hortons dealt with it the worst. Ontario franchises took away benefits after the 33% minimum wage hike. This led to a strike. Kathlyn and other politicians supported the strike. The greatest tragedy of these events was that Tim Hortons’ children were the first to lose their benefits. Tim Hortons said that this wasn’t in line with their core values. Starbucks is different. They value employee relationships and strive for employee happiness. This results in better customer care. Customers who are treated well are more likely return to the company than customers who aren’t. This will have a major impact on sales, customer relations, and reputation.

This company’s disconnect with its beliefs has caused a severe disconnection from its customers. New management has increased the prices of supplies, especially coffee. The company has been charging franchisees $17,650 and more for their supplies in 2017. The increase in coffee supply directly affected the menu prices. It was a 2 cent increase for each cup. It doesn’t seem like this has much of an effect, but it was noticed by consumers and had an impact on the relationship they have with their coffee shop. Tim Hortons has reduced their involvement in community programs, as many sources report. Tim Hortons used raise $60, 000 to $100, 000 annually for various community services like hockey, local barbecues, and swimming days. These programs are not popular with the younger generations. RBI does not plan to continue the legacy. The Great White North Group believes the small things that made Tim Hortons special are gone. It is important to remember, however, that both franchise owners as well as their employees know which side they’re buttering. They succeed when their communities are served, not shareholders. RBI. . . This reality seems completely different.” Tim Hortons has been voted Canada’s favorite coffee since October 2017. Mc Cafe was the top-rated coffee chain, with Tim Hortons being 4th. Tim Hortons’ reputation is being ruined by such widespread coverage.

Tim Hortons’ greatest contribution to its success lies in consumer relations. Building trust is key to bringing back customers. RBI appears to be trying to end Tim Hortons’ past successes by creating bad press and lacking employee connections. Without this, the company could lose its Canadian heritage. Tim Hortons has had to contend with stiff competition over the past few years and it has lost its title as Canada’s top-selling coffee company. While Tim Hortons has had success in the past, it is now facing stiff competition from Starbucks and McDonald’s. Tim Hortons was forced to change their ways to encourage customers to prefer their brand of coffee over other brands. Tim Hortons finds itself in a situation where it tries to please everyone, but is not able to compete with better-quality products. Marc Caira is the chief executive officer at Tim Hortons. He wants to emphasize efficiency in drive-thrus by reducing menu items to make it simpler and quicker to order. Starbucks has a variety of coffees, frappuccinos and other beverages. Starbucks’ drive thru system attracts customers to their stores without sacrificing product diversity. The two-way video screen was set up to appeal to the customers’ desire for a closer interaction with their staff in places they might not expect. Tim Hortons fails to match Starbucks’ success in drive-thrus. Tim Hortons offers up something to the consumer, but Starbucks gives it away.

Tim Hortons also lacks the ability to appeal specifically to certain demographics by the design of their stores. Starbucks caters specifically to countries by creating stores that are themed and aesthetically matched to the geographic landscapes they are located in. Tim Hortons, however, simply copies and pastes its store design. Each Tim Hortons store is identical, while many Starbucks locations have their own unique identity. Tim Hortons poor consumer awareness is one of its reasons it hasn’t been successful in regaining the lost customers. Tim Hortons also has to deal with a lack of consumer awareness. The company tried to match McDonald’s with their extensive selection of breakfast, lunch and dinner items. McDonald’s managed to break into the breakfast/coffee segment by emphasizing quality over quantity in 1993 with McCafe, while keeping the same standard for lunch/dinner. Tim Hortons however has been producing poor quality products that impress no one and a decline in the quality of their coffee. Maclean’s Magazine’s Coffee Ranker surveyed the Canadian coffee industry and found that Tim Hortons was ranked 4th in Canada for 2017. Ironically, Starbucks, Second Cup, McDonald’s and Second Cup beat the company. Van Houtte and A&W were only a few thousand votes behind Tim Hortons, placing them in a difficult spot. Tim Hortons cannot sustain itself in Canada if they lose consumer preference.

The company has tried to expand its business into new markets like the U. It has had limited success in doing so. It has 850+ U.S. stores. It has 850+ stores in the U.S. Instead of taking lessons from McDonald’s and improving the products they sell, Tim Hortons has been aggressively producing sub-par meals/dinners that no one wants. McDonald’s continues to grow their market share, despite their failures. The biggest decision was their purchase of Mother Baker, Tim Hortons former coffee supplier. RBI purchased Tim Hortons in 2014 and they began brewing coffee. McDonald’s then bought it. Their new coffee was Tim’s old coffee. As people realized that they could find the flavor they wanted elsewhere, this caused a major shift in consumer preferences.

McDonald’s has started offering healthier options, as well as Starbucks. This appeals to the millennial generation that wants a quick bite but doesn’t sacrifice quality. Tim Hortons has healthier options than McDonald’s, but their quality control is not as good. Tim Hortons is falling behind its competition because they continue to rely on their Canadian heritage as a business strategy. However, this strategy is not sufficient to draw in customers who have many choices. It is no longer appealing to customers in the same way that competitors do. Tim Hortons still holds a leading position in Canada but is now working to improve its image after years of negative press and strikes. Tim Hortons should be focusing on menu development, expanding into new market segments, and providing new products to current and potential customers.

Tim Hortons has mass-markets in all Canadian demographics and psychographics. This is due to the convenience of their products and low prices. Studies have shown that Generation Y & Generation X prefer quick-service restaurants and spend more per meal. Tim Hortons’ mission is to draw potential customers, by offering any improvements in their brand that are in line with Canadian Coffee Market consumers’ needs and wants.

Tim Hortons has a great solution to regaining recognition: review customer research with younger Millennials and immigrants about their tastes and preferences. Invite key suppliers and customers to send in their suggestions and ideas for development. For introduction, target key days and seasons. A standard menu is available at all restaurants. This allows customers to choose from a broad selection of products throughout the day. Tim Hortons recently changed their layout to show customers the variety and freshness of their products. All products come with the Tim Hortons logo. Additionally, their packaging is convenient and easy, which reinforces their desire to be remembered as a high-quality and affordable store with fast and efficient service. QSRs are a popular choice for all types of customers due to their low prices and wide variety of food that suits all gender and psychographic variables. QSR customers appreciate the value of QSR’s low prices and efficiency. High-quality products and a wide selection are also benefits for customers. Customers have the option to choose what they want from a value-priced meal. Customers can choose from a wide range of Tim Hortons products. Tim Hortons is like Canadian Tire or President’s Choice. They offer great value for money and help customers discover new recipes.

Tims’ menu should be both familiar and comforting, as well as offering some excitement. Tim Hortons’ greatest weakness is their lack of a lunchtime option. Many items on their menu are sugary-fat-based. A “diet” menu could be a good option due to the growing trend toward a healthier lifestyle and the competition’s limited offerings. Many customers are looking for healthy options to enjoy the many benefits. It is possible to view all the benefits, including quality, price, convenience, as potential segmenting dimensions. Recent negative publicity caused by the fact that some franchisees of the coffee-and doughnut chain in Ontario withdrew employee benefits and took paid breaks to offset the increase in provincial minimum wages. The company parent claimed they did not offer any assistance. The chain was boycotted by some consumers after the move provoked protests nationwide. RBI and its franchisees must find a cause that they can rally behind – something other than a menu change. It should reflect the values of the people who created the brand.

Tim Hortons is committed providing a safe workplace for employees and customers. This policy applies for all personnel actions. Differentiate pay and promotions based on merit. It is important you know what the law permits and not only what it bans. However, differential treatment is not allowed based on any of the above prohibited factors. Employers who engages in improper discrimination and harassment can expose the Company to possible liability. Employees who engage in improper discrimination or harassment should be reported to the Company. They must also ensure that their products are being improved. All employees should be encouraged to report any issues that might affect the quality of a restaurant’s food. Every employee at Tim Hortons must be committed to the highest quality products. This is how Tim Hortons keeps its quality promise. The Company’s primary responsibility is food safety. Nothing, even cost, can interfere with that responsibility.

Tim Hortons has been challenged by rivals for the very first time in its storied history. The Canadian giant can still rise in the rankings. It is clear from this analysis that Tim Hortons should be more focused on Canada and less on international business. This will allow them to build a Canadian brand. All consumers will go if they don’t. Tim Hortons’ vision and mission is for them to be leaders in all that they do. All stakeholders, including consumers and partners, will benefit from superior quality products, services, and support. Tim Hortons is focusing on the day-part sector and leveraging its core strengths in order to achieve their corporate goals.

Author

  • landonwong

    Landon Wong is a 34-year-old educational bloger and teacher. He has been teaching in the US for 12 years and has worked as a tutor, librarian, and high school teacher. In his spare time, he enjoys writing and teaching.