Growth Of Tim Hortons Marketing Essay

Tim Hortons, a famous fast food restaurant based in Canada and known for their donuts and coffees. They became the biggest fast food service in Canada. Tim Hortons is the fourth largest publicly-traded restaurant chain in North America based on market capitalization. Tim Hortons overtook several big companies like Taco Bell, Krispy Kreme and McDonalds. “As of July 1st, 2012, Tim Hortons had 4,071 system-wide restaurants, including 3,326 in Canada, 734 in the United States and 11 in the Gulf Cooperation Council.” (David Morelli n.d.). Tim Hortons was originally concentrated in Ontario as well as in Atlantic Canada. In recent years, however, the chain has greatly expanded its presence in Quebec and western Canada. Canadian people patronize Tim Hortons because of their location (because they are almost everywhere) and their convenience because they have drive-thrus. The quality of service they receive in Tim Hortons is outstanding, that it makes them come to Tim Hortons almost every day. Tim Hortons appeals to a broad range of consumer tastes, with a menu that includes premium coffee, flavoured cappuccinos, specialty teas, home-style soups, fresh sandwiches, wraps, hot breakfast sandwiches and fresh baked goods.

Founder and Growth

Tim Hortons started his business in Hamilton, Ontario in 1964. He named it “Tim Horton Donuts” then the name was later abbreviated to “Tim Horton”. After Horton opened his 1st store, he met Ron Joyce who became his business partner. When Horton died because of a drunk driving accident, Joyce bought the Horton family’s shares and took over as the sole owner of Tim Hortons. Joyce scrambled and went deeply into debt to complete the deal and gain full control. Joyce became one of the Canada’s richest men. Lori Horton (Tim Horton’s wife) died in December 2000 with almost nothing. Joyce bought the share of Horton’s family for $1 million. In 1995, Joyce sold the Tim Hortons chain to Wendy’s International. Even if Joyce got vaulted into the realm of the super-rich. He said before that selling Tim Hortons is the biggest regret of his career. Joyce was given a seat on Wendy’s board of directors, the title of senior chairman. “In October 2001, while on a fishing trip with former U.S. president George Bush Sr., Joyce signed the papers to sell his stock back to Wendy’s and to cut the last of his ties to the empire he built.” (Maich n.d.) Joyce decided to sell his stock back to Wendy’s because of some conflict between him and the founder of Wendy’s Dave Thomas.

Tim Hortons Today

“Paul D. House accepted the position of Executive Chairman in March 2008, allowing him to focus on corporate strategy, franchisee relations and Board leadership. Mr House also sits on the Board of Directors for the Tim Horton Children’s Foundation.” (T.H.D. Donut (Delaware) n.d.). Paul D. House is the current chairman of Tim Hortons and successfully expanded Tim Hortons worldwide. Tim Hortons has emerged as an industry leader by expanding its menu choices, transforming restaurant designs and introducing Always Fresh baking. “NEW YORK — The iconic Canadian purveyor of “double double” coffees ranks among the top five in Zagat’s latest survey of fast food chains in the United States. Tim Hortons was voted fifth-best overall in the “quick refreshment” category. Tim Hortons ranked behind Culver’s, Peet’s Coffee/Tea, Rita’s Italian Ice and Caribou Coffee. Tim Hortons has some 3,300 outlets in Canada and 734 in the United States. It had revenues of $2.9 billion last year.” (The Canadian Press n.d.).Tim Hortons is now around the world; in Canada, US, Middle East. And they are planning to put more branches in the Middle East.

10-Year Average Same-Store Sales Growth is 6.1%

10-Year Average Same-Store Sales Growth is 6.0%

Timeline of Tim Hortons

Year

Event

1964

First Tim Hortons restaurant opens in Hamilton, Ontario, Canada

1967

Ron Joyce and Tim Horton become full partners

1974

In February, Tim Horton dies in tragic car crash

1975

1st Tim Horton Children’s Foundation camp opens in Parry Sound, Ontario, Canada

1985

1st U.S. restaurant opens in Amherst, New York

1991

500th Canadian restaurant opens in Aylmer, Quebec

1995

Tim Hortons is purchased by Wendy’s International Inc.

1995

1000th Canadian restaurant opens in Ancaster, Ontario

1997

1500th restaurant in the chain opens in Pickerington, Ohio

1998

100th U.S. restaurant opens in Columbus, Ohio

2000

2000th restaurant in the chain opens in Toronto, Ontario

2001

1st U.S. Tim Horton Children’s Foundation camp, Camp Kentahten, opens in Campbellsville, Kentucky

2004

Tim Hortons celebrate its 40th anniversary

2006 (March)

Tim Hortons completes an initial public offering and is fully spun off as a separate company as of September 29, 2006. Tim Hortons trades on the NYSE and TSX under the symbol THI.

2006 (December)

3000th restaurant in the chain opens in Orchard Park, New York

2008

500th U.S. restaurant opens in Detroit, MI

2009

Tim Hortons and Kahala Corp – parent company of Cold Stone Creamery – announced the co-branding of up to 100 combined restaurants in the U.S.

2009

Tim Hortons Inc. announced on September 28, that it has completed the reorganization of its corporate structure to become a Canadian public company.

2011

Tim Hortons signs a Master License Agreement (MLA) with Apparel Group based in Dubai for up to 120 multi-format restaurants in markets in the Gulf Cooperation Council.

2011

In December, Tim Hortons opened its 4,000th restaurant.

(http://www.timhortons.com/ca/en/about/media-company-facts.html)

Tim Hortons’ biggest drawing card is the legendary Tim Hortons coffee. To ensure the coffee is always fresh, Tim Hortons serves its coffee within 20 minutes of being brewed or it’s not served at all. The premium blend is also available in cans, as are Tim Hortons hot chocolate and flavoured cappuccinos, allowing guests to enjoy these great tasting products at home.

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What’s New?

The first store of Tim Hortons only serves coffee and donuts. But now, aside from coffee and donuts, they now serve tea, muffins, cookies, biscuits and many more. In fall of 2006, Tim Hortons started to sell breakfast sandwich which is just an egg patty with cheddar cheese topped with your choice meat. “The menu at Tim Hortons continuously evolves to meet the changing needs and tastes of our guests. Our diverse offering includes a variety of balanced options, made-to-order, including home style soups and sandwiches, Yogurt & Berries, low-fat muffins, bagels with light cream cheese, oatmeal and real fruit smoothies.” (TDL Group n.d.). Most standard Tim Hortons locations are open 24 hours. Guests can eat in our dining rooms, take out, or use our convenient drive-thrus, which cater to consumers on the go. In June 2009, Tim Hortons USA created a Twitter and Facebook page to drive online traffic. Tim Hortons’ advertising slogans have included “You’ve Always Got Time for Tim Hortons” and starting in the mid-2000s, “Always Fresh. Always Tim Hortons.” While both of these slogans are still used, Tim Hortons began using an alternative slogan, “It’s Time for Tims” in November 2011.

Chronology of Product Additions to the Tim Horton Market Offering

Year

Product Offering Addition

1964

Started with coffee and donuts

1976

Timbits

1981

Muffins, cakes

1982

Pies

1983

Croissants

1984

Cookies

1985

Soups and chilli

1993

Sandwiches

1996

Bagels

1997

Flavoured cappuccino

1998

Re-introduction of new, improved sandwiches – 6 varieties (called “Tim’s Own”)

1999

Café mocha, iced cappuccino

2003

Turkey bacon club sandwich, maple pecan Danish

2005

Yogurt & berries, cinnamon roll, hot smoothies

2006

Chicken salad wrap, hot breakfast sandwich

2008

Roast beef sandwich (hot) *limited time offer

(http://calabash.ca/mct2009/evolutiontims-v02-p.pdf)

Mission/Vision

“From the beginning, the market philosophy if Tim Hortons has been to focus on high quality fresh products, quality service, value and community involvement (summer camps, participation in hockey leagues for kids)” (T.H.D. Donut (Delaware) n.d.). Tim Hortons adopted the “Always Fresh” slogan around 2001-2002. Consistent with this operating philosophy is the policy if the company not to sell any coffee that has been sitting for more than 20 minutes, since the quality of brewed coffee tends to deteriorate quickly if served from open glass pots, the brewing approach used at Tim Hortons. Since the “Always Fresh” philosophy was instituted at a time when all donuts and Timbits were baked on-site at each outlet. “Our guiding mission is to deliver superior quality products and services for our guests and communities through leadership, innovation and partnerships. ” (T.H.D. Donut (Delaware) n.d.) The mission statement of Tim Hortons is to deliver the best products and services for their guests.

Wrapping Up

In conclusion, it is clear that, over time, Tim Hortons has evolved from being a simple coffee and donut shop (Tim Horton’s Do-nuts) to becoming Canada’s largest quick-service restaurant chain, facing many challenges along the way. The transition of the company from a Canadian legal entity to a U.S registered company. Tim Hortons extend their service advantage in Canada through their “Hospitality Strategy”. Tim Hortons commitment to maintaining a close relationship with franchisees and the communities where it operates has helped generate immense guest loyalty and build Tim Hortons into one of the most widely recognized consumer brands in Canada.