Having to train staff for a bewildering and ever-changing menu selection was costly and time consuming, and so no one was sad when Tim Hortons announced in January it was scrapping its bizarre foray into veggie burgers. Cil, the CEO at RBI, offered a few more clues about what the company has planned on the food front during his conference call with analysts. Tim Hortons is rolling out new coffee brewers to improve the taste of the coffee, and will add skim-milk and non-dairy creamers to its offering.
He also promised the chain is going to up the quality of its bacon and bread. The strategy of returning to the basics of coffee and donuts sounds simple, but it is at odds with the financial ethos of what Tim Hortons has evolved into over the past two decades—a low cost, rapidly expanding food chain with more than 4, restaurants across the country and growing.
Coffee and donuts are a low-margin business, and competition in the quick serve restaurant sector in Canada has become brutally fierce. Meanwhile Tim Hortons has failed to find a way to be relevant to the growing cohort of younger, more health conscious consumers without alienating its core boomer customer base in the process. None of these trends are going away. Business Tim Hortons, the Brazilian coffee chain that wants to be Canadian again Jason Kirby: Tim Hortons has lost its grip on Canadian coffee drinkers and it's not clear its back-to-basics turnaround plan will win them back.
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By continuing to use our service, you agree to our use of cookies. We use cookies why? You can change cookie preferences. Want to discuss? Please read our Commenting Policy first. Executives travelling the country to discuss its strategy for the new year have promised franchisees a directional shift that will see the chain reclaim its Canadian, coffee and doughnut roots, following years of sluggish sales, a frenzy of new products and multiple lawsuits between franchisees and their parent company.
Two Canadians, Ron Joyce and hockey pro Tim Horton, founded the chain in the s and it opened its 1,th restaurant in These changes sowed accusations from some that the company was no longer Canadian. Prime Minister Justin Trudeau recently fuelled this fire when he visited Oh Doughnuts, a Winnipeg bakery, to pick up treats for some meetings.
He shared the purchase on his Twitter account with the hashtag ShopLocal. While some social media users reproached the federal leader for choosing a pricey shop over a Tim Hortons, others praised Trudeau for avoiding an internationally owned chain to support a small business.
Three-quarters of the Tim Hortons leadership team is Canadian, as are its roughly 1, franchisees and some , employees. But several large U. For its most recent quarter, Tim Hortons saw the key retail metric of comparable-store sales in Canada slip 1. The company is set to release its fourth-quarter and full-year results next month. Tim Hortons plans to focus on elevating its staples: coffee, breakfast, baked goods and doughnuts, said Fulton.
In , Tim Hortons launched nearly 60 new products, compared to its more traditional figure of half that. The limited-time offers created operational complexity and moved the company farther from its core offerings. World Canada Local.
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