Tim Hortons Case

1644 Words7 Pages
Background In Canada, Tim Horton’s thrives on its strong presence, whether it be with regards to high store saturation or with community involvement. Tim Horton’s has started to expand across the border and pond, by opening locations in the United States (US), as well locations in the Gulf Cooperation Council and Europe. However, Tim Horton's has not flourished outside Canada, with stores being closed in the US in 2014. On August 26, 2014, Tim Horton’s reached an agreement with G3 Capital to be another entity under the firm alongside Burger King. This provides additional funding and global experience, which will aid in Tim Horton’s pursuit of long term growth in the US market. Issues In the past, Tim Horton’s has struggled to occupy a distinct…show more content…
Moving forwards, Tim Hortons should implement a long-term strategy that works towards global expansion. The restaurant industry experienced less than expected growth post-recession, however, due to low customer cost, the quick service segment is largely recession proof. Tim Hortons faces many large competitors in the quick service sector. Starbucks offers customizable drinks and loyalty programs, but the high price targets a more affluent demographic. Conversely, McDonald’s boasts lower prices and has expanded successfully on an international scale. However, their reputation has suffered as a result of healthier food trends. Dunkin’ Donuts competes with Tim Hortons with regards to baked goods and has a very similar platform. However, Dunkin’ Donuts - similar to Tim Hortons - has low brand awareness outside of the US market and had an unsuccessful expansion into Canada. The increasing competition in the quick service sector is a threat because Tim Hortons may cede their market…show more content…
These locations range from being in airports to gas stations like Esso. The financial support from G3 Capital provides Tim Hortons an opportunity to open new international markets and achieve geographic expansion. Another opportunity for Tim Hortons is the vast demand for additional franchises by potential owners. Tim Hortons’ previous expansion into New England did not perform as well as expected, and lacked customer loyalty to flourish in a new environment. Threats facing the restaurant industry and Tim Hortons in particular include the constantly changing consumer tastes as well as the increasing costs for labour and
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