Tim Horton’s Takes on America

Counter Culture should get renamed Coffee Culture lately. Recently, we had a popular discussion on guns in Starbucks and the viability of Juan Valdez franchising cafes in the US. Today the topic is Canadian chain Tim Horton’s.

Over the next three years, the company will open 300 outlets in the US. The unit growth will increase its presence here from the 563 locations it currently operates, and management wants to revamp the brand by going more bake-shop upscale, than say, the typical Winnipeg location.

But again, with Starbucks seemingly on every corner and Dunkin Donuts gaining ground, is there room for another major player in this arena? Tim Horton’s might have maxed out in Canada with over 3,000 units, but that doesn’t mean the concept will stick here.

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5 Responses to “Tim Horton’s Takes on America”

  1. 1 Paul Fetscher CCIM, SCLS March 8, 2010 at 9:35 am

    Tim Horton’s has some distinct advantages.

    Dunkin Donuts does the Majority of its business before 11:30 AM. Conversely Tim Horton’s has a 24% market share of AM coffee in canada, but the majority of their business is spread over the remaining dayperts.

    when was the last time you asked a co-worker where they wanted to go for Lunch and had them respond, “:dunkin Donuts”.

    Both of these chains enjoy high frequency of customer visit. But we wouldn’t think of going to Dunkin for Wraps, Salads or Sandwiches.

    Tim Horton’s has the opportunity to position themselves in the mind of the consumer as good fool – All Day!

  2. 2 Broker March 8, 2010 at 10:20 am

    If I were them i would look to the western US. The NE USA is overdeveloped already with DD and Starbucks.

  3. 3 Tahitijack March 8, 2010 at 6:04 pm

    Tim Horton concept will not work on the West Coast, and I doubt it will work at all. We are heading away from their minue..

  4. 4 ArizonaArchitectFromBuffalo March 10, 2010 at 11:05 am

    I grew up with Timmy Ho’s in Buffalo, NY. Sorry folks but Starbucks and DD just do not offer the same product that Tim Horton’s does. I think they would capture a good chunk of the South West market. Come on Timmy Ho’s, bring me a franchise to Phoenix!!

  5. 5 Berny March 10, 2010 at 11:55 am

    As a Canadian living in the SW..Tim Horton concept is for “everyman” and will work. Low priced high quality food. I doubt if donuts account for more than 30% of their sales. Bagels, soups, sandwiches, always fresh and service with a smile. I think they would compete hand over fist with Dunkin and even Einsteins.
    Come on down Timmy

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