Tim Hortons

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Executive Summary(1-2 pages) Tim Hortons, Inc. is positioned within the market as a mature company with a strong consumer franchise. Broadly, the entity enjoys a strong brand, very profitable franchise income, strong cash flow, high returns, strong same store sales, and a low-risk business model. Business Overview Tim Hortons, Inc. engages in the ownership and operation of quick service restaurants, Tim Hortons restaurants, in Canada and the United States. The company offers coffee, flavoured cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh baked goods. External Environment Broadly, the restaurant industry has benefited from a long term trend towards eating out, driven by a growth in disposable …show more content…

Lastly, since the company controls the real estate of most of its franchise restaurants, overseeing and directing all aspects of real estate is a critical core competency. Current Strategy Assessment Tim Hortons strives to: Offer value-priced quality products which is achieved through economies of scale; and facilitated by their strong vertical integration. The entity subscribes to the slogan, “Always Fresh”, which is seen as a byword and serves as a source of differentiation. Given an emerging health conscious consumer preference, the company is capitalizing on the health trend in order to maintain its competitiveness by adding healthy menu choices. Also, characteristic to Tims strategy is a notion of flexibility, which entails a, “We Fit Everywhere” ethos wherein the entity is actively looking to activate new stores that fit in a variety of non-traditional settings (e.g., universities, hospitals, supermarkets, highway rest stops, major airports and gas stations). Taken together, it is evident that the is exploring a way for the to further penetrate regions where space might not be otherwise available by way of putting the most restaurants it can where they will be most convenient to customers. In fact, the entity is benefiting from their aggressive new store growth as a source of advertising.

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