Tim Hortons Case Study

Background: A Tim Horton’s is one of the famous coffee restaurant in Canada. It is one of the biggest publically traded company. Which is working under a quick service restaurant segment. They hold a 42% market share of coffee shops in Canada. It is started in 1964 by Miles G. Tim Horton. It is continuously growing till the start their business and they increase their revenues by many folds in past years.

Problem Statement: In this case study they are doing very well. But at some point of time they have loopholes in their working which makes their working difficult and less profitable for them. Like first problem that they have is sitting arrangement in their restaurants. They were unable to design their restaurants in such a way which give a high comfort level to their customers. So, they can enjoy their coffee and able to spend their valuable time with others. They mainly focus on younger generation which mainly prefer drive-thru or pick-ups only. But at same point of time they forget the big part of Canadian population which is mainly older ones above 65. So, they need a place where they can spend time with their special ones.

Second thing that is also a big problem in their way of expansion is they were lack of understanding that in which way they should expand their business outside of Canadian borders. They were doing all their things in the same way as Canada. But they need to change their strategies according to the country. So, they can compete with their rivals in the same segment.

Third big problem is that they got a big amount of competition from their rival like McDonalds also start MacAfee with much lower price. Which attract many their customers which are price sensitive in nature. A Starbucks is also big problem for them, because they also provide the same products in different variety. So, they need to make changes in their strategies according to their market movements.

Case Study Analysis:

A Tim Horton’s has captured a good position in the coffee market. As they provide the 100% pure Arabic coffee. Which is roasted by them according to their signature taste. But although they are also facing many different problems. Which can make their growth slow. But they are trying their best to overcome these shortcoming. So, they can grow in the international market and increase their customer reach. They also have special board to deal with all these matters.

As the Tim Horton’s provide a fast service product to their customers. Which are easy to make for their employees. They also have set time limits for their product formation. They take orders from their customers in different ways like counter desk, mobile order and drive-thru. Which make it more ease for them to make their coffee and other order before they came to pick-up. They always change their products according to the demand of the market and according to the season like in winter people demand more hot coffee as compare to cold one. In current time they also introduce many other drinks like: Cappuccino, latte, Dark roast,