- Tim Hortons
Infobox Company
company_name = Tim Hortons Inc.
company_
company_type = Public (TSX|THI, nyse|THI)
foundation = flagicon|CanadaHamilton, Ontario (1964)
location =Oakville, Ontario
key_people =Paul D. House , President, Don Schroeder, CEO and Director (as of March 1st 2008)Tim Horton andRon Joyce , co-founders
industry =Restaurant s [http://www.hoovers.com/tim-hortons/--ID__106334--/free-co-factsheet.xhtml Tim Hortons Fact Sheet] ]
products =Coffee Doughnuts Timbit sBagel sMuffins Soup sSandwich es
Iced cappuccinos
revenue = (2007)cite web |url=http://zenobank.com/index.php?symbol=CA;THI&page=quotesearch |title=Company Profile for Tim Hortons Inc (CA;THI) |accessdate=2008-10-03]
company_slogan = Always Fresh. Always Tim Hortons.
net_income = $270 million CAD (2007)
num_employees = 70,000 (2005)
homepage = [http://www.timhortons.com/ TimHortons.com]Tim Hortons Inc. is a
coffee -and-doughnut fast food restaurant chain. Founded inHamilton, Ontario , in 1964,cite web| title = Tim Hortons Official History| url=http://www.timhortons.com/en/about/index.html| accessdate = 2008-07-12] the store rapidly expanded across Canada to become the country's largest quick-service food chain."Wendy's confirms Tim Hortons IPO by March", Ottawa Business Journal, December 1, 2005, [http://www.ottawabusinessjournal.com/284838323369567.php] ]Tim Hortons franchise stores are plentiful in Canadian cities and towns. As of July 1, 2007, there were 2,733 outlets in Canada, 345 outlets in the United States and one outlet just outside
Kandahar ,Afghanistan . [ [http://finance.sympatico.msn.ca/investing/insight/article.aspx?cp-documentid=5426649 Wal-Mart Canada supercenters to have Tim Hortons - Investing Insight - Sympatico / MSN Finance ] ] Cite web
url=http://www.timhortons.com/en/news/news_archive_2006h.html
title=Tim Hortons brings a taste of home to troops in Kandahar
publisher=Tim Hortons
date=2006
accessdate=2007-11-21] Cite web
url=http://www.canada.com/theprovince/news/story.html?id=8f567fe7-fb94-4b91-a261-69b4236c6566
title=Tim Hortons hiring for Afghanistan
last=O'Connor
first=Elaine
publisher=The Province
date=2006-04-12
accessdate=2007-11-21] Recent experiments with international expansion have seen Tim Hortons chains open elsewhere in the world, including a small outlet at theDublin Zoo . Tim Hortons also have an agreement with theSPAR convenience store chain in the UK and Ireland, which has resulted in Tim Hortons coffee and doughnuts being sold at small self service counters in 16SPAR stores. Tim Hortons has supplantedMcDonald's as Canada's largest food service operator; it has nearly twice as many Canadian outlets as McDonald's, and its system-wide sales surpassed those of McDonald's Canadian operations in 2002. ["Marketer of the Year: Down-Home Smarts", Marketing Magazine, February 7, 2005, [http://www.marketingmag.ca/magazine/current/marketer_year/article.jsp?content=20050207_66405_66405] ] The chain accounted for 22.6% of all fast food industry revenues in Canada in 2005. Tim Hortons commands 76% of the Canadian market for baked goods (based on the number of customers served) and holds 62% of the Canadian coffee market (compared toStarbucks , in the number two position, at 7%)."Tim Hortons Raises C$783 Million in Initial Offering", Bloomberg News, March 23, 2006 [http://quote.bloomberg.com/apps/news?pid=10000103&sid=aVbau_WUTixk&refer=news_index] ]History
Tim Horton and Ron Joyce
The chain's first store opened in 1964 in Hamilton,
Ontario under the name "Tim Horton Donuts" (the name later being abbreviated to "Tim Horton's", and later still changed to "Tim Hortons" without the possessive apostrophe). The business was founded byTim Horton , who played in theNational Hockey League from 1949 until his death in a car accident in 1974.Soon after Horton opened the store, he met
Ron Joyce , a former Hamilton police constable. In 1965, Joyce took over the fledgling Tim Horton Donut Shop on Ottawa Street North in Hamilton. By 1967, after he had opened up two more stores, he and Tim Horton became full partners in the business. Upon Horton's death in 1974, Joyce bought out the Horton family and took over as sole owner of the existing chain of forty stores. Joyce expanded the chain quickly and aggressively in geography and in product selection, opening the 500th store in Aylmer,Quebec , in 1991.Ron Joyce's aggressive expansion of the Tim Horton's business resulted in two major changes in the coffee and doughnut restaurant market: independent doughnut shops in Canada were virtually eliminated, and Canada's per-capita ratio of doughnut shops surpassed those of all other countries."The unofficial national sugary snack", Canadian Broadcasting Corporation, September 1, 1994 [http://archives.cbc.ca/IDC-1-69-1371-8375/life_society/canadian_food/clip8] ]
The chain later went public under the corporate name "Tim Donut Limited". By the 1990s, the company name had changed to The TDL Group Ltd. This was an effort by the company to diversify the business, removing the primary emphasis on doughnuts.
Some older locations retain signage with the company's name including a possessive apostrophe, despite the fact that the official styling of the company's name has been "Tim Hortons", without an apostrophe, for at least a decade. [Dickinson, Casey. "Canadian Doughnut Shop Targets Upstate". CNY Business Journal. November 24, 2000.]
Relationship with Wendy's
In 1992, the owner of all Tim Hortons and Wendy's Restaurants in
Prince Edward Island , Daniel P. Murphy, decided to open new franchise outlets for both brands in the same building in the town of Montague. Murphy invited Joyce and Wendy's chairman Dave Thomas to the grand opening of the "combo store", where the two executives met for the first time and immediately established a rapport.Murphy's success with combining coffee and doughnuts with Wendy's fast food led to the August 8, 1995, agreement resulting in Wendy's International, Inc.
merger with TDL Group. Joyce became the largestshareholder in Wendy's, even surpassing Thomas. [ [http://archives.cbc.ca/IDC-1-73-2330-13539-10/on_this_day/politics_economy/twt CBC Archives] - "US burger giant buys Tim Hortons doughnut chain", August 8, 1995] TDL Group continued to operate as a separatesubsidiary from its head office inOakville, Ontario , although Joyce eventually retired from active management to pursue other interests.Under pressure from rival restaurateur Nelson Pelz, in late 2005, Wendy's announced it would sell between 15% and 18% of the Tim Hortons operations in an
initial public offering , which was completed on March 24, 2006, and subsequently said it would spin off to shareholders its remaining interest by the end of 2006."Wendy's to spin off all of Tim Hortons by end of 2006", Canadian Broadcasting Corporation, March 3, 2006 [http://www.cbc.ca/story/business/national/2006/03/03/wendys-060303.html] ] Wendy's cited increased competition between the two chains and Tim Hortons' increasing self-sufficiency as reasons for its decision, but the company had been under shareholder pressure to make such a move because of the strength and profitability of the Tim Hortons brand."Wendy's International, Inc. Announces Comprehensive Strategic Initiatives to Enhance Shareholder Value", CNW Telbec, July 29, 2005 [http://www.cnw.ca/en/releases/archive/July2005/29/c5693.html] ] It should be noted, however, that Pelz in 2008 acquired Wendy's after pressuring them initially to spin off Tim Hortons.Shares of the company began trading on March 24, 2006, with an
initial public offering of C$27 per share, raising over $700 million in the first day of trading. On September 28, 2006, Wendy's spun off the rest of its shares in Tim Hortons, by distributing the remaining 82% to its shareholders. [Hortons spinoff goes ahead, Toronto Star, September 28, 2006, [http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1159523528289&call_pageid=968350072197&col=969048863851] ] On the same day, Tim Hortons was added to Canada's benchmark stock-market indicator, theS&P/TSX Composite Index , and to theS&P/TSX 60 . [Tim Hortons joins S&P/TSX index roster, Toronto Star, September 27, 2006, [http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1159353728514&call_pageid=968350072197&col=969048863851] ]On February 2, 2007, Wendy's reported a 90% drop in earnings at the end of the fourth quarter following the completed spin-off of Tim Hortons, subsequently causing the company stock to drop a total of 4%.
Expansion
TDL Group recorded $1.48 billion in sales in 2005"Tim Hortons stock jumps in trading debut", CTV News, March 24, 2006 [http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060324/tim_hortons_onsale_060324/20060324?hub=TopStories] ] and has expanded across Canada into small and large markets, as well as into
New York ,Ohio ,Michigan ,West Virginia ,Kentucky , andMaine .Initially, the US stores were the result of natural expansion into Canadian border areas (i.e. stores in
Maine and theBuffalo, New York area). Starting in the mid-1990s, however, the chain began expanding in the US by acquiring former locations from fast food chains. Between 1996 and 1997, thirty-seven formerRax Restaurants locations inOhio ,Kentucky , andWest Virginia were bought and converted to Tim Hortons, as were thirty-five formerHardee's stores in theDetroit, Michigan area. [cite web |url=http://findarticles.com/p/articles/mi_m3190/is_n43_v30/ai_18851071 |title=Wendy's buys 37 Rax units, plans Tim Horton's makeover |accessdate=2007-12-10 |date=1996-11-04 |work=Nation's Restaurant News] By 2004, the chain had also acquired 42Bess Eaton coffee and doughnut restaurants situated inRhode Island ,Connecticut , andMassachusetts . Several combination Wendy's/Tim Hortons units have also been opened throughout the United States, both in the "traditional" markets of Buffalo and Maine, and in the markets entered through acquisition.Tim Hortons was originally concentrated in Ontario and Atlantic Canada. In recent years, however, the chain has greatly expanded its presence in Quebec and western Canada. [Tim Hortons official site FAQ [http://www.timhortons.com/en/about/faq.html#four] ]
Tim Hortons' products have become available in Ireland at some
SPAR convenience stores [SPAR launches new Food Strategy as part of €90m expansion plan for 2006, January 2006, [http://www.spar.ie/dynamic/files/Final-FoodStrategyrelease.doc] (last accessed November 7, 2006)] andTesco supermarkets. [Tesco Ireland, January 24, 2006, [http://www.tesco.ie/about/20060124_conference.html] (last accessed November 7, 2006)] The first expansion into Indiana was announced with the planned opening of a location in Richmond, Indiana's southwest side. [ [http://www.pal-item.com/apps/pbcs.dll/article?AID=/20071127/NEWS01/711270303/1008/rss] ] This location is expected to open sometime in 2008.Tim Hortons and the Canadian military
Tim Hortons has many outlets located on or near many
Canadian Forces Base s. TDL Group announced in March 2006, in response to a request by Chief of the Defence Staff, GeneralRick Hillier , its commitment to open a franchised location at the Canadian Forces operations base inKandahar ,Afghanistan . The new Kandahar location opened on June 29, 2006 in a 40 foot trailer on the military base."Tim Hortons comes to Kandahar", CBC.ca, June 29, 2006 [http://www.cbc.ca/cp/national/060629/n062932.html] ] The 41 staff members of the Kandahar outlet have been drawn from theCanadian Forces Personnel Support Agency who received training on such matters as how to handle a potential nuclear or biological attack before working at the military base."Tim Hortons Survival Training", Yahoo News, May 5, 2006 [http://ca.news.yahoo.com/cbc/s/05052006/3/ottawa-hopefuls-tim-hortons-kandahar-outlet-survival-training.html] ] The Canadian Federal government subsidizes the operation of the Kandahar outlet in the order of CAD$4-5 million per year."Ottawa foots bill for Afghan Tim Hortons: Canadian taxpayer foots nearly $4-million bill", Canada.com, 2006 [http://www.canada.com/globaltv/national/story.html?id=886b7564-148b-4414-b9b2-74d625bef02alink] ]Growth of the Tim Hortons Chain
*Store #1 -
Hamilton, Ontario - May 1964
*Store #100 -Thunder Bay, Ontario - December 1978
*Store #200 -Hamilton, Ontario - December 1984
*Store #300 -Calgary ,Alberta - February 1987
*Store #400 - Halifax,Nova Scotia - February 1989
*Store #500 -Aylmer, Quebec - January 1991
*Store #700 -Moncton ,New Brunswick - October 1993
*Store #1000 -Ancaster, Ontario - August 1995
*Store #1500 -Pickerington, Ohio - March 1997 (this was also Wendy's 5000th store)
*100th US store –Columbus, Ohio - July 31 1998
*Store #2000 -Toronto ,Ontario - December 2000
*Store #2500 -Cayuga, Ontario - September 2003
*Store #3000 - Orchard Park, New York - December 14, 2006, [ [http://www.timhortons.com/en/about/history_2006.html Tim Hortons History, 2006] ](Source: Tim Hortons Official History [ [http://www.timhortons.com/en/pdfs/en_media_kit.pdf Tim Hortons official History] - Growth of Tim Hortons] )
Menu
Tim Hortons' first stores only offered two products - coffee and doughnuts. Aside from its coffee,
tea ,hot chocolate , and doughnuts, the Tim Hortons menu now contains a number of other baked goods, such asTimbits (miniature balls of doughnut dough),muffin s,croissant s,tea biscuit s,cookie s, rolls, danishes, and more recentlybagel s - of which Tim Hortons sells one out of every two in the Canadian foodservice industry. [ [http://www.timhortons.com/en/news/news_archive_2001f.html Tim Hortons - Tim Hortons, and IAWS form joint venture to build bakery facility in Ontario ] ] Take-homecake s are offered in some locations.Since the mid-1990s, the chain has moved into other areas, including specialty and premium items such as flavoured
cappuccino ,iced cappuccino,Iced cofee, New York-style cheesecake, and a lunch selection that includes soups, chili, and submarine-style sandwiches. In fall 2006, Tim Hortons began rolling out a breakfast sandwich. Consisting of an egg patty, processed cheese slice, and either bacon or sausage as the topper, it has sold well. [ [http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1159307412775&call_pageid=968350072197&col=969048863851 Tim's heats up menu wars] , Dana Flavelle, "Toronto Star ", September 27, 2006, article accessed September 29, 2006] In October 2007 Tim Hortons launched the Chicken Fajita Wrap, which contains spiced chicken and sautéed vegetables. As of late December 2007, they introduced the new Hash Browns and the Bagel B.E.L.T., a breakfast sandwich that also included lettuce and tomato.Coupled with the aggressive expansion and expanded menu came the outsourcing of baked goods. Doughnuts, which used to be made at night in order to be ready for the morning rush, are now fully cooked and then frozen and delivered to every restaurant all over Canada from Windsor Ontario. The restaurants are now able to bake and finish the product throughout the day. As of April 2007, many of the various muffin batters are being revoked, as frozen, premade and prewrapped muffins are being introduced to all bakers at Tim Horton locations. [ [http://www.wendys-invest.com/timhortons.php Maidstone Bakeries joint venture] ]
Originally
Coca-Cola products, Tim Hortons switched over toPepsi in2007 .Brand image
Advertising and promotion
Tim Hortons has one of the most successful marketing operations in Canada. With powerful and effective
brand ing, the store has established itself in the top class of fast-food restaurants in Canada.Canadian Business magazine has twice named Tim Hortons as the best-managed brand in Canada (in 2004 and 2005)."Tim Hortons Raises C$783 Million in Initial Offering", Bloomberg News, March 23, 2006 [http://quote.bloomberg.com/apps/news?pid=10000103&sid=aVbau_WUTixk&refer=news_index] ; "Investing in an icon: Why everyone wants a piece of Tim Hortons", Ottawa Citizen, March 19, 2006 [http://www.canada.com/ottawacitizen/news/story.html?id=f695c530-37cd-4b7f-988c-d7c1ab7f964a&k=89369] ; "Timbit Nation", Toronto Star, March 26, 2006 [http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1143327032563&call_pageid=968332188492] ; "Troops in Kandahar to get a Tim Hortons shop", March 7, 2006 [http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060306/afghan_timhortons_06030y?s_name=&no_ads=] ]Tim Hortons commercials appear frequently on Canadian
television andradio stations, and on billboards. All six of the CanadianNHL rinks have Tim Hortons ads along their boards as well as theColumbus Blue Jackets andBuffalo Sabres , two of the areas in the US (along with Michigan) where the chain is most prevalent.Fact|date=June 2008 Since 2005, Tim Hortons has also been the title sponsor of the Brier, the annual Canadian men's curling championships, along with the Canadian Ringette Championships.Fact|date=June 2008 Generally the chain promotes one or two "featured" products every month,Fact|date=June 2008 such asiced cappuccino s and various sweetened baked goods during the summer, lunch products such assoup orsandwich es during the winter, and its flagship coffee promotion "Roll Up The Rim to Win" during the early spring. Shortly before December 2007, they discontinued their gift certificates, and replaced them with the QuickPay Timcard, with the Christmas slogan "Because it's hard to wrap a double double" (coffee with two sugars and two cream).Tim Hortons'
advertising slogans have included "You've Always Got Time for Tim Hortons" and, more recently, "Always Fresh. Always Tim Hortons.""Roll Up the Rim to Win"
From late February until early May each year, Tim Hortons holds a very large marketing campaign called Roll Up The Rim to Win. Over thirty million prizes are distributed each year,Cite web|url=http://biz.yahoo.com/prnews/070226/nym160.html?.v=74|title=It's Rrroll Up The Rim To Win(R) Time at Tim Hortons!|accessdate=2007-03-10|publisher=Tim Hortons Press Release|year=2007|author=Press Release] ranging in value from vehicles to televisions, to store products. Customers determine if they have won prizes by unrolling the rim on their paper cup when they have finished their drink, revealing their luck underneath.
The ubiquitous Tim Hortons ads on the boards of hockey rinks change from the normal "Tim Hortons" signage to a "Rrroll up the Rim" display; the timing of the promotion also is key because it is during the height of the
NHL season, ensuring that viewers across North America will see the ads.Fact|date=June 2008 Television and other media are inundated with advertisements that repeat the "R-r-roll up the R-r-im to Win" slogan and encourage the recitation of the phrase using rolled R's to match the announcer's delivery.Fact|date=June 2008The contest is so popular that someone has invented the Rimroller, a little device for rolling up the rim mechanically."Finally! A Rimroller!!", Winnipeg Free Press, March 11, 2007 [http://www.winnipegfreepress.com/subscriber/columnists/d_speirs/story/3906909p-4518566c.html] ]
Prizes are not distributed randomly country-wide; each of the company's distribution regions has its own odds for prize-winning."Not all rims rrroll up equally", Canadian Broadcasting Corporation, March 15, 2006 [http://www.cbc.ca/story/canada/national/2006/03/15/timhortons-060315.html] ]
In March 2006, two families were fighting over the
Toyota RAV4 SUV prize of C$32,000 value after their daughters found a winning "roll up the rim" coffee cup in a garbage bin of an elementary school in Saint-Jérôme, north ofMontreal . The younger girl had found a cup in the garbage bin and could not roll up the rim, so requested the help of an older girl. Once the winning cup was revealed, the older girl's family stated that they deserved the prize. Tim Hortons originally stated that they would not intervene in the dispute. A further complication arose when Quebec lawyerClaude Archambault requested a DNA test be done on the cup. He claimed that his unnamed client had thrown out the cup and was the rightful recipient of the prize. On April 19, 2006, Tim Hortons announced that they had decided to award the prize to the parents of the girl who had initially discovered the cup."Finders, keepers: Tim Hortons puts a lid on cup contest controversy", Canadian Broadcasting Corporation, April 19, 2006 [http://www.cbc.ca/story/canada/national/2006/04/19/hortons-cup-060419.html] ]Community
The store also promotes itself through community support and the "Tim Horton Children's Foundation." Founded by Ron Joyce, the Foundation sponsors many thousands of underprivileged children from Canada and the United States to go to one of six high-class
summer camp s located in Parry Sound, ON; Tatamagouche, NS; Kananaskis, AB; Quyon, QC; Campbellsville, KY; and St. George, ON.Fact|date=June 2008The foundation's highest-profile fundraiser is Camp Day, which is held annually on the Wednesday of the first full week in June. All proceeds from coffee sales at most Tim Hortons locations, as well as proceeds from related activities held that day, are donated to the foundation. Small stores located in Esso Service Stations do not donate coffee proceeds on Camp Day.Fact|date=June 2008
, with the official presentation taking place on October 21, 1992, in Ottawa.Fact|date=June 2008
Tim Hortons also sponsors the Timbits Minor Sports Program, a community program for local sports teams involving children aged four to eight years.Fact|date=June 2008 The program places an emphasis on learning the sport and building friendships among the participants, as reflected in the program's advertising tagline--"The First Goal is Having Fun."
A Canadian cultural fixture
The ubiquity of Tim Hortons, through both effective marketing and the wide expansion of its outlets, makes it a prominent feature of Canadian life. Tim Hortons' prevalence in the coffee and doughnut market has led to its branding as a Canadian cultural icon, and the media routinely refer to its iconic status.See, for example: "Tracing the roots of an icon," Montreal Gazette, March 21, 2006 [http://www.canada.com/montrealgazette/news/business/story.html?id=42d96107-6b0b-4293-b4f0-020187d1c734] ; "Investing in an icon: Why everyone wants a piece of Tim Hortons", Ottawa Citizen, March 19, 2006 [http://www.canada.com/ottawacitizen/news/story.html?id=f695c530-37cd-4b7f-988c-d7c1ab7f964a&k=89369] ; "Timbit Nation", Toronto Star, March 26, 2006 [http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1143327032563&call_pageid=970599119419|] ; "Tims holds gains", Globe and Mail, March 24, 2006 [http://www.theglobeandmail.com/servlet/story/RTGAM.20060324.wtims0324/BNStory/Business] ; "Bay Street Week Ahead-Tim Hortons serves up hot IPO to go", Reuters News, March 26, 2006 [http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060326:MTFH34388_2006-03-26_15-31-02_N24386856&symbol=WEN.N&rpc=44] ; "But can iconic coffee chain sustain growth, analysts wonder", Winnipeg Free Press, March 20, 2006 http://www.winnipegfreepress.com/subscriber/business/story/3391448p-3922704c.html] ] A series of Tim's television commercials promotes this idea by showing
vignette s of Canadians abroad and theirhomesickness for Tim Hortons.Noted Canadian authorPierre Berton once wrote: "In so many ways the story of Tim Hortons is the essential Canadian story. It is a story of success and tragedy, of big dreams and small towns, of old-fashioned values and tough-fisted business, of hard work and of hockey.""Investing in an icon: Why everyone wants a piece of Tim Hortons", Ottawa Citizen, March 19, 2006 [http://www.canada.com/ottawacitizen/news/story.html?id=f695c530-37cd-4b7f-988c-d7c1ab7f964a&k=89369] ]Film director
Kevin Smith name-drops Tim Hortons several times during a portion of his DVD "" which was taped at a college "Q&A" appearance in Toronto, Ontario. At one point, a fan comes up onto the stage while Smith is speaking, and brings him a few bags ofTimbits .Some commentators have bemoaned the rise of Tim Hortons as a national symbol. Rudyard Griffiths, director of
The Dominion Institute , wrote in theToronto Star in July 2006 that the ascension of the chain to the status of cultural icon was a "worrying sign" for Canadian nationalism, adding: "Surely Canada can come up with a bettermoniker than the Timbit Nation.""Timbit Nation? Say it ain't so, eh", Toronto Star, July 23, 2006 [http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&call_pageid=971358637177&c=Article&cid=1153605014260] ]
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