Strengths: 1.Tim Hortons is ranked 1st on the “Canadian Business Top 40 Brands” list, and was included as one of the 100 brands found to be “Most Loved” globally. 2.Tim Hortons opened over 250 locations in the past 5 years, installed more drive-thrus in Canadian locations, and improved the design of more than 300 restaurants in Canada and the U.
S. by giving them “a more modern design” 3.The company’s plans from 2013-2018 includes opening an estimate of 215 to 255 restaurants openings across Canada and the U.
S. They plan to open roughly 140 to 160 locations in Canada and roughly 40 to 60 full-serve restaurants in the U.S. 4.
Tim Hortons holds majority preference of the Canadian market for baked goods and has a tight grip on the Canadian coffee market Weaknesses: 1.Tim Hortons was forced to close many stores in the northeastern region of the US due to high competition with stronger rooted brands causing loss of revenue. 2.Tim Hortons has failed to become recognized worldwide as a very successful franchise, while they did great in canada they struggle to expand overseas 3. People want to know what’s the food they eat, and the parent company of Tim Hortons has decided to not release any nutritional information hurting business. Tim Horton’s was also exposed on the fact they don’t sell organic coffee, and won’t release the origin of the coffee beans 4.
They have failed to see changing trends of the market that they are in resulting in upcoming brands to steal valuable customers Opportunities: 1.Tim Hortons is constantly looking for new ways to be competitive some ideas can be. Ex: new coffee blends, paying with mobile device, express lines for improved service and making “K-cup” options for at home coffee making. 2. All-day breakfast has become a growing trend in fast food chains and with many 24-hour locations, Tim Hortons could benefit from a steady traffic of people seeking breakfast later in the day. 3. Tim Hortons is best known for its coffee and donuts, but majority of their lunch options are healthier than those of competing fast-food establishments. More marketing on healthy alternatives and improvement in the nutritional value of its soups and baked goods could vastly improve business 4.
Creating a delivery service could drive sales even higher than they are due the increase of technological advances. Threats: 1. McDonald’s is remodeling many of its Canadian outlets gaining more attention from Canadian consumers. Starbucks has been gaining large ground, using products that are only available in Canada (True North) (Maple Macchiato) to make customers feel more exclusive. 2. With Tim Hortons trying to stick to their branding of always being fresh this causes them to have higher costs of raw materials (spending millions more to ensure fresh) because they choose to purchase and sell higher quality food than average fast food franchises 3. Tim Hortons and millions of customers have reported that food costs are rising faster than standard inflation.
Tim Hortons has no way around this other than to rise prices as most of their products will spoil but other fast foods often resort to freezing. 4. Labour costs have risen causing them to pay much more for minimum wage work