Under their new CEO Marc Caira, Tim Hortons is looking at a range of growth options from the inclusion of dinner menu items to taking Tim Horton’s products outside of the restaurant. However, what caught my eye was the suggestion to expand Tim Horton’s products into vending machines. By making its products available through vending machines Tim Horton’s opens up an entirely new distribution channel with which to reach their customers. A large portion of their customer base consists of business professionals and the convenience of Tim Horton’s right in their office would appeal to them. Overall this strategy would help boost Tim Horton’s sales.

However, although I believe that Tim Horton’s should consider new creative strategies to differentiate themselves from their competitors, I’m not sure vending machines are the way to go. The risk with this strategy is that Tim Horton’s would need to spend a lot of money to repackage and preserve its products so that they are prepared for the longer shelf life required of vending machine products. In the end, there is no guarantee that these costs could be paid off by the revenues earned from the sale of its vending machine products.

Article from: “Dinner at Tim Horton’s? CEO dishes on menu plans, vending machines and the ‘must-win’ battle for the U.S.,” Financial Post, accessed September 17, 2013, http://business.financialpost.com/2013/09/17/tim-hortons-ceo-dinner-plans/

Image from: “Should Tim Horton’s exit the US?” Financial Post, accessed September 18, 2013, http://business.financialpost.com/2013/04/24/should-tim-hortons-exit-the-u-s/