The leading retailers in Canada’s lucrative coffee industry appear set for a major competition war. As classmate Angus Todd blogged about previously, McDonald’s has launched a marketing campaign to compete in the specialty coffee market with Starbucks. It appears as though Tim Horton’s has also started a similar marketing campaign, as they have even gone to the extent of bringing in the “Starbucks feel” to Tim Horton’s locations.
The fact that Tim Horton’s is bringing in leather chairs and WiFi clearly demonstrates that Tim Horton’s is attempting to change the way that customers view the Tim Horton’s experience. Personally, I never liked going to Tim Horton’s and sitting in the uncomfortable metal chairs.
Ahh, comfortable chairs
The move to targeting the espresso drinking consumers could affect business at Starbucks. Starbucks will argue that they present better quality than McDonald’s or Tim Horton’s. If McDonald’s and/or Tim Horton’s significantly threaten Starbuck’s market, it will be interesting to see if our good friends at Starbucks respond with reduced prices. Who would really wants to spend almost $5 per cup of coffee if there was a lower priced similar experience around the corner?