Third quarter’s financial statement of Tim Hortons was published and it was reported a significant rise in profit by 11%.

It may because of this impetus, Tim Hortons is seeking to expand globally. Chief executive Marc Caira announced that he plans to grow the restaurant’s operations outside the company’s home base and the US, starting first with the Middle East and then moving onto other countries.

Normally, it’s hard for new entrants to survival in competitive markets, especially markets, which are nearly, reach saturation point like café market. Fortunately, Tim Hortons has the advantages of high reputation and brand identification. However, the threat of substitutes is still strong, and customers face tradeoff when choose which café to consume. Rational buyers will bargain leverage. They will consider which coffee brand will bring them more benefits. Since the soar in Tim Hortons’ profit is mainly due to an increase in selling price and customers often inclined to buy cheaper good, Tim Hortons are supposed to come up with other tactics to attract consumers.

Recent news said Tim Hortons aim to reduce wait time, which exactly panders to customers’ wish. For example, in UBC students have to wait in line for 10 to 20 minutes, while the break between classes is extremely short. Myself have left several times with disappointment. If this problem can be fixed, the profit of Tim Hortons will be witnessed a new high. In addition, it will achieve a great success in world market.