Though Tim Hortons holds the title for the “best in class” fast-food high-margin coffee provider, the company still feels the pressure from rivals, such as McDonald’s, who has began expanding their coffee business as well. According to the new chief executive officer of the company, Marc Caira says that due to the excess variety of products they offer, slow service is resulting and thus diminishing the coffee and doughnut chain’s competitive chances. Referencing Porter’s Five Forces, the threat of substitutes is pushing Tim Hortons to develop rival strategies in order to keep up with other expanding fast-food restaurants. Mr. Caira pinpoints areas the company can improve on, mainly speeding up service and introducing “stand-out items”, and also proposes introducing more creative twists to their products to attract consumers.
Personally, I am a frequent customer to Tim Hortons, and when comparing them to McDonald’s, key differences such as a better reputation, image and healthier options come to mind. Of course, it’s never easy servicing the never-ending lunch rush and therefore, if the company is able to find a way to speed up service without sacrificing the current “always fresh” quality of their products, they definitely would continue to remain a strong competitor in the fast-food market.
Pictures: Airdrie News, Events, and More. N.p., n.d. Web. 08 Oct. 2013.