Tim Hortons’ 5-point plan for financial growth
September 17, 2013 | Russ Martin | Comments
Tim Hortons‘ chief executive officer Marc Caira met with media Tuesday in a plush, renovated Tim Hortons restaurant near the company’s Oakville, Ontario headquarters to lay out his plan for growth.
Caira, a former Nestle executive who joined Tim Hortons in July, has an ambitious plan to shake up the company’s offering and increase profitability in both the U.S. and Canada. Here are five points Caira sees as key to the quick-service chain’s future growth.
Lineups spiral out the door at busy Tim Hortons locations, which Caira believes is a result of its diverse product offering. To get customers through checkout faster, he plans to streamline the restaurants offering, stating, “Our lineups are too long. As a result, our people are much busier in the back. When our people are much busier, sometimes the order accuracy is not what it should be.”
2. U.S. franchise expansion
Growth in the U.S. has long been a struggle for Tim Hortons. Its U.S. investors have said the company’s growth isn’t drawing fast enough returns. Calling the U.S. expansion a “must-win battle,” Caira laid out a plan for that relies heavily on franchisees, including owners who hold multiple locations and sell the rights to franchises within a specific area.
3. Vending machines
Caira said there is a big opportunity to sell Tim Hortons branded goods at other stores, as it currently does with single-serve coffee. He also said the company will explore creating Tim Hortons vending machines for other businesses including offices.
4. Product changes
Though Caira said he plans to streamline the offering, he also outlined the potential for new products, including juice- and milk-based drinks aimed at younger consumers. He added that Tim Hortons is making gains in the lunch market and eventually plans to serve dinner.
5. Health-based marketing
Known for donuts and coffee, Tim Hortons is not currently a destination for health-conscious consumers. Caira plans to change that with healthier options paired with health-and-wellness-based marketing.