Tim Hortons: Recession-proof?
By Jason Buckland, Sympatico / MSN Finance
The local auto plant is boarded up, you’re telling your car dealer you can’t afford the lease and no one’s renewing that tennis club membership.
Sure signs of a recession, right? We may be mostly out of the soup lines, but people just aren’t spending anymore.
Right?
Well someone needs to tell this to Tim Hortons, because drive-thru lines have never seemed longer and the morning rush inside their stores is as mad as it’s ever been.
David Pett of the Financial Post warns the doughnut giant is far from immune to the recession, but we certainly haven’t seen the signs.
Tim Hortons is likely to battle the storm in Canada because, well, it’s Tim Hortons and this is Canada. A cultural staple of this magnitude isn’t sure to feel the economic bite when its prices are pretty favourable and its consumer base is so rabid and loyal.
As Pett writes, more people are now going to opt against a $4 latté in favour of a Tim’s double-double, an idea likely to blame for Starbucks’ reported 10% sales decline in its fourth quarter last year.
We’re thinking Tim Hortons goes the way of McDonald’s, which noted a Q4 bump in sales, and keeps its stores packed through the recession.
Wherever you stand on Mickey D’s, it is comfort food for a ton of people. And since it’s relatively inexpensive, that’s going to count for a lot while people continue to scale back their dine-out budgets.
CTV seems to agree, anyway. They predict McDonald’s will be recession-proof because the grub makes people feel good. Shoppers Drug Mart should also do just fine because they provide products – deodorant, shampoo, etc. – people can’t do without.
Sure looks like people can’t do without Tim’s, either.
Posted by: Sandra Kehoe | Feb 19, 2022 9:06:32 AM
Especially since it is coming up to "Roll Up The Rim" time again. Oh, the line-ups!!!!
Posted by: Brian Bickle | Feb 19, 2022 9:33:14 AM
I go through the drivethru 2-3 times a day
Posted by: Ray Brenner | Feb 19, 2022 9:52:40 AM
HAHAHAHA going to Timmies 2 or3 times a day what are ya rich or just plain stupid especially if you live and work in the same city, make your own coffee and use real cream , and further more Timmies isnt that great of coffee anyways its only Mother Parkers so dont be thinking its something special. Save your money people and make your own damn coffee.
Posted by: M Priester | Feb 19, 2022 10:06:33 AM
I have cut my trips to Tim's...only get one if out for the day
Posted by: Gerry Ashby | Feb 19, 2022 10:09:07 AM
I have a very good friend who owns a number of Tim Horton's and is very successful at it. He is considered a model franchisee. However all of his stores are hurting, they have instituted a hiring freeze and all staff have had their hours reduced. So no - not even Tim Horton's is immune during these tough times.
Posted by: Dave | Feb 19, 2022 11:23:36 AM
Well Brian I think you should keep living how you live, and Ray you should probably keep living your life the way you live yours. Im sure Brian is not an idiot, .. and Im sure he and I are not the only 'stupid' people who use Tim Hortons more then 2-3 times a day. Ray, keep buying cream and making your own coffee, Brian, i'll see ya there some day!!! And although I dont think Tim Hortons is invincible to our current economic state, obviously its good to see such a Candian corporate standing strong.
Posted by: Witzy | Feb 19, 2022 11:50:24 AM
Dave,
You sound like a happy man; live and let live!
I too once thought that all those people in Timmie lines were stupid, and then I tried the coffee. I love this franchise, my whole family does, and I wish them and all of you well. I just wish they'd come up with a self-serve line for "coffee only" purchases.
Posted by: mike | Feb 19, 2022 11:51:34 AM
McDonalds has better Muffins and BETTER TASTING COFFEE!!! I switched month's ago and it I'm saving close to 35%. Wake up people, TIMMYS is a cult and make the switch. Do the math and see how much you will save/mth and not to mention, their line-ups in the morning are shorter and faster, which means less idling time and gas savings!!!!!
Posted by: Shelly | Feb 19, 2022 12:07:29 PM
As an admitted Timmies junkie, I have not slowed one bit. My God people, we can't give up everything. As far as McDonalds, who eats there? It not even real food. Sorry, prefer to support Canadian business.... protectionism baby...
Posted by: Gizmo | Feb 19, 2022 12:29:56 PM
So why is timmies stock down 20% this year???
Posted by: Sean | Feb 19, 2022 12:35:36 PM
2 large Tims per day, $1.49 each = $2.98 a day. Limit to that and in 365 days you will only spend $1095 a year. An all-inclusive trip to Cancun? Nahhhhh.... we need coffee. And I suspect folks spend a lot more than that, with donuts, bagels, etc.
If we saw where our money went, we'd be shocked at how rich we could have been.
Posted by: carlos | Feb 19, 2022 12:53:46 PM
I have a couple of timmies a day...but I agree that Mcdonald's coffe is way better. Myself and a few people at work are slowly switching...not because of the cost but because I think it tastes better
Posted by: Tim | Feb 19, 2022 1:03:27 PM
Macdonalds isn't real food.....agreed, but Timmies is just as bad.......they don't even use real eggs.....people wake up...
Posted by: Tim | Feb 19, 2022 1:03:36 PM
Macdonalds isn't real food.....agreed, but Timmies is just as bad.......they don't even use real eggs.....people wake up...
Posted by: Tim | Feb 19, 2022 1:03:43 PM
Macdonalds isn't real food.....agreed, but Timmies is just as bad.......they don't even use real eggs.....people wake up...
Posted by: Gerry Ashby | Feb 19, 2022 1:07:53 PM
Tim Horton's is no longer a Canadian company. Ron Joyce sold it about 5 years ago to Wendy's that is a true blue American company based out of Columbus, Ohio. Unfortunately it is no more Canadian than McDonald's itself. Sad but true.
Posted by: ED | Feb 19, 2022 1:11:04 PM
Timmies stock is down 20% this year,because I make my own coffee at home and save.The old fashion way,some people are too lazy and spead their money.
Posted by: Tim | Feb 19, 2022 1:19:17 PM
Ever since I bought a Cappacino / Espresso machine I have not been going to Timmies and never will again - I love my Caps at home.
Posted by: Gary Drummond | Feb 19, 2022 1:29:45 PM
Tim Hortons is a poor stock performer, and its 9 cent dividend is a joke. MacDonalds is a better investment.
Unless Tim Horton's does something stupid (like KFC and jack up their prices), they will ride out the recession (or possible depression) in one piece, as people will always buy a cheap cup of coffee.
What they should do is take a page out of the MacDonald's book (value menu) to boost sales.
Posted by: kay | Feb 19, 2022 1:41:11 PM
Tim Hortons is not Canadian it is American
wake up & smell the coffee