Tim Hortons wages 'all-out war' for U.S. territory
If you live in certain parts of Canada, you remember Krispy Kreme Doughnuts, the U.S. heavyweight that tried to creep north a few years back and establish itself across the border.
To much hype, Krispy Kreme opened its first Canadian outlet in Mississauga in 2001 and – after its initial success – announced another 32 franchises would soon follow.
Well, we all know what happened then: the novelty of the donut shop quickly wore off as popular culture continued its shift away from fatty, Orson Welles-like unhealthy foods.
Canadians, it seemed, only wanted to get their pastries from one place, and of the 18 Krispy Kreme stores that actually opened here, just five now exist save for a few kiosks in gas stations. The lesson – don’t mess with Tim Hortons on its home turf.
Yet, would that same principle apply if the tables were turned?
Tims, as you know, is making waves in the U.S. these days. It has stores scattered across a few states and even some primo Yankee real estate inside Times Square.
Though while the Canadian coffee giant has only flirted with Yankee expansion before, could Tim Hortons do what Krispy Kreme couldn’t? Invade the U.S. and knock off the incumbent java power-chain, Starbucks.
According to MSN Money down south, Tims is coming on strong in Michigan, at least, swallowing up the territory that Starbucks is retreating from.
The article claims Tims is “waging an all-out war” against the Seattle chain in the Wolverine State, and that it’s only in its beginning stages of the Canadian retailer’s plan to soon dominate the U.S.
With 125 new Michigan stores on the way – and Starbucks’ having shuttered as many as 25 sites over the past two years – Tims is certainly making a strong U.S. play. But can it sustain?
Tims unquestionably survives in Canada because it’s a staple of local society, yet what reasons would American consumers have to accept its encroachment on their territory?
Here’s one: low-cost. There’s no time more than now where people, especially in Michigan, respect their money. Tims offers good food and coffee at fair prices, and that’s something that’ll legitimately register with a state trying to recover from a 15 per cent unemployment rate.
Will Tims succeed, then, in the northern U.S. and beyond? That’s up for some debate. It appears, at least, that Michigan is a pretty good start.
By Jason Buckland, MSN Money
Posted by: Jack Lamond | Mar 4, 2022 1:15:44 AM
I have a daughter that I visit in North Carolina and I can attest to the fact that the Krispy Creme Donuts (even when bought from a gas station Kiosk) are far superior in taste to Tim Hortons and they are always 100% fresher - especially now that Tim Horton's doesn't even cook their donuts on site but choose to hallf cook them at a central location in Ontario to be shipped across the country and re-cooked at the store. Nine times out of ten you buy them and they are already stale. Add to that, even MacDonald's sells better coffee and I don't see how Tim can make it in the states as long as they are based in Ontario and want to centralize production there. I would gladly pay double for Krispy Kreme if I could get them in Nova Scotia but, alas, I have to be satisfied with purchasing them when I go to North Carolina.
Posted by: Moe | Mar 4, 2022 1:35:43 AM
Jack, you are obviously an american - only support your own chains - maybe Canada should get rid of the American chain stores - typical american always complain - Tim Hortons has better coffee and Krispy Kreme donuts really now! Wake up
Posted by: philip | Mar 4, 2022 3:13:33 AM
I don't know if Tims will be able to hang on in the US simply because there are so many choices available down there anyways. From bona fide coffee shops to drive through parking lot coffee shacks.
As far as Krispy Kreme goes the one time I had one of thier drinks and doughnuts in Florida I thought I'd died and gone to taste heaven,everything else I had ever eaten seemed tasteless by comparison.
Posted by: ur mom | Mar 4, 2022 3:52:34 AM
Jack Lamond and Philip, ur mom loves tim hortons. She told me last night.
Posted by: Sexy | Mar 4, 2022 4:31:07 AM
Tim Hortons is already doing great in the Niagra falls, USA and Buffalo Region.
When I go across the border for my Shopping Therapy... Tim Hortons is popping up everywhere. They are doing great, theyre always busy.
Plus, they give bigger portions in the USA.. A large in Canada is a Medium there so they obvious competing and doing well.
They will and are already making a success in the USA...
GoodLuck to the Tim Hortons Company.. Hopefully soon i'll see you in NYC or in Vegas :).
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Posted by: dave | Mar 4, 2022 6:08:39 AM
tims is great coffee . when ya cross the border just to goto tim hortons , that says it all . yes tims is in michigan and thats a good thing but really if you want the best of tims goto a canadian location sometime and taste the difference . while the wife is on temporary assignment in the usa south i UPS to her cans of horton coffee .
Posted by: sara | Mar 4, 2022 7:19:34 AM
Americans - hate them. Tim Hortons - love it. Dave @ 6:08:39 - u rock for shipping your wife the best ever coffee.
Posted by: MINER BILL | Mar 4, 2022 7:33:11 AM
Just came off a 2 week road trip through the States and have been to each and every of the 50 US states as well as Canada's 10 provinces and 3 territories. The first thing I did when I came across the border at Winnipeg yesterday was stop at Timmies for my coffee fix. With no choice but crappy truck stop coffee throughout rural USA, Crispy Cream was no where in sight. I frequent Starbucks and Crispy Cream in the US but both these Prima Donna chains are mainly found in large cities and elite malls. Tim Hortons is the average man's coffee shop and should survive in the US. Timmie's has 12 locations in Manhattan and going strong there too but will never displace Starbucks with its typical Yuppie coffee crowd.
Posted by: Bob Cyr | Mar 4, 2022 7:44:25 AM
Krispy Crap vs Tims.....not even a far fight........The Tims product even though it is "Par Baked" just like every loaf od bread you buy now, is far superior to Krispy Creme. The preseritives that KK puts in its product is crazy, thats why you think it is SOOO fresh. You buy a dozen, set them on your counter and eat them the next day and they still taste fresh.......thats not good thing it just proves that the product is full of stuff I don't want ot eat...........Tims products are better than mosts, always at a fair price and how about how's its delivered.........Fast and freindly.......Tims vs Krispy Crap.........give me a break.......BOB
Posted by: Cheryl | Mar 4, 2022 8:21:06 AM
Tim's can survive anywhere! It's great coffee, food and prices should be welcomed by all in the US Try it and you will be hooked! Welcome to the US Tim's...Canada loves it and we hope you all do too! Make North America a Tim Horton's continent!
Posted by: Dwayne | Mar 4, 2022 9:08:01 AM
Hockey , Molson Canadian and Tim's . We got you beat USA .Sorry !
Posted by: Tony | Mar 4, 2022 9:37:35 AM
What is the big deal? Tim's ,like a lot of things started Canadian, then became American. Wendy's owns it now. It can only get better. It is not a matter of what is better or what is patriotic. Tim's is addictive. You only have to try it once.lol
Posted by: Gary | Mar 4, 2022 9:49:38 AM
There is plenty of room for Tims South of the border and I mean far South. Spending a lot of time in the Orlando area revealed one key element of social culture missing... Coffee culture... Yes you have Dunken donuts here and there, every gas station has a coffee section, Starbucks is present in key areas, but the quality and service are not the same... There is room for Tims on every corner for the averege guy... Tims key to success lies in Customer service, quality and availiability.... Yep I think Tims will be a sucess in the US so please send a franchise to Orlando..., say at the airport would be a good start for us traveling Canadians....
Posted by: Amy | Mar 4, 2022 9:54:21 AM
*Tim's is no longer owned by Wendy's.*
I went to Florida last year and couldn't find a decent cup of coffee anywhere. Starbucks is gross. The first thing I did when I got out of the airport was drive to the nearest Tim Horton's for my extra large double double. It was like heaven!
Posted by: Unbiased Canadian | Mar 4, 2022 9:59:13 AM
Miner Bill's comments are right on the money. Starbucks and KK are not the biggest piece of the puzzle for Tim's in the USA, I am suprised that nobody has mentioned Dunkin Donuts or McDonald's. DD & McD's are the companies that has the most at risk with a Tim's presence in the USA. In Canada Starbucks and Tim's co-exist servicing customers in different ways with somewhat of a similar "base" product. It will always be this way, people have different expectations from each company. McDonald's has missed the boat, after years of serving sub par coffee in their restaurants they have awoken (in Canada anyways) to see that Tim's have more than doubled the sales of McDonald's in the Canadian market with an aggressive campaign to earn more share in the competitive breakfast sector with their introduction of the English Muffin / Egg Sandwich. The Tim's equation is simple, good quality, fair priced, "healthier alternative" to a quick burger on the road. As a result, they have been embraced by Canadian consumers on a grand scale and through this connection established a strong patriotic position through the country. Whether they are Canadian, or German, or Italian it is the simple equation that made them successful in their place in the market in Canada that will determine their success in the USA with one exception; How do they communicate to USA consumers that a better alternative is available, slowly making it a part of USA culture the way McD's and DD have done for years with a product that when compared to Tim's doesn't measure up.
Posted by: Tim | Mar 4, 2022 10:50:07 AM
It seems to me that Tim Horton's is actually competing against Dunkin Donuts, as they both offer the same kinds of items and are located in similar locations. I think Starbucks are closing because pepole aren't choosing premium coffee as much in certain markets. I'm a Canadian that lives in Syracuse NY and Tim's now has a strong presence here competing head-to-head with Dunkin Donuts for turf and I couldn't be happier. The "average Joe or Jane" buys from Dunkin, not from Starbucks, so these are the people that Tim's needs to win over to keep going strong in the U.S.
Posted by: dan c | Mar 4, 2022 10:55:34 AM
I've tried Tim's hundreds of times in the U.S., it's not the same. Ours is better. I think they treat their water differently. But I'd still take a Tim's over there before a KK, McD, or Star coffee any time.
Posted by: Mike | Mar 4, 2022 10:56:47 AM
Krispie Kreme donuts may appear to taste better but that's only because they contain alot more fat than Tim's . Compare nutritional values between KK and Tim's donuts and you will get the real story.
Posted by: Dane | Mar 4, 2022 10:56:57 AM
This article is missing the boat. Tim Horton's doesn't compete with Starbucks because they are completely different kinds of coffee stores. Tim Horton's REAL competition in the US is Dunkin Donuts. They are the ones who they will be taking the market share from.