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: Tim | Mar 4, 2022 11:02:37 AM
All of you are only addicted to MOTHER PARKERS COFFEE that is all timhortons is!!!
Now with their par baked (flash frozen partically cooked donuts/bread from the bakery in BRANTFORD) NOTHING is FRESH anymore!!!
Yes Wendy's still own them WHICH MAKES THEM AMERICAN OWNED COMPANY!
Posted by: Phil | Mar 4, 2022 11:03:55 AM
Sorry people, doughnuts will never be healthy. Krispy Kremes are only good when they are first made...try one when they are cold...foul. As for Tim's...I would never drink their coffee and anyone who thinks a double double is drinking coffee is fooling themselves. Try drinking Tim's black, just as foul as Micky D's. I like Tim's chicken sannies but that is as far as I go. I agree with the person who said Tim's doughnuts are stale ever since they made that awful decision to precook them and ship them to the stores.
Here in Vancouver, Starbucks is king and Tim's is found in a few stores and Esso gas stations.
Posted by: Mikel | Mar 4, 2022 11:06:04 AM
Maybe Tim Horton's can buy out Krispy Creme. Then you'd ALL be happy!:)
Posted by: TIM HORTONS is still a U.S. registered company | Mar 4, 2022 11:07:02 AM
I hate to say in but McDonalds coffee is not bad. Tim Hortons tastes like crap if you don't drink it scalding hot. And scalding hot only burns your taste buds. Starbucks allegedly buys cheap beans and burns them for their flavour. Krispy Kreme donuts are fabulous if they are fresh. Eat 1 after an hour and it's just cold fat and sugar. At least a stale Tim's donut tastes better.
From Wikipedia - "Despite maintaining its operational headquarters in Oakville, the spun-off holding company was initially incorporated in Delaware, under the T.H.D. Donut (Delaware), Inc.. - On June 29, 2009, Tim Hortons Inc. announced that, pending shareholder approval (expected Sept 2009), the chain's operations would be reorganized under a new publicly-traded company, also named "Tim Hortons Inc.", incorporated under the Canada Business Corporations Act. The change is being made primarily for tax purposes".
Maybe receiving $4,500,000.00 (yup 4.5 million) annually in subsidies from the Canadian government for it's location in the Canadian Military compound in Kandahar helped with the U.S. owned operations move back to Canada?
Posted by: Chris | Mar 4, 2022 11:07:44 AM
Who cares? Tim Horton's is a corporate coffee chain that underpays their employees, serves crap coffee at an exorbitant price, and then plays' that off by holding children's camps to appear like the humanitarian.
Make your own coffee and support freetrade organically grown farms and their farmers.
Posted by: Rob | Mar 4, 2022 11:10:10 AM
Timmies is only popular due to the Hockeys player heritage. Their coffee is only Nescafe in disguise and the do-nuts or do nots. What was once a good snacking experience has been turned into an Ontario half baked hockey puck. The only thing good about Krispy Kreem is that they are fresh baked. Now that might make Tims do well. Return to the fresh real donut and use McDonalds Seattle coffee.
Posted by: Dave | Mar 4, 2022 11:10:34 AM
Reading all this.... A Few Points. Tim Horton's was purchased by Wendy's in the mid nineties. They sold it back to Canadian interests a coupla years ago. It is now a stand alone operation once again. Starbucks is a completely different business niche. No worries there.
Here in BC, it is the only province in Canada that actually makes thier own donuts. All the rest are centralized in Ontario. They need to get away from that in those areas.
Hope this clears up a few things. All the power to them.
Posted by: wayne | Mar 4, 2022 11:11:04 AM
I'm Canadian and don't get the Tim Horton attraction. It is the absolute worst coffee I have ever tasted, and their other products are garbage, donuts all taste the same, soups and sandwiches are awful. What I find really amusing is the fact people are in debt up to their assholes in this country and continue to blow money on such poor quality products when they can make better quality at home for a fraction of the cost.
Posted by: JJ Fullerton | Mar 4, 2022 11:12:33 AM
Tim Hortons will not make in the USA. There are way superior changes donw there. Give it a couple of years and they will be running back to Canada with their tales between their legs, just like, Swiss Chalet, Canadina Tire and others
Posted by: James Stott | Mar 4, 2022 11:15:55 AM
Timmy sells an great cup of coffee,their soups and sandwichs are first class,prices fair.Tell me what all the fuss is about,they know a good thing when they see,Timmy will flourish.Americans have good tastes,perhaps with the exception of hocky teams.
Posted by: Mitch | Mar 4, 2022 11:26:20 AM
Get a life! Tim Horton's is the worst coffee on the market. It is artifically seeetened and tastes nothing like a real cup of Starbucks. Duinkin Donuts is far better then Tim Horton's behind Starbucks. I guess you get what you pay for. If Tim Horton's pride themselves on cheap coffee, then the quality will inherently match the price. Their overprocessed "pastries" are stale and tasteless. At least Dunkin Donuts has variety when it comes to their food choices. Watchout America, Tim Horton's may try to penetrate your market, but don't expect them to contribute a dime to the local economy. Tim Horton's does not get involved with anything charitable besides their own self-serving charity. Canadians are so out of touch, that they pride themselves with Tim Horton's as a "cultural" icon. How pathetic. Oh, and did we forget to mention that Tim Horton's moved to the US not to long ago to pay less corporate taxes in the States, which shows you what a stellar "Canadian" company they are.
Posted by: JJ | Mar 4, 2022 11:26:56 AM
All I have to say is BREAKFAST SANDWICH!
They will kill with that sandwich, it's AMAZING! On top of that, you can get a coffee and "the sandwich" for three dollars. You can't beat that!
Posted by: Dawn | Mar 4, 2022 11:29:26 AM
It's almost un-Canadian to admit to not liking Tim's coffee but over the last couple of years I have been finding that their coffee just does not taste all that great. It frequently has a "burnt" taste and a few times I even commented to my friends that I thought it had a cigarette-like after taste. Their food is good, and I like their specialty teas, but I buy my coffee elsewhere now or make instant in my travel mug.
Posted by: Vijit | Mar 4, 2022 11:34:48 AM
I agree with Dane. Tim Hortons competition is Dunkin Donuts. Starbucks appeals to the Yuppy demographic which goes against everything Tim stands for (Cheap and non elite). I don't believe Doughnut shops are an institution in the USA like they are here in Canada. Americans have a many, many more choices. I remember being posted in the Seattle area for a year or so and it was very difficult to find even a Dunkin Donuts during my drive to work. I think if Tim Hortons tried to move South in a heavy handed way, they will only end up losing. They have a good thing going in Canada and why mess with and marginalise the brand. In fact keeping it's Canadian Iconic status (although it is really American - Wendy's) makes it special. I think Tim's should stay in Canada and invade only the Northern Border Amercan areas which can identify more with Canada and Tim Hortons, such as Wesern New York, Ohio and Michigcan. Best to stay well away from the rest of America.
Posted by: John | Mar 4, 2022 11:42:41 AM
Hey Guys, Juan Valdez is picking Tim's, Starbucks, Krispy Kreme and Dunkin Donuts and putting it in the same bag on the back of the same donkey so why doesn't everyone just go and buy their favourite coffee at their favourite location and enjoy.
Posted by: DerekB | Mar 4, 2022 11:43:52 AM
Tim Hortons is not about the doughnuts it is about the coffee. Tim Hortons prides itself on serving only the freshest coffee, never more than 20 minutes old. The soup and sandwiches are a welcome addition for a quick lunch that is not burgers and fries.
You go Tims
Posted by: Terry | Mar 4, 2022 11:44:16 AM
I am a proud Canadian, but I have to say Timmies is garbage. There is a reason Starbucks costs more, this is because they actually serve you real coffee, not over processed artificially flavoured crap. What ever happened to Drinking and eating "real" food and beverages. If you can support your local shops instead of the corporate guys.
Posted by: Dee | Mar 4, 2022 11:44:36 AM
I am Canadian born and raised however I think Tim Horton's is loosing its edge, in Halifax where I live there is a Tim Hortons on every corner however I prefer to go to Starbucks or Second cup. The brew is always fresh and never burnt tasting the only time Tim's follows the 20 minute fresh rule is durring peak times when they have no choice, and as far as the donuts....not a good time for me but my puppy does appreciate them.
Posted by: mack | Mar 4, 2022 11:51:09 AM
dwayne's right! And don't forget about our women!
Posted by: Ingrid | Mar 4, 2022 11:54:26 AM
How is this even a story, Tim Hortons IS NO LONGER A CANADIAN COMPANY! It is owned by Wendy's, an American company!