Will Tim Hortons' upscale restaurant plans hurt its brand?
Scenario A: You wake up Sunday morning and, as you usually do, head down to the local Tims to grab a coffee. You order a mug, snatch a newspaper and plop down next to Herb, Betty, Jim and the rest of the gang. You talk about nothing in particular, though you wouldn’t have it any other way.
Scenario B: That same Sunday, you get dressed and hop in the car. On the way to your favourite Tims is – huh? – another Tims, a new Tims. Inside this restaurant aren’t the familiar booths and tables, nor that counter top with the cafeteria-style grooves that run down from the cash to the sandwich pick-up area. The food looks the same, but you peer inside to see patrons sipping from mugs you don’t recognize, and now Herb, Betty and Jim are Chip, Kent and Joan, a trio of stockbrokers on their way to spin class.
Which setting do you choose?
Okay, scenario B is a little dramatized, but such is the worry over the latest Tim Hortons announcement that is sure to have Canada split in opinion.
By now you’ve heard the news our iconic coffee shop has made plans to refurbish, refinish and redesign as many as 900 of its locations as part of a new image Tims seems to be chasing.
Indeed, in an apparent bid to Starbucks-isize itself, the Oakville-based chain will spend up to $200 million this year to include what the restaurant calls “enhanced finishes, fixtures and seating areas” in some of its franchises. Up to 60 Canadian locations will also be converted to include a Cold Stone Creamery counter, the U.S. ice cream chain Tims has plans to soon integrate with.
Now, it takes money to make money, that we agree on. But part of this announcement seems a little counter-productive, doesn’t it? Tims already has a rabid, loyal fan base, and chances are you don’t know anyone who’s against Tim Hortons because of the aesthetics of its restaurants.
Why, then, fork over a few hundred million to jazz up business when business – by many accounts – needs little jazzing up?
No rational Tims customer will turn up its nose to nicer restaurant digs, but they may to the ambience that accompanies them. Look, what are the three things we know about the Second Cups and Williams’ of the world? They’re upscale, expensive and replete with the ability to alienate a huge percentage of Canadians. It’s nothing against those coffee shops, it’s just there’s a certain comfort level with Tims and its restaurants that may be best left untouched. Why mess with a good thing?
As Star reader CanadianBiker comments on the news Tim Hortons will remodel: “As long as they don’t become another Starbucks. The last thing we need is another pretentious over-priced ridiculous hangout serving … Toronto’s pseudo-intellectual hipsters.”
A crude analysis? You bet. But if these fears are out there for any Tims loyalist, why make the move in the first place? Why risk driving away your bread-and-butter consumer base to attract a smaller, less-faithful group of customers who can’t be trusted for lasting business? And what if these new remodelling trends – and we don’t see how they won’t – lead to a price jack on menu items down the road? What then?
If this is the coffee shop's retaliation for McDonald's' increasing efforts to carve into its market share, so be it. But when everything's said and done, the best change for Tim Hortons might be to make none at all.
By Jason Buckland, MSN Money
Posted by: Greg | Mar 9, 2022 11:50:58 AM
It seems to me as though the Executives of Tim Horton's have either forgotten who their original customers are or they're ashamed of their original customer base and hence they want to become a little more upscale. I agree with the sentiment: "why fix a good thing!?!" This notion of changing Tim Horton's image to compete more effectively with Star Bucks and the other upscale coffee franchises seems as though the franchise is slowly moving to alienate the blue collar workers from their traditional hangout spot. Its sad really!
Posted by: annie | Mar 9, 2022 12:00:17 PM
Tim's is Tim's no matter how dressed up they make it. We love our coffee and our resturant just the way it is. If they decide to do this remodel I fear like many companies before them it will be a beginning of the end of a great Canadian company. Greed ; its a deal breaker every time.
Posted by: Tina | Mar 9, 2022 12:09:04 PM
They should keep Tim Hoes like it is. It is a great environment to hang out in. The booths are way better than the super high stools they use in Starbucks or any other over-the-top coffee store. If anything let the manager or the store decide.
Posted by: Niagara George | Mar 9, 2022 12:10:05 PM
Maybe they can renovate the coffee beans as well. If you get rid of the double/doubles and drink it black, so you can actually taste the coffee, you will know Tim Horton's is second rate at best. They should start by spending their money in the areas that need improvement... fresher pastries and better coffee!
Posted by: Maurice | Mar 9, 2022 12:16:38 PM
If it ain't broke don't fix it. Tim's is like a home away from home. Whenever you're trying to decide what the plan is for the weekend with your firiends, you head to timmies and grab a cofee, sit and talk about it. Food for thought, how many other franchises try to emulate Tim Hortons?
Posted by: Diane | Mar 9, 2022 12:22:28 PM
I think it is a waste of their money.....but they obviously have lots. Every "timmy's" I go to is always busy and why fix it if it ain't broke....oh ya GREED. I am a timmys junkie and The atmosphere in A Starbucks doesn't do it for me. Although you probably won't lose money I don't see it as being a great gain either.
Posted by: Unbiased Canadian | Mar 9, 2022 12:22:36 PM
It is a fine line that must be walked in order to stay ahead.
The other side of the risk scenario with change is "complacency", which occurs when change and innovation are absent as a result of an unwillingness to forge ahead keeping up with the times and the market. Think about your local main street, previously the heart of the commercial community in your towns / cities. The majority of those shop owners through the years were dependent on a local and loyal clientele which was accustom to a "comfortable" don't change a thing environment. Things changed, needs & wants are constantly evolving whether it is for price, assortment, convenience, service, etc ...
If you wait for the market to tell you exactly what they want and then decide to move towards their expectations (which often the consumer doesn't even understand their own wants / needs) because you are concerned about upsetting your current strategy or operation I can guarantee one thing, somebody else is already in the market position servicing those customers and eating into your business.
Tim's has a relatively good service and food quality concept that resonates with Canadians, but so did a chain by the name of Robin's Donuts in the west of Canada before Tim's showed up with what would have been considered at that time as an upscale concept relative to Robin's. Who would have thought that "everyday Joe & Jane" would leave the comfortable confines of Robin's Donuts to joing the "suits" at the evil Tim Hortons with their clean and fancy tables. The reality is, there was never an abundance of suits or pretentious settings at Tim's 10 years ago, and that is not the plan for the future. As in the case of Robin's Donuts, our tastes evolve, somebody presents a concept that meet those tastes and we decide to patronize their stores.
Tim's is at the front this process , they don't want to be Starbucks and they don't want to discriminate against any particular demographic - in fact their ability to capture customers from all social classes is an amazing accomplishment.
It is a constant battle to establish and maintain the optimal position in this market segment, TIm's has shown an excellent history of meeting customers expectations, I expect that they will continue to evolve and maintain their strategy by moving to meet expectations within the marketplace providing customers with products and environment they will love that they didn't even know they desired until they were made available through their favourite quick serve destination.
Posted by: Tim Robins | Mar 9, 2022 12:23:41 PM
Robins will take back market share if Tim's change.
Posted by: Unbiased Canadian | Mar 9, 2022 12:28:35 PM
Classic handle Tim Robins ... you must be on your blackberry chilling at a Robin's in the Thunder Bay area hammering back some Robin's eggs while sipping some classic Robin's coffee, which by the way isn't a terrible thing.
Posted by: Georgina | Mar 9, 2022 12:44:38 PM
Why change a good thing? I live in an area that has ice cream and one morning with line ups out the door a person is filling the ice cream containers do we really need this person working on ice cream while we all wait in line for our coffee and bagel? Common sense should prevail!!!!!
Posted by: chris m | Mar 9, 2022 12:56:55 PM
I go to Timmies to sit and have a coffee and a muffin and enjoy the company and conversation with my peers that includes everything from a conversation about hockey and the best cherry pie recipes. There is already starbucks and second cups and timothys for the suits that give you a dirty look if you sneeze while they are on a conference call or if your son accidently slips and touches their laptop during the "deal of a lifetime". Tim hortons PLEEEEEEASE dont change.....if its not broken, don't fix it!!!!!!!!!
Posted by: Mike | Mar 9, 2022 12:59:01 PM
New Coke. That's all I have to say.
Posted by: Judy Cloughley | Mar 9, 2022 1:08:30 PM
I think that if Tim's revamps to appeal to the Starbuck crowd MacDonalds will pick up the folks that currently go to Tim's to enjoy a good coffee with good friends.
I believe that we folks make up a big chunk of Tims clientele. Will Tim's be able to make up the difference with the upscale crowd that now currently frequent Starbucks and Second Cup? MacDonalds already is drawing business with their improved coffee - if the whole down home feel about Tims changes, MacDonalds will be picking up alot more business.
Posted by: PirateKitty | Mar 9, 2022 1:20:37 PM
Ugh, what a waste of money, I'd rather see it spent on upgrading their kitchen equipment and making doughnuts in store again. THAT would be a good use of money, I'd even pay double price for the doughnuts. Who cares if you can get a doughnuts for under a buck when it's a dried out piece of crap.
I think it's safe to say the majority of Canadians don't give a rats ass about fancying up Tim's, it's impractical and wasteful. We want our coffee hot and our doughnuts fresh, but Timmy's just isn't listening.
Posted by: Iswald | Mar 9, 2022 1:29:28 PM
Wannabee's go to starbucks to be looked at
Real people go to Tim's
Change.....you'll lose me and all my friends.
Posted by: Gwen | Mar 9, 2022 1:31:19 PM
I have only recently got into Timmies Coffee,please don't mess with a good thing.
Posted by: Susan | Mar 9, 2022 1:34:19 PM
As I don't like Tims coffee and haven't liked the donuts since they stopped making them in store it really doesn't matter to me what the places look like I won't go
Posted by: I love Timmy's | Mar 9, 2022 1:51:40 PM
I hope everyone understands that by Tim's spending money its gonna come out of our pockets. Starbucks has a $5 coffee and they are "upscale", Tim's is $1.50 and anyone can go in there. If your in overalls and you want to go get a coffee, you go to Timmy's. Tim's feels homey and there is no ambience music playing in the background. If Timmys tries to be upscale, their prices are going to follow and their customer base will dwindle.
Posted by: Verd Locke | Mar 9, 2022 1:54:12 PM
I shudder at the thought of such drastic changes to our current Tim,s coffee shops. There is certainly no need to upscale to what will surely become a disappointment to the average Tim Hortons' patrons. Leave it alone as you have a great thing going right now. DON'T PLAY WITH FIRE, YOU WILL SURELY BURN.
Posted by: Plain Coffee Drinker | Mar 9, 2022 1:58:31 PM
Why spend $5.50 on a Vente low fat no whip extra hot something or other that i can't pronounce when i can go across the street and for $2.00 i can get a large Double Double and no snotty teenager staring me down like I'm the idiot...Timmies would do better to leave well enough alone, haven't the masses spoken already?