Tim Hortons plans expansion in U.S.

[JNA]

By Neil Parmar; The Wall Street Journal
June 24, 2005; Page B2
http://journalism.nyu.edu/portfolio/parmar/WSJ.html

Highlights:

"The chain is so popular that Canadians overlook the fact that Tim Hortons has been American-owned since 1995, when it was acquired by Wendy's International of Dublin, Ohio. Hortons makes clear that it operates independently from Wendy's head office and the stores are virtually all run by Canadian franchisees.

Hortons has long had a small presence in this country, initially in border areas like Buffalo, N.Y., and later branching as far south as Ashland, Ky.

Hortons wants to change that. The chain recently announced plans to nearly double its size in the U.S. by adding 240 stores by 2007, from 260 stores currently, mostly in the Northeast and Midwest. To lift its profile, Hortons won't play on its Canadian roots. Instead it is taking a leaf from its Canadian marketing strategy of emphasizing its community ties.

Analysts say Hortons's slow but steady U.S. expansion is the right approach. "You don't want to be the Gap of coffee shops, only because that's already taken up with Starbucks," says Jonathan Asher, president of branding-consultant Dragon Rouge. "You want people to think it's their own local place and that they've just discovered it," he says. "

I want and "Timbits"

[mgk920]

I wonder if Wisconsin is on their 'hit' list???

Also, I'm wondering when we'll start seeing Waffle Houses in the upper Great Lakes region (Chicagoland, Wisconsin, etc).

Mike

[UpstateNYRox]

My friends in Pittsburgh are jealous that I live 2 blocks away from a Tim Horton's here in Buffalo. I hope for their sake that Timmies makes it down that way, they just recently opened a couple locations 100 miles north in Erie, PA.

[BKM]

Given the problems Krispy Kreme are now having, is there a market for another donut chain? But, at least their expansion plans are slow

[jringel]

I like the plans to become a neighborhood coffee joint that the people own. Let's just hope they can prevent sprawl with their growth plans. I worked at a Tim Hortons in Saline, Michigan for 4 years and it was great. Loved their food and drinks! They came to our town by purchasing the vacated Hardee's store. It was a nice reuse of an exisitng building. Unfortunately the corporate offices don't like anything to be home made anymore so everything is now mass produced. I worked from 1999-2002 and we were making all of our donuts, muffins, and pastry items fresh from the back of the store. Now everything comes in a container or box premade and you just heat them up on the oven. I think some of the character and taste to the food has already diminished so I don't visit as frequently anymore.

[Cardinal]

Given the problems Krispy Kreme are now having, is there a market for another donut chain? But, at least their expansion plans are slow

I heard an interesting comment from an analyst yesterday, who pointed out that unlike KK, Dunkin' Donuts has always touted their coffe as much as their donuts. That is why they are better able to weather the fickleness of the donut-consuming public.

Krispy Kreme probably suffered from the "fad effect," where its donuts and shops were popular due to the hype around them, rather than any true craving or loyalty. I am among those who do not like their donuts at all, and I have devoted most of my life to the appreciation and study of fried or baked rings of dough.

Tim's donuts ar good. I look forward to their arrival.

[cnyOntario]

I hope they come to Syracuse. Both Ottawa and Rochester have Tim Hortons and they are so close.

[passdoubt]

The problem with donut/coffeeshops is that they rely on being a meeting place and a convenient stop as their only reason for existence. You can make your own coffee and buy your own donuts at the grocery for a tenth of the price of Dunkin or Krispie Kream or Tim Hortons. It's not like "real food" where a cook makes you a unique meal that would be hard to easily replicate at home. It's pretty damn easy to just brew yourself a great cup of coffee for 5 cents before you leave for work and grab a donut out the fridge instead of plunking down $2 to get them on the way there. Maybe I'm just not the coffee and donut connoisseur that I should be.

[nemo31]

I like the plans to become a neighborhood coffee joint that the people own. Let's just hope they can prevent sprawl with their growth plans. I worked at a Tim Hortons in Saline, Michigan for 4 years and it was great. Loved their food and drinks! They came to our town by purchasing the vacated Hardee's store. It was a nice reuse of an exisitng building. Unfortunately the corporate offices don't like anything to be home made anymore so everything is now mass produced. I worked from 1999-2002 and we were making all of our donuts, muffins, and pastry items fresh from the back of the store. Now everything comes in a container or box premade and you just heat them up on the oven. I think some of the character and taste to the food has already diminished so I don't visit as frequently anymore.

They have opened two Tims im my area and are building a third. Krispy also opened recently. For my money I will take the local shops where I get everything made from scratch. I have three of these 5,7 and 15 minutes from me and are usually on my way to or from somewhere. The price of the locals is half as much.

[Zoning Goddess]

Donut shops and coffee stops open and close with alarming regularity here. I'd be surprised if a new chain could make it in our area.

[BKM]

The problem with donut/coffeeshops is that they rely on being a meeting place and a convenient stop as their only reason for existence. You can make your own coffee and buy your own donuts at the grocery for a tenth of the price of Dunkin or Krispie Kream or Tim Hortons. It's not like "real food" where a cook makes you a unique meal that would be hard to easily replicate at home. It's pretty damn easy to just brew yourself a great cup of coffee for 5 cents before you leave for work and grab a donut out the fridge instead of plunking down $2 to get them on the way there. Maybe I'm just not the coffee and donut connoisseur that I should be.

Supermartket donuts =

[jsk1983]

Tim Horton's seems to have a location on practicaly every street corner in greater Buffalo. In my opinion they are nothing special, I don't really understand their popularity other than the the shear ubiquiity of them. Every morning their seems to be a line of cars 10-20 long waiting at the drive-through and about two people inside. Appareantly people don't like to get out of thier cars and would rather sit in the cars.

[jhboyle]

not that this is critical, but we actully have 3 up here in Erie

[abrowne]

Tim Horton's couldn't produce an appetizing dish if a gun was at their head. I wish them nothing but failure in this endeavour. Americans beware: Tim Hortons is garbage. The coffee is burnt, the sandwiches all taste the same regardless of type (is that red pepper? maybe chicken? lettuce? bread? who knows, it all tastes a sort of translucent grey), and the donuts are lackluster at best.

All of this and prices aren't even low!

[cmd uw]

Tim Horton's couldn't produce an appetizing dish if a gun was at their head. I wish them nothing but failure in this endeavour. Americans beware: Tim Hortons is garbage. The coffee is burnt, the sandwiches all taste the same regardless of type (is that red pepper? maybe chicken? lettuce? bread? who knows, it all tastes a sort of translucent grey), and the donuts are lackluster at best.

All of this and prices aren't even low!

Judging from their increasing sales, profits and popularity, many other people think otherwise.

Personally, although Starbucks and Second Cup are my favs, I also like Timmys. Sometimes their coffee is good and sometimes it's not. They make good sammys and their soup is quite good as well.

[abrowne]

I never said they weren't successful. Draw what conclusions you may about Joe Public from his habits, though. Horrible fare. I'm not some sort of Starbucks snob, either, to be clear - I find their coffee a bit too acrid.

Good point about their soups. The soups and chilis are actually the only items that are reliably edible (although you can thank Campbells for that).

[Gotta Speakup]

I am only familiar with Tim Hortons through seeing their advertisements at hockey arenas on television. I had always wondered what they were. Now I wonder if hockey is ever going to make a comback.

[MitchBaby]

I never said they weren't successful. Draw what conclusions you may about Joe Public from his habits, though. Horrible fare. I'm not some sort of Starbucks snob, either, to be clear - I find their coffee a bit too acrid.

Good point about their soups. The soups and chilis are actually the only items that are reliably edible (although you can thank Campbells for that).

I'm going to have to disagree with you on this one. Generally, the coffees are better than any of the other local coffee shops, which in Vancouver, there are plenty of them. The sandwiches are good, and for the same price as a MacDonalds Burger, Shake and Fries, you get a good sandwich, coffee/tea and donut. It may not be the best food in the world, but you could do a hell of a lot better.

Tim Horton's is less of a donut place now as opposed to a general coffee/sandwich place with decent donuts and comparatively healthy options. Yes, Tim Horton's is owned by Wendy's, but as stated by an earlier poster, they are a franchise, so most of them are Canadian owned and operated... I think they will do much better than Krispy Kreme, because they fill a niche that I don't think has been filled yet in the States...

[BIH80]

I want to try this Tim Horton's. I hear they make good donuts. All I know is they can't be bettern Krispy Kreme.

[Wannaplan?]

I avoid Tim Hoton's at all costs. I visited my first one in 1996, off the QEW in Ontario, and I loved it! But when they landed in Michigan about 5 years ago, all I've ever encountered are stomachaches and horrible service. I give the chain, at least here in Michigan, a two-thumbs down.

[DetroitPlanner]

I love the fact that I don't have to cross the border to get Tim Horton's coffee. If I am not mistaken, there are probably more Tim Horton's in the Detroit area than Starbucks. The coffee is among my favorite in chain store coffee.

Get ready non-border communites for the attack of the Tim-Bits!

[panchess03]

Tim Horton's seems to have a location on practicaly every street corner in greater Buffalo. In my opinion they are nothing special, I don't really understand their popularity other than the the shear ubiquiity of them. Every morning their seems to be a line of cars 10-20 long waiting at the drive-through and about two people inside. Appareantly people don't like to get out of thier cars and would rather sit in the cars.

..I want to see a Tim Horton's there..

[NDPlanner26]

Tim Horton's seems to have a location on practicaly every street corner in greater Buffalo. In my opinion they are nothing special, I don't really understand their popularity other than the the shear ubiquiity of them. Every morning their seems to be a line of cars 10-20 long waiting at the drive-through and about two people inside. Appareantly people don't like to get out of thier cars and would rather sit in the cars.

And we wonder why we are fat! Nothing like a doghnut for breakfast and probably a big mac for lunch, and having a pizza delivered for dinner, all without having to walk 1 step.

I drive by a Krispy Kreme everyday on my way to work and it is right in between a gym and a GNC (general nutrition center) store, with a natural food store two down, kinda out of place, but its the only one that ever seems busy.

[nerudite]

I agree with the other posters that state that Americans should run in the opposite direction of a Tim Horton's. Their coffee is okay, but really no better than any regular C-store (Mac's c-stores in Alberta serve SBC coffee, which is better than Tim's). And their donuts are mediocre at best. Oh yeah, and their sandwiches are truly gross. I think the only way that they will 'make it' for a large expansion in the States is to really tout their other menu offerings other than donuts (and hopefully improve upon them). It seems that the donut market in the States is pretty saturated (no pun intended).

[GeoTech]

I think their coffee is good. But their donuts are middle of the road. Even in Buffalo, the better place to get doughnuts is a Tops Grocery Store Bakery (Awesome sugary and lard concoctions).

The timbits are perfect for meetings. Nobody has to look like a fool by fighting with a full sized, jelly-filled, powdery puff-ball.

"Everything in moderation"