UNIVERSITY OF THE EAST

CALOOCAN
College of Business Administration

Ann Margarette I.
Sambilay
BMG 114
BSAcT3H / MWF /
11:30-12:30
Dr. Rosalinda B.
Lacerona
 I. TITLE OF THE CASE:
II. TIME CONTEXT: 2014 – 2018 (The company is still operating in the present time.)
III. SUMMARY/ABSTRACT:

The company was founded in 1964 in Hamilton, Ontario, by Tim Horton and Jim
Charade, after an initial venture in hamburger restaurants In 1967, Horton partnered with
investor Ron Joyce, who assumed control over operations after he died in 1974. Joyce
expanded the chain into a multimmillion-dollar franchise. Charade left the organization in
1966 and briefly returned in 1970 and 1993 through 1996. The company had originally
been incorporated as Tim Donut Limited. By the 1990s, the company name had changed to
The TDL Group Ltd. This was an effort by the company to diversify the business, removing
the primary emphasis on doughnuts, and continuing the expansion of the menu options as
consumer tastes broadened.
The chain's first store opened on May 17, 1964, in Hamilton, Ontario, under the
name "Tim Horton Donuts"; the name was later abbreviated to "Tim Horton's" and then
changed to "Tim Hortons" without the possessive apostrophe. The business was founded
by Miles G. "Tim" Horton, who played in the National Hockey League from 1949 until his
death in a traffic collision in 1974. Horton had an initial venture in hamburger restaurants.
Soon after Horton opened the store, he met Ron Joyce, a former Hamilton police
constable. In 1965, Joyce took over the fledgling Tim Horton Donut Shop on Ottawa Street
North in Hamilton. By 1967, after he had opened up two more stores, he and Tim Horton
became full partners in the business. Upon Horton's death in an auto crash in 1974, Joyce
bought out the Horton family's shares for $1 million and took over as sole owner of the
existing chain of forty stores. Joyce expanded the chain quickly and aggressively in both
geography and product selection. The 500th store opened in 1991.
Ron Joyce's aggressive expansion of the Tim Hortons business resulted in major
changes to the Canadian coffee and doughnut restaurant market. Many independent
doughnut shops and small chains were driven out of business, while Canada's per-capita
ratio of doughnut shops surpassed that of all other countries.
On August 26, 2014, Burger King agreed to purchase Tim Hortons for US$11.4
billion, the chain became a subsidiary of the Oakville-based holding company Restaurant
Brands International on December 15, 2014, which is majority-owned by Brazilian
investment firm 3G Capital.
But every business has its declining stage. In today’s business, Tim Horton’s are
being left out in the industry by its major competitors, the Starbucks, Krispy Kreme and Mc
 Donald’s. Together with the undisclosed issues about Tim Horton’s adding nicotine to their
coffees, it has been said that this food chain doesn’t have healthy foods in their menus. With
this, the author of this case study wanted to create a strategy that will help the company
gain a huge competitive advantage in the industry.

A. VISION:
Our vision is to be the quality leader in everything we do.

B. MISSION:
Our guiding mission is to deliver superior quality products and services for our guests
and communities through leadership, innovation and partnerships.

C. CORPORATE SOCIAL RESPONSIBILITY:

INDIVIDUALS
GUESTS
Our Menu: Nutrition, Innovation and
Communication
We understand the importance of balanced nutrition
and are committed to offering our guests menu items
that include a variety of nutritious and great tasting
food and beverage choices.

Food Safety at Tim Hortons

At Tim Hortons, food safety includes the systems and
standard operating procedures that are carried out on
a daily basis, throughout all areas of our restaurants,
to protect our guests. Our goal is that safe food be
provided to each and every guest, every day.

Hospitality at Tim Hortons

At Tim Hortons, our guests are our number one
priority. We strive to provide the ultimate guest
experience that exceeds our guests’ expectations each
and every time they visit our restaurants.

EMPLOYEES

Our Corporate Employees

Our goal is to be one team, focused on delivering the
ultimate guest experience. This is done through an
engaging work experience and efforts to make our
company an employer that attracts, develops and
retains capable, engaged and high performing
employees.
 Restaurant Team Members
We support Restaurant Owners in making restaurant
Team Members feel welcomed in the workplace from
day one and that they have a satisfying experience
while working at Tim Hortons. Over 99% of our
restaurants are operated by Restaurant Owners.
Therefore, the vast majority of employees who work
at Tim Hortons restaurants (whom we refer to as
“Team Members”) are the employees of our
Restaurant Owners and not of Tim Hortons.

Training: Restaurant Owners and Team Members

Since its inception, Tim Hortons has had a culture of
training. We believe that training is an investment
and a necessary part of equipping our Team Members
with the skills and knowledge to deliver a high level of
service to our guests. Through training, we provide
the tools for Restaurant Owners and Managers to
drive superior restaurant performance.
PARTNERS

ENACTUS Canada
Together with Tim Hortons, Enactus Canada is
shaping generations of entrepreneurial leaders who
are passionate about advancing the economic, social
and environmental health of Canada.

Investors: Sustainability Reporting & Disclosure

We continue to report on our sustainability progress
on an annual basis with the issuance of this 2014
Sustainability and Responsibility Report. This year’s
report follows the GRI’s updated G3.1 Guidelines.

COMMUNITIES
CHILDREN

Tim Horton Children’s Foundation

Tim Horton Children’s Foundation (the Foundation)
was established in 1974 in memory of the great
hockey player and company founder Tim Horton.
Created as a way to honour Tim’s memory and to
keep alive his love for helping those less fortunate,
the Foundation provides an enriching and memorable
camp experience for children and youth living in
economically disadvantaged homes.
 Environmental Stewardship at our Camps
Environmental programming is a key part of a
camper’s experience with the Foundation. Each camp
infuses the environment into their programs in their
own way, by exploring and discovering the unique
natural regions which surround each camp.

COMMUNITY SUCCESS

Community Initiatives: Our Local, Regional and

National Programs
Our Restaurant Owners are active members of the
communities in which they operate their business. We
are proud to have Restaurant Owners who give back
to their communities.

Community Giving
We believe we have a positive role to play in enabling
communities to thrive and grow. We are proud to
support a number of causes each year, either through
financial support, product donations or gifts-in-kind,
and employee volunteer time.

Aboriginal Relations at Tim Hortons

We have been working on implementing a
meaningful, structured and long-term partnership
with Aboriginal communities for the past several
years.

COFFEE PARTNERSHIP

Tim Hortons Coffee Partnership

The Tim Hortons Coffee Partnership helps small-scale
coffee farmers and their communities by supporting
them in key economic, social and environmental areas
that will improve their coffee business and their lives.
Our approach is unique from other coffee initiatives
because we are involved in grassroots projects that
work directly with farmers, local coffee organizations,
and government and non-governmental
organizations.
 Ethical Tea Partnership
Tim Hortons is proud that all varieties of our tea leaf–
based tea served in our restaurants, including our
brewed and specialty teas* are sourced from a
member company of the Ethical Tea Partnership
(ETP).

*Excludes chamomile, honey lemon, peppermint, and

apple cinnamon teas because they are not tea leaf–
based.
THE PLANET
ENVIRONMENTAL STEWARDSHIP

Our Environmental Footprint and Performance

We strive to continuously improve the quality of our
environmental data, and enhance our understanding
of our environmental performance. Information on
our energy and water usage, as well as our
greenhouse gas emissions and waste generation, can
be found in this section.
Packaging: Designs That Reduce Our Impact
At Tim Hortons, we aim to consider the environment
when making decisions about our packaging.
Designing better packaging through material
reductions, resizing and reconfiguring for pallet
optimization, increasing recycled content, and using
new material types and sources, can result in
significant reductions in the associated
environmental impacts.
Waste Reduction at Our Restaurants
As we strive to reduce the waste created in every part
of our business, one of the most important areas of
action is tackling the waste generated at our
restaurants. We are working towards this objective
by implementing reduction, reuse and recycling
initiatives in our restaurants.
Green Building Design
To reduce the overall environmental footprint of our
restaurant buildings we also evaluate new
technology, design and construction methods.
 Corporate Operations
Our Corporate Operations includes our corporate
offices, distribution operations and manufacturing
facilities. We have been working to minimize our
corporate environmental footprint through energy
and water efficiency initiatives and increasing waste
diversion opportunities.
SUPPLY CHAIN

Our Supply Chain

Our supply chain is made up of a wide network of
suppliers, some of whom provide us with goods that
ultimately end up in our restaurants, while others
provide us with goods and/or services that help us in
our day-to-day business operations.
Our Business Partner and Supplier Code of
Conduct
We are committed to responsible supply chain
practices across our business. Our Business Partner
and Supplier Code of Conduct (BPSCC) is built on the
principles of respect, fairness and business ethics,
with regulatory compliance being a minimum
standard of doing business with us.
Coffee Sourcing and Verification
We have been sourcing our coffee from the same
regions in Central and South America since our
company was founded in 1964. Our coffee suppliers
are considered key suppliers and verification of
compliance with our BPSCC is of particular
importance in the coffee supply chain.
Animal Welfare
Animal welfare is an important issue to Tim Hortons
and all of our stakeholders, including our Restaurant
Owners, suppliers, and guests. We consider animal
welfare to apply to all aspects of animal care of the
farm animals within our supply chain.

Palm Oil
We are committed to doing our part to protect against
deforestation and land conversion arising from palm
oil production.
 D. AWARDS AND RECOGNITION RECEIVED:

2008 – Tim Hortons

1999 – Tim Hortons
Hall Of Fame Award

2011 – Tim Hortons (TDL Corporation)

1999 – M&M Meat Shops, McDonald’s Restaurants Canada, Tim Hortons
Outstanding Corporate Citizenship Award

IV. STATEMENT OF THE OBJECTIVE

To be able to gain a competitive advantage towards their competitors.
To be able to expand the food business in different places locally and abroad.
To be able to maintain and develop their current financial status.
To be able to innovate products and introduce new menu choices to the customers,
both prospective and old.
To be able to become the main food distributor when it comes to breakfast and not
just an alternative to other stores.
To be able to strengthen every franchise store they are operating.

V. CENTRAL PROBLEM
How can Tim Horton’s take advantage of the current food trends to gain a huge
competitive advantage in the food industry?

VI. AREAS OF CONSIDERATION (SWOT ANALYSIS)

a. They have a variety of products to offer to
their customers. (coffee, tea, sandwiches,
donuts.
b. They seek partnership with different food
companies liked Dunkin Donuts, Burger
King, Wendy’s and any other.
c. They ensure the coffee was always fresh.
They served their own brewed coffee
within 20 minutes after being brewed and
threw it away after 20 minutes of not
being served. This is their way of keeping
their coffee fresh.
d. They established a strategic plan that will
help them in the different aspects of their
operations and they called it “Winning in
a. There are rumors that Tim Horton’s are
adding some nicotine to their coffees that is
why it is very addicting.
b. Even though they serve their foods fresh, its
taste is somehow common compare to the
other.
c. According to some news, the US expansion
didn’t go well and resulted into closing 36
stores in New England.
d. Tim Horton’s doesn’t want to disclose
where they get their green beans and they
are not selling an organic coffee. This has
been a drawback to their public image.
e. Their restaurant is not big enough to cater
everyone. American students is said to
 the New Era.” occupy the entire place and there will be no
e. They also have a head office building that more seats with other people.
included the Tim Hortons University. It is a
training center for their franchisees.

a. Product expansion. Since they are in the
food industry, they can experiment every
now and then on a new products to meet
the changing taste and preferences of the
people.
b. People always seek foods. They may not be
the current number one breakfast chain in
the whole world but there will always
people who will look into eating in their
stores.
c. It is good that before they open a store for
franchise, they make sure to train their
people first.
d. They now have a healthier option in their
menu. Their lunch options now included
soups.
e. The Brunch and Brinner. This is an all-day
breakfast option of Tim Horton’s because
they have seen that in the more traffic
locations, the people are having their
breakfast later in the day.
a. They really have big competitors in the
industry that even if their prices are low,
the consumers are choosing others.
b. Climate change. Since they are in the food
industry, their ingredients are prone to
sudden weather conditions. The vegetables
might have some problems with pest and
the meats do have a short shelf life.
c. Slow economic recovery. This means that
since families are becoming tight with their
budgets, their will just choose to make
their own food in their homes.
d. Growing health conscious segments. Even
though Tim Horton’s added some healthier
options, they still don’t have the pure
veggie foods on their menu. And as we all
know people in abroad wants salads for
their meals.
e. The raw materials nowadays are getting
high prices. Like flours, coffee beans,
chocolates and teas.

VII. ALTERNATIVE COURSES OF ACTION (SWOT ANALYSIS)

a. The citizens will now be a. It will be very costly for

1. Clear first the issue that
are affecting their public
image and then produce a
special and healthy menu
for vegetarians and
everyone then expand
the place capacity lastly,
introduce some freebies
(year-end planners).
calm because they will
now be sure that they are
not drinking some
nicotine.
b. This will mean a business
expansion for the
company.
c. The public image will be
good because it can be
inferred that they are
caring for their customers.
d. More customers will want
to try their new renovated
place and their new menu.
e. Since they will have some
planners, their customers
the company to renovate
their places.
b. They will need more
suppliers for the special
menu.
c. The people might say that
they want healthier
options but they may not
eat it at all.
d. It will also be costly to
have a planner because
they will need someone to
design it in the computer
and publish it eventually.
e. If the special menu doesn’t
go well, they will just be
 will surely go back to the
stores to earn the planner.
a. It will help the company
gain a lot of revenue
because they will not need
to put up many franchise
stores just to connect with
customers that becomes
really costly on their part
and turning it down after if
it doesn’t become
successful.
2. Merge again with other b. The partner company will
companies and make it introduce and sell to their
long lasting this time. stores the Tim Horton’s
products (more specifically
the coffees and
sandwiches,)
c. They have done this many
times; they know already
what the problems may be.
d. The public will now be
seeing and tasting their
products everywhere
because of the partnership.
a. They will become
dominant among the
residents.
b. There will be a low
3. Look for countries or competition.
places that don’t have c. Job opportunities. Having a
enough food chains then franchise in a new
spread their franchise locations means they need
stores there. employees and the citizens
in that new place might
want to apply.
having a lot of excess
ingredients and it will just
rotten by time.
a. This time might not be a
good time to merge
because they have
undisclosed issues with
their products and these
companies don’t want
their food chains to
experience issues of the
others.
b. It might not work out
again just like the
previous partnerships.
c. This will take time
because the companies
need to review first the
products that they will sell
on their own outlets.
a. It will be costly if they will
be building a franchise in a
place they are not known
of because the citizens
might not patronize their
foods.
b. There will new
government rules and
regulations that they need
to apply in their stores.
c. They need to meet the
new taste and preferences
of the people in that area.
VIII. STRATEGY FORMULATION OR RECOMMENDATION

I therefore conclude that the best solution to the problem is alternative course of
action number 1 which is to clear first the issue that are affecting their public image and
then produce a special and healthy menu for vegetarians and everyone then expand the
place capacity lastly, introduce some freebies (year-end planners). This is so because, if you
wanted to keep your company going, you need first to fix the issues inside your company.
There are food chains that didn’t want to reveal their ingredients and recipes because it
might be imitated. But with Tim Horton’s, they just need to clarify with the public where
does their ingredients coming from because their customers are wondering if they are
really putting nicotine in their coffee that’s why it’s very addicting. A certain idea of having
safe food products can really help in gaining a lot of customers.

On the other hand, people nowadays can be very health conscious which is good
because we are learning to take care of ourselves and be aware of the thing that we are
eating. As a food distributor, we need to support our consumers in their way to living a
healthy life. As per Tim Horton’s, they need to establish food menu that really cater the
importance of eating fruits and vegetables, especially to the kids. In addition to this, even
though we are not rich in customers not just like Starbucks and other, it doesn’t mean that
we don’t need a bigger place to accommodate all of our customers. There will always be a
time that there will be a lot of customers coming on our store so we need to be ready for
them. And to make sure that our customers will be coming every now and then to our food
outlets, we need some freebies. The freebies will help us in earning revenue because the
people will surely pursue earning points or something just to get a notebook or a planner.

IX. PLAN OF ACTION

1. Tim Horton’s needed to make a public disclosure about the products and raw materials
they are using in cooking foods and their drinks.
2. After the issue has been cleared, introduce to the public the special menu. Explain to
them what the company is trying to achieve upon making this special menu.
3. Make them taste first the product and ask them for some suggestions and then develop
the product taste.
4. Launch it to the public with a right size and amount.
5. Continue making products with healthy ingredients for the customers.
6. Make them collect points or stickers for the planner and give it to them after they
completed it.
 X. POTENTIAL PROBLEM

1. What if the public doesn’t believe that they are not putting any nicotine on it?
2. What if the new food choices don’t suit the taste and preferences of the people?
3. What if the customers have special requests to be added on their menu?
4. What if the suppliers find it difficult to deliver raw materials to them because of the
sudden weather conditions?
5. What if the making and publishing of the planner become very costly?

XI. CONTINGENCY PLAN

1. Tim Horton’s must saw to the public on how they cook the foods and the ingredients.
2. Ask the customer what certain part of the food he/she wants to be improved.
3. Be sure to take into account the suggestions they get in the public.
4. Look for contingency suppliers to keep the menu going.
5. Make sure that customers will work hard to receive the planner.

RESOURCES

https://www.indeed.com/cmp/Tim-Hortons-Fredericton-&-Minto-Group
https://en.wikipedia.org/wiki/Tim_Hortons
http://sustainabilityreport.timhortons.com/
http://sustainabilityreport.timhortons.com/individuals-overview.html
http://sustainabilityreport.timhortons.com/communities-overview.html
http://sustainabilityreport.timhortons.com/planet-overview.html