Tim Hortons case analysis

Adil tchabi (301353300)

Centennial college

BUSN119

Paul Pinkus

December 6 2023
 Table of Contents

Business Environment ........................................................................................................................ 3

Business Structure ............................................................................................................................. 4

Problem Identification ....................................................................................................................... 5

Business Response ............................................................................................................................. 5

Recommendation .............................................................................................................................. 7

Conclusion ......................................................................................................................................... 8

Reference .......................................................................................................................................... 9

Business environment:

52 years ago, on Ottawa Street in Hamilton Ontario, at a disused petrol station

one of Canada's biggest commercial success stories had its start. The foundation was
set in 1964 by former National Hockey League (NHL) player Tim Horton, who started a

coffee and muffin company with retired naval officer and Hamilton police officer Ron

Joyce. Over the past fifty years, this company has expanded to become the largest

Quick Service Restaurant (QSR) chain in Canada. With 5000 Tim Hortons, the company

is currently the fifth-largest fast-food restaurant operator in the world. It has stores all

around the world, with the majority (more than 4,000) being in Canada. Currently, Tim

Hortons serves as much more than simply a bakery and coffee store, but also a

cannadian icon. In 2014, the US fast food giant Burger King and the Canadian coffee

shop firm Tim Hortons merged to become RBI Inc. (Restaurant Brands International). In

2017, Popeyes was added to the company. Tim Hortons' direct competitors are

McDonald's and Starbucks, two multinational companies (MNCs) with American bases

that offer food and beverages. In Canada, the US, and globally, McDonald's and its

recently launched McCafé brand coffee are widely considered to be two of the biggest

and most formidable rivals in the fast service food and retail coffee industries. Another

noteworthy rival in the beverage retail sector is Starbucks, a multinational company that

takes pride in being the top specialty coffee retailer in the world altouh they may be

facing many controveries at this moment. With a strong international presence, Tim

Hortons is the best restaurant brand in Canada. People above the age of sixteen drank

more coffee drinks than tap water. Although they are not limited to that, those who

appreciate coffee and baked goods are their main target market. In order to successfully

compete, Tim's also offers a wide range of eating options, and they are always adding

new items to their menu. From time to time they expand their menus so that their
competitors don’t get ahead. A good example would be when they included chicken

sandwiches after Popeyes introduced its well-known sandwich line in 2019. International

customers feel as though they are experiencing Canadian values when they buy Tim

Hortons in their native countries, which contributes to their global success. The majority

of Tim Hortons' devoted customers are Canadians, due to the fact that 77% of them visit

4 times a month.

Business structure:

Tim Hortons has a very simple organizational structure: a general manager, an assistant

manager, and staff members work at each store. Even though it is a division of

Restaurant Brands International (RBI), Tim Hortons operates independently. José Cil is

the CEO of RBI, Alex Behring is the Chairman, and Axel Schwan is the President of Tim

Hortons in Canada, the US, and Latin America. The general manager's role appears to

be monitoring the site's performance and making any adjustments. They have a duty to

notify corporate headquarters and get orders for operations. Some general managers

are in charge of several locations. Assistant Managers are accountable to the General

Manager and must follow their instructions. They deal with employees directly and are

expected to handle any small problems. Workers eventually voiced their opinions to the

Assistant Manager, and switch commanders may be appointed by company branches.

They deal directly with all of the company's clients as its front-line employees; some

could even go so far as to call them the brand's shining star, or brand ambassadors.
Over 5,000 workers are employed by Tim Hortons in Canada, and their compensation is

based on their aptitude, experience, and length of service. Professional jobs typically

start at the basic wage, which in Ontario is $14.25 per hour; shift supervisors, on the

other hand, may get paid more based on their years of experience. While general

managers can make up to $30 per hour, assistant managers in Ontario make an average

of $16.82 per hour. Tim Hortons has consistently been a pioneering company. Tim

Hortons achieved outstanding annual sales and profits prior to being acquired by

Restaurant Brands International. Their total income in Canadian dollars from 2011 to

2013 was 2536.49, 2852.97, 31020.50, and 3255.53. The total gross profit in millions of

Canadian dollars from 2011 to 2013 was 230.31, 240.76, 263.45, and 1119.83. Year

after year, their earnings and revenue increased, reaching a peak in 2013. Their

earnings are increasing as a result of their global expansion. Tim Hortons supplied

more than half of Restaurant Brands International's total sales in the 2019 fiscal year.

The COVID issue caused revenue drops in 2020, but the industry made up ground and

meet its targets by the start of 2023. Also Tim's has demonstrated a strong commitment

to humanity in addition to its commercial objectives. Tim's team responsible for

overseeing operations is involved in several CSR initiatives. One of Tim's many

initiatives, the Children's Foundation, allows kids to go camping while imparting values

like motivation and responsibility. For young people who might not have good and safe

circumstances, this is a fantastic opportunity to meet new people and have new

experiences. In addition, about 30,000 children in the US and Canada can play a range
of sports like hocket, soccer, softball, baseball, ringette, and many more thanks to the

Timbits Minor Sports program.

Problem Identification:

Covid-19 caused significant losses for the service sector, including Tim Horton's.

Site selection was one of the main challenges Tim Hortons faced during the pandemic.

Since some locations might not be appropriate for a drive-thru and take-out model, site

selection became crucial. The company had to modify its site selection criteria in

response to the strategy shifts, giving priority to locations that could support drive-thru

services and increased delivery traffic. In order to give customers a secure and effective

drive-thru experience, Tim Hortons had to find new locations and assess the ones that

already existed. Another significant problem Tim Hortons has encountered in COVID-19

is capacity planning. Due to the closures, the company's sole options were drive-thru,

delivery, and mobile ordering, which increased demand and caused traffic in some

areas. There are now lengthy wait times and, in certain situations, fewer products

available due to the increased demand. The additional safety precautions that have

been put in place, like more frequent cleaning and sanitization, have made managing

operations more difficult. In order to protect the well-being of both its workers and

patrons, the company has had to modify its operations. This has involved instituting

improved cleaning protocols, supplying personal protective equipment, and installing

plexiglass barriers at the drive-thru windows. Concerns about employee motivation have

arisen because some workers might be reluctant to work because of the risk of

receiving the sickness.

Buisness response:

Tim Hortons acted swiftly to protect and assist candidates, guests, and the public

in addition to adhering to the new COVID-19 regulations. During the temporary closure

of Ontario's restaurant industry, these businesses sponsored their smartphone

application, which allowed customers to place online orders for delivery or curbside

pickup. When the industry reopened, these businesses carried on with their efforts,

adjusting their dining areas to comply with social distance regulations. People

congregate at Tim Hortons restaurants from all over the country. Being the largest

restaurant chain in Canada, they have an obligation to protect their patrons during this

trying time in addition to providing for their needs. To combat this, they even threw in a

face mask for protection. After that In order to protect the stakeholders, they then

installed acrylic protection shields at the drive-thru and frontline managers. In addition,

Tim Hortons has postponed its cup giveaway, which was scheduled to distribute

approximately ten million recyclable cups as part of a sustainability initiative. Because

these cups can be toxic, Tims was wise enough to delay distribution until COVID-19

cases could be controlled.

Recommendation:

Tim Hortons should make technological investments to boost operational

effectiveness and guarantee the success of their operational procedures. Self-order

kiosks, which would shorten wait times and let customers customize their orders, are
one way to achieve this. Some of Timmy’s rivals, including McDonald's, have adopted

this technology since it has been demonstrated to increase worker productivity and

customer satisfaction. They should also start to concentrate on enhancing worker

motivation’s by introducing a rewards and training program. Employees who go above

and beyond the normal standarts for example, by offering superior customer service or

making recommendations for process improvements should be honoured and rewarded

through these programs. They’ll be able to lower employee turnover rates and boost

employee motivation by praising and rewarding exceptional work. In order to stay

competitive in the eyes of customers, Tim's should give priority to its CSR initiatives.

They could start a sustainability program that lessens their environmental impact as one

CSR project. Initiatives like recycling programs or the use of environmentally friendly

materials in packaging could fall under this category. Tim Hortons would gain favour

with environmentally sensitive customers and enhance their brand by doing this. For

ideas on CSR projects, they should consult their rivals. Timmy’s might maintain its

competitiveness and enhance its reputation by implementing similar initiatives. To

remain competitive in the eyes of customers, they should keep concentrating on CSR

initiatives like sustainability and community support.

Conclusion

In conclusion, there aren't many changes I would make to Tim Hortons. Since they are

thriving despite the pandemic. The only thing that I think they should change is pay

rate; even though this will reduce profitability, it will be a great way to let their
employees know that they value them and should help them through these hard times.

Starting salaries should be at least $15 per hour. Even though it's only a quarter of a

cent, full-time workers find that it makes a big difference. The increase in pay helps the

workers get through this difficult time. Additionally, this is done to support them

financially and to show that we appreciate their hard work. Since, as everyone knows,

epidemics don't cause expenses to stop. Though the main objective of any long-term

business is to maximize profits. But given the current state of COVID, social

responsibility ought to take precedence over profit maximization since customers are

the lifeblood of any business, and how can one survive if its clients are ill? Thus, despite

lower sales than before COVID, Tim's has made significant contributions to society,

which is far more significant than

References:

Tim Hortons. (2021). Tim Hortons. https://www.timhortons.com/franchising

Tim Horton’s Launches New Beyond Meat Burgers in Brampton (2019). Retrieved from

https://quickbitenews.com/article/brampton/tim-hortons-launches-new-beyond-meat-

burgers-in-brampton/

Etienne Musonera Merger of Burger King and Tim Hortons: analysis of marketing

strategies in the quick service restaurants. (September 2019)

https://doi.org/10.1504/IJSBA.2019.102650

Michael Lewis Tim Hortons uniform may soon include masks, as drive-thrus and dining

rooms get a pandemic makeover (2020, May) Retrieved from Tim Hortons uniform may
soon include masks, as drive-thrus and dining rooms get a pandemic makeover | The

Star

Tim Hortons Launches Mobile Order Curbside Pickup Due to COVID-19 (2020, April)

Retrieved from https://www.iphoneincanada.ca/news/tim-hortons-mobile-order-curbside-

covid19/

TIM HORTONS INC. ANNOUNCES CHANGES TO STRENGTHEN AND STREAMLINE

EXECUTIVE MANAGEMENT STRUCTURE. (2008,April)

https://company.timhortons.ca/ca/en/corporate/news-release.php?id=7559