Tim Horton's Strategy

Tim Horton's Strategy

A Strategic Analysis for Tim Hortons
Presently, Tim Hortons is regarded as the leading publicly traded restaurant chain in Canada. Not only is it Canada's leading quick-service restaurant brand but also the fourth largest publicly traded restaurant chain in North America based on market capitalization. They have the number one market share in breakfast and snacking day parts and a solid number two share in the lunch day part in Canada (1). However, Tim Hortons needs to pay more attention towards their growth and development into U.S. and other markets worldwide in order to become a true spearhead in their industry. Moreover, they can lessen the risks related with expansion by engaging in partnerships with other successful firms.
Analysis/Rationale
Although, as mentioned above, Tim Hortons is possibly the leading publicly traded restaurant chain in Canada, it enjoys its success due to its inhabitation of a much smaller market in comparison to markets in U.S., India, and China. To be the best of the lot, Tim Hortons cannot exclusively depend on a single market. In this day and age, there are solid opportunities for them to become the world’s best, through new emerging markets with high probability for huge profits. There are increasing trends of coffee drinkers in China and India, two countries with enormous fondness for Western style drinks and meals and Tim Horton's expansion in those countries will play to their advantage. That is the main reason why McDonalds, the equivalent quick service restaurant industry to Tim Hortons, is earning massive profits from both China and India. Entering into partnerships also ensures that the firms are able to share the risks of failure; thereby reducing their burden. Thus, the partnership of Tim Hortons with Kahala Corp is a great idea, since it links together both Tim Hortons and the Cold Stone Creamery concepts stores in U.S. In this situation, with the benefit of sharing risks of failure; in Kahala Corp, Tim Hortons have a...

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