Tim Hortons: Wikis

  
  

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Tim Hortons Inc.
Type Public (TSXTHI, NYSETHI)
Founded Hamilton, Ontario (1964)
Headquarters Oakville, Ontario
Key people Paul D. House, (Executive Chairman) , Don Schroeder, CEO, and President, and Director (as of March 1st 2008)
Tim Horton and Ron Joyce, co-founders
Industry Restaurants[1]
Products Coffee
Doughnuts
Timbits
Bagels
Muffin
Soups
Sandwiches
Iced Cappuccinos
Croissants
Cookies
Revenue Green Arrow Up.svg $2.044 billion CAD (2008)[2]
Net income Green Arrow Up.svg $285 million CAD (2008)[2]
Employees 100,000 (2008)
Website TimHortons.com

Tim Hortons Inc. is a Canadian coffee shop known for its coffee and doughnuts. It was founded in 1964 in Hamilton, Ontario by Canadian hockey player Tim Horton and Jim Charade, after an initial venture in hamburger restaurants.[3][4] In 1967 Horton partnered with investor Ron Joyce, who quickly took over operations after Tim Horton died in a car crash in 1974, and expanded the chain into a multi-million dollar franchise. Jim Charade left the organization in 1966 and briefly returned in 1970 and 1993 through 1996.

Tim Hortons franchises spread rapidly and eventually overtook McDonald's as Canada's largest food service operator. The company opened twice as many Canadian outlets as McDonald's[5] and system-wide sales also surpassed those of McDonald's Canadian operations as of 2002.[6] The chain accounted for 22.6% of all fast food industry revenues in Canada in 2005.[5] Tim Hortons commands 76% of the Canadian market for baked goods (based on the number of customers served) and holds 62% of the Canadian coffee market (compared to Starbucks, in the number two position, at 7%).[7]

As of September 27, 2009, Tim Hortons has 3,527 systemwide restaurants, including 2,971 in Canada and 556 in the United States.[8]

Tim Hortons has an international presence including outlets in the United States, including one opened in Detroit and owned by former NBA player Derrick Coleman and one on a military base outside Kandahar, Afghanistan.[9][10][11] Two more outlets are located in military bases at Fort Knox, Kentucky[12] and Naval Station Norfolk, Virginia.[13] Tim Hortons' other international expansions include a small outlet at the Dublin Zoo. Tim Hortons also made a deal with the SPAR convenience store chain in the UK and Ireland, resulting in Tim Hortons coffee and doughnuts being sold at small self service counters in 50 SPAR stores as of April 30, 2007.[14]

Contents

History

Tim Horton and Ron Joyce

Tim Hortons logo as used in the mid-1990s, and still the chain's most common outdoor sign.
A common road sign bearing the logo above
A Tim Hortons in South Portland, Maine
A Tim Hortons in Calgary, Alberta
A Tim Hortons sign in Columbus, Ohio
A Tim Hortons cup in Lambertville, Michigan store.

The chain's first store opened in 1964 in Hamilton, Ontario under the name "Tim Horton Donuts" (the name later being abbreviated to "Tim Horton's", and later still changed to "Tim Hortons" without the possessive apostrophe). The business was founded by Tim Horton, who played in the National Hockey League from 1949 until his death in a car accident in 1974.[15]

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 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 geography and in product selection, opening the 500th store in 1991.[16]

Ron Joyce's aggressive expansion of the Tim Hortons business resulted in one major change in the coffee and doughnut restaurant market: Canada's per-capita ratio of doughnut shops surpassed those of all other countries.[17]

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.[16]

Some older locations retain signage with the company's name including a possessive apostrophe, despite the fact that the official styling of the company's name has been Tim Hortons, without an apostrophe, for at least a decade.[18] The company had removed the apostrophe after signs using the apostrophe were considered to be breaking the language sign laws of the Province of Quebec. The removal of the apostrophe allowed the company to have one common sign image across Canada.

Merger with Wendy's

A Tim Hortons/Wendy's sign in Milton, Ontario

In 1992, the owner of all Tim Hortons and Wendy's Restaurants in Prince Edward Island, Daniel P. Murphy, decided to open new franchise outlets for both brands in the same building in the town of Montague. Murphy invited Joyce and Wendy's chairman Dave Thomas to the grand opening of the "combo store", where the two executives met for the first time and immediately established a rapport.

Murphy's success with combining coffee and doughnuts with Wendy's fast food led to the August 8, 1995, acquisition of and merger with TDL Group by Wendy's International, Inc., an American company.[19] Joyce became the largest shareholder in Wendy's, even surpassing Thomas. TDL Group continued to operate as a separate subsidiary from its head office in Oakville, Ontario, although Joyce eventually retired from active management to pursue other interests.

Under pressure from rival restaurateur Nelson Peltz, in late 2005, Wendy's announced it would sell between 15% and 18% of the Tim Hortons operations in an initial public offering, which was completed on March 24, 2006, and subsequently said it would spin off to shareholders its remaining interest by the end of 2006.[20] Wendy's cited increased competition between the two chains and Tim Hortons' increasing self-sufficiency as reasons for its decision, but the company had been under shareholder pressure to make such a move because of the strength and profitability of the Tim Hortons brand.[21] It should be noted, however, that Peltz in 2008 acquired Wendy's after pressuring them initially to spin off Tim Hortons.

Shares of the company began trading on March 24, 2006, with an initial public offering of C$27 per share, raising over $700 million in the first day of trading. On September 28, 2006, Wendy's spun off the rest of its shares in Tim Hortons, by distributing the remaining 82% to its shareholders.[22] On the same day, Tim Hortons was added to Canada's benchmark stock-market indicator, the S&P/TSX Composite Index, and to the S&P/TSX 60.[23]

Despite maintaining its operational headquarters in Oakville, the spun-off holding company was initially incorporated in Delaware, under the T.H.D. Donut (Delaware), Inc..

Repatriation

On June 29, 2009, Tim Hortons Inc. announced that, pending shareholder approval (expected in September), the chain's operations would be reorganized under a new publicly-traded company, also named "Tim Hortons Inc.", incorporated under the Canada Business Corporations Act. The change is being made primarily for tax purposes.[24][25]

On September 28, 2009, Tim Hortons Inc. announced it had completed the reorganization of its corporate structure to become a Canadian public company.[26]

Expansion

TDL Group recorded $1.48 billion in sales in 2005.[27] and has expanded across Canada into small and large markets, as well as into the US states of Connecticut, Indiana, Kentucky, Maine, Massachusetts, Michigan, New York, Ohio, Pennsylvania, Rhode Island, and West Virginia. In 2008, Tim Hortons INC. recorded its total revenues at $2.04 billion (CDN).[28]

Initially, the US stores were the result of natural expansion into Canadian border areas (i.e. stores in Maine and the Buffalo, New York area where Horton played from 1972 to 1974 as a member of the Buffalo Sabres). Starting in the mid-1990s, however, the chain began expanding in the US by acquiring former locations from fast food chains. Between 1996 and 1997, thirty-seven former Rax Restaurants locations in Ohio, Kentucky, and West Virginia were bought by Wendy's International Inc.. 30 of these were to be converted to Tim Hortons, while the other 7 were to become Wendy's franchise locations. Thirty-five former Hardee's stores in the Detroit, Michigan area were also purchased with the intentions of being converted.[29] By 2004, the chain had also acquired 42 Bess Eaton coffee and doughnut restaurants situated in Rhode Island, Connecticut, and Massachusetts. Several combination Wendy's/Tim Hortons units have also been opened throughout the United States, both in the "traditional" markets of Buffalo and Maine, and in the markets entered through acquisition.

Tim Hortons was originally concentrated in Ontario and Atlantic Canada. In recent years, however, the chain has greatly expanded its presence in Quebec and western Canada.[30]

Tim Hortons' products have become available in Ireland and Scotland at some SPAR convenience stores[31] and Tesco supermarkets.[32] The first expansion into Indiana was announced with the planned opening of a location in Richmond, Indiana's southwest side.[33]

In October 2008, Tim Hortons announced a plan to add 82 locations in Tops Markets stores.[34]

On July 13, 2009, Tim Hortons opened stores in New York City at former Dunkin Donuts locations operated by the Riese Organization. One of the stores is located at Madison Square Garden, where Horton played as a member of the New York Rangers from 1969 to 1971.[35]

Tim Hortons continued its southward expansion by opening a restaurant at Naval Station Norfolk, Norfolk, Virginia; in mid-December 2009.

In March 2010, Tim Hortons announced a further expansion on both sides of the US/Canadian border to be completed by 2013.[36][37] The plan calls for:

  • 600 new stores in Canada (primarily in Quebec and Western Canada but also including smaller communities) and 300 new stores in the U.S. (primarily in its existing markets of Michigan, New York, and Ohio).
  • Expanding into such non-standard store locations as hospitals, universities, and airports.
  • Extend its co-branding initiative with U.S. ice cream chain Cold Stone Creamery, which began in 2009, to cover 60 Canadian stores and 25-35 new and existing U.S. stores.
  • Test a new cafe/bake shop concept in at least 10 existing U.S. locations, including "enhanced finishes, fixtures and seating areas" as well as an expansion of menu offerings.

Partnership with Tim Hortons

The parent company of Cold Stone Creamery, Kahala Group, announced in February 2009 that it had reached an agreement with Tim Hortons to open up to 100 co-branded stores in the United States after successfully testing two locations in Rhode Island.[38] The most notable co-branded store opened in August 2009 when Tim Hortons moved into three Coldstone Creamery locations in New York City, including its flagship Times Square location.

In June 2009, Cold Stone Creamery started testing the Canadian market by opening its six co-branded locations with Tim Hortons located in Toronto, Oakville, Mississauga, Hamilton and Pickering.[39] As of December 2009, Cold Stone Creamery has been expanding its test markets in Canada. There are now four locations in Calgary, Alberta, three stores in Nova Scotia, and five stores in Ontario.

Tim Hortons and the Canadian military

Tim Hortons has many outlets located on or near many Canadian Forces Bases. TDL Group announced in March 2006, in response to a request by Chief of the Defence Staff, General Rick Hillier, its commitment to open a franchised location at the Canadian Forces operations base in Kandahar, Afghanistan. The new Kandahar location opened on June 29, 2006, in a 40-foot (12 m) trailer on the military base.[40] The 41 staff members of the Kandahar outlet have been drawn from the Canadian Forces Personnel Support Agency who received training on such matters as how to handle a potential nuclear or biological attack before working at the military base.[41] The Canadian Federal government subsidizes the operation of the Kandahar outlet in the order of CAD$4–5 million per year.[42]

Growth of the Tim Hortons Chain

Tim Hortons milestones[43]
Store # Location Date Note
1 Hamilton, Ontario May 1964
100 Thunder Bay, Ontario December 1978
200 Hamilton, Ontario December 1984
300 Calgary, Alberta February 1987
400 Halifax, Nova Scotia February 1989
500 Aylmer, Quebec January 1991
700 Moncton, New Brunswick October 1993
1000 Ancaster, Ontario August 1995
1500 Pickerington, Ohio March 1997 also Wendy's 5000th store
100 in US Columbus, Ohio July 31, 1998
2000 Toronto, Ontario December 2000
2500 Cayuga, Ontario September 2003
3000 Orchard Park, New York December 14, 2006 [3]
500 in US Detroit, Michigan 2008

Menu

A drive thru only Tim Hortons location in Moncton, New Brunswick

Tim Hortons' first stores only offered two products – coffee and doughnuts.[3] Aside from its coffee, tea, hot chocolate, and doughnuts, the Tim Hortons menu now contains a number of other baked goods, such as Timbits (miniature balls of doughnut dough), muffins, croissants, tea biscuits, cookies, rolls, danishes, and more recently bagels – of which Tim Hortons sells one out of every two in the Canadian foodservice industry.[44] Take-home cakes are offered in some locations.

Since the mid-1990s, the chain has moved into other areas, including speciality and premium items such as flavoured cappuccino, iced cappuccino, iced coffee, New York-style cheesecake, and a lunch selection that includes soups, chili, and submarine-style sandwiches. In fall 2006, Tim Hortons began rolling out a breakfast sandwich. The sandwich consists of an egg patty, processed cheese slice, either bacon or sausage as the topper, and is placed on either a biscuit or bagel to wrap it up.[45] In October 2007, Tim Hortons launched the Chicken Fajita Wrap, which contains spiced chicken and sautéed vegetables, but was soon discontinued, replaced a year later with the Barbecue and Ranch Chicken Wrap Snackers. As of late December 2007, they introduced the new Hash Browns and the Bagel B.E.L.T., a breakfast sandwich that also includes lettuce and tomato.

Coupled with the aggressive expansion and expanded menu came the outsourcing of baked goods. Doughnuts, which used to be made at night in order to be ready for the morning rush, are now fully cooked and then frozen and delivered to every restaurant in Canada from Brantford, Ontario.[30] Each restaurant bakes and finishes the product throughout the day. As of April 2007, many of the various muffin batters are being revoked, as frozen, pre-made and pre-wrapped muffins are being introduced to all bakers at Tim Horton locations.[46]

Originally featuring Pepsi products via fountain machines, Tim Hortons made the change in the mid-1990s to Coca-Cola products in bottle-only form. Tim Hortons switched back to Pepsi in 2007, but continued to market only bottled and canned Pepsi products.

On February 10, 2009, Tim Hortons announced they will be co-branding with another popular American ice cream parlor Cold Stone Creamery. The deal calls for each chain to convert 50 stores into dual-operation franchises, for a total of 100 stores. The idea was successfully tested at two stores in Rhode Island.[47][48][49][50]

Despite this expansion in their offerings, Tim Hortons is still heavily dependent on coffee sales. In 2009 it was reported that 60 percent of their sales occur in the morning, and of that more than 50% is coffee.[51] The coffee served is a blend of 100% Arabica beans and in regards to the serving of coffee the chain has an "always fresh" policy where coffee is served within 20 minutes of brewing or not at all.[30]

Nutritional information on most Tim Hortons menu items is made available by the company in a two-page brochure and is available online.[52]

Marketing

Advertising and promotion

A Tim Hortons shop in Ottawa, Ontario
Tim Hortons advertising on the field at BC Place during the 2005 Grey Cup game

Tim Hortons has one of the most successful marketing operations in Canada, approaching the level of a symbol of national identity. With powerful and effective branding, the store has established itself in the top class of fast-food restaurants in Canada. Canadian Business magazine has twice named Tim Hortons as the best-managed brand in Canada (in 2004 and 2005).[53][54][55][56]

Tim Hortons commercials appear frequently on Canadian television and radio stations, as well as on billboards. Many Canadian NHL rinks have Tim Hortons ads along their boards, as well as the Nationwide Arena in Columbus, Ohio, the HSBC Arena in Buffalo, New York, and the Joe Louis Arena in Detroit, Michigan, the three areas in the US where the chain has its most active operations.[citation needed] Since 2005, Tim Hortons has also been the title sponsor of the Brier, the annual Canadian men's curling championships, along with the Canadian Ringette Championships.[57] Generally the chain promotes one or two "featured" products every month,[citation needed] such as iced cappuccinos and various cookies or donuts during the summer, lunch products such as soup or sandwiches during the winter, and its flagship coffee promotion Roll Up The Rim to Win during the early spring. Shortly before December 2007, they discontinued their gift certificates, and replaced them with the Quickpay Tim Card,[58] with the Christmas slogan "Because it's hard to wrap a double double" (coffee with two sugars and two cream). Many locations still accept gift certificates, however.

Tim Hortons' advertising slogans have included "You've Always Got Time for Tim Hortons" and, more recently, "Always Fresh. Always Tim Hortons".

In June 2009 Tim Hortons USA created a Twitter and Facebook page to drive online traffic.[59][60]

Roll Up the Rim to Win

A winning Roll Up the Rim to Win Cup
A losing cup.

Each March, Tim Hortons holds a very large marketing campaign called Roll Up The Rim to Win. Over thirty one million prizes are distributed each year,[61] including vehicles, televisions, and store products. Customers determine if they have won prizes by unrolling the rim on their paper cup when they have finished their drink, revealing their luck underneath.

The Roll Up the Rim campaign was first held in 1986[30] and has grown to become a highly anticipated event for Tim Hortons customers. In 2008, over 88% of major prizes were redeemed.[62]

The ubiquitous Tim Hortons ads on the boards of hockey rinks change from the normal "Tim Hortons" signage to a "Rrroll up the Rim" display; the timing of the promotion also is key because it is during the height of the NHL season, ensuring that viewers across North America will see the ads.[citation needed] Television and other media are inundated with advertisements that repeat the "R-r-roll up the R-r-im to Win" slogan and encourage the recitation of the phrase using rolled R's to match the announcer's delivery.[citation needed]

The contest is so popular that someone has invented the Rimroller (as seen on Dragon's Den), a device for rolling up the rim mechanically.[63]

Prizes are not distributed randomly country-wide; each of the company's distribution regions has distinct prize-winning odds.[64]

In March 2006, two families were fighting over the Toyota RAV4 SUV prize of C$32,000 value after their daughters found a winning "roll up the rim" coffee cup in a garbage bin of an elementary school in Saint-Jérôme, north of Montreal. The younger girl had found a cup in the garbage bin and could not roll up the rim, so requested the help of an older girl. Once the winning cup was revealed, the older girl's family stated that they deserved the prize. Tim Hortons originally stated that they would not intervene in the dispute. A further complication arose when Quebec lawyer Claude Archambault requested a DNA test be done on the cup. He claimed that his unnamed client had thrown out the cup and was the rightful recipient of the prize. On April 19, 2006, Tim Hortons announced that they had decided to award the prize to the parents of the girl who had initially discovered the cup.[63]

Community

The store also promotes itself through community support and the "Tim Horton Children's Foundation." Founded by Ron Joyce, the Foundation sponsors many thousands of underprivileged children from Canada and the United States to go to one of six high-class summer camps located in Parry Sound, ON; Tatamagouche, NS; Kananaskis, AB; Quyon, QC; Campbellsville, KY; and St. George, ON.[65]

The foundation's highest-profile fundraiser is Camp Day, which is held annually on the Wednesday of the first full week in June. All proceeds from coffee sales at most Tim Hortons locations, as well as proceeds from related activities held that day, are donated to the foundation. Small stores located in Esso Service Stations do not donate coffee proceeds on Camp Day.[66]

A Timbits hockey player, from Niagara Falls

Mr. Joyce's dedication and commitment to the Tim Horton Children's Foundation earned him the Gary Wright Humanitarian Award in 1991, presented periodically in recognition of the outstanding contributions to the betterment of community life throughout Canada.[67] In recognition primarily for his work with the Foundation, he received an appointment to the Order of Canada, with the official presentation taking place on October 21, 1992, in Ottawa.[67]

Tim Hortons also sponsors the Timbits Minor Sports Program, a community program for local sports teams involving children aged four to eight years. The program places an emphasis on learning the sport and building friendships among the participants, as reflected in the program's advertising tagline—"The First Goal is Having Fun." One of the most well-known participents in this program is Sidney Crosby, who got his start playing organized hockey in the timbits hockey program.[citation needed] Tim Hortons also sponsors many other community outreach programs including Free Skating, Free Swimming, Earn-a-Bike Program, Remembrance Day, Food Drives, the Smile Cookie program, as well as a community clean-up project.[68]

A Canadian cultural fixture

The ubiquity of Tim Hortons, through both effective marketing and the wide expansion of its outlets, makes it a prominent feature of Canadian life. Tim Hortons' prevalence in the coffee and doughnut market has led to its branding as a Canadian cultural icon and the media routinely refer to its iconic status, although this is a relatively recent development, tied to the chain's tremendous expansion in the late 1990s and 2000s.[54][55][69][70][71][72] A series of Tim's television commercials promotes this idea by showing vignettes of Canadians abroad and their homesickness for Tim Hortons.

A smaller Tim Hortons location, with a focus on drive-through

Noted Canadian author Pierre Berton once wrote: "In so many ways the story of Tim Hortons is the essential Canadian story. It is a story of success and tragedy, of big dreams and small towns, of old-fashioned values and tough-fisted business, of hard work and of hockey."[54]

Some commentators have bemoaned the rise of Tim Hortons as a national symbol. Rudyard Griffiths, director of The Dominion Institute, wrote in the Toronto Star in July 2006 that the ascension of the chain to the status of cultural icon was a "worrying sign" for Canadian nationalism, adding: "Surely Canada can come up with a better moniker than the Timbit Nation."[73]

Controversies

After Tim Hortons had agreed to provide 250 cups of free coffee for a "Marriage and Family Day" hosted by the National Organization for Marriage, the company removed its sponsorship after it was revealed that the NOM was an organization that campaigns against gay marriage.[74] The company stated the sponsorship was a violation of the company's policy not to sponsor events "representing religious groups, political affiliates or lobby groups."[74][75] The event's organizer, Christopher Plante, said the deal was approved by state-wide or regional (representative), not a local franchise.[76]

Criticism

David Swick reported in the Halifax Daily News on September 19, 2003, that Tim Hortons donuts were to be remotely factory-fried and shipped, frozen, to Tim Hortons outlets in Atlantic Canada, where they would then be reheated at the push of a button.[77]

In September 2006, Tim Hortons courted controversy by mandating that employees were not to wear red as part of the Red Fridays campaign by families of the military to show support for Canadian troops. Within a few hours, Tim Hortons partially reversed its position and has allowed staff in Ontario stores to wear red ribbons or pins to show support for the wear red on Fridays campaign.[78]

Fast food packaging litter, though not limited to solely to Tim Hortons, appears to be a problem wherever a franchise is opened up. Disposable cups produced by the company are one of the most common litter items in Canada. Company spokespersons claim that irresponsible customers are the problem, not Tim Hortons. Yet their cups show up as litter in direct proportion to the number of Tim Hortons outlets nearby.[79]

"Tim Hortons does not sell organic coffee, does not sell Fair trade coffee, and does not disclose the source of its green beans" as quoted from weblog Coffee and Conversation.[80] As of 2007, Tim Hortons website said that they decided against using Fair Trade coffee.[81] Instead they created a program called the Sustainable Coffee Program; the first program was launched in Guatemala and in 2006 they started programs in Colombia and Brazil[82] where they are "directly involved with coffee producing communities by providing direct financial assistance for technical training to improve the quantity and quality of coffee produced and assist farmers in getting their coffee to market at the best time and for the best price. Assistance is also provided on environmental management, in both proper farming techniques and reforestation projects, led by Tim Hortons." In addition, Tim Hortons supported schools and sponsored medical clinics in Guatemala. The annual report mentions this program but does not specify whether the beans they purchase are sourced from this program. The report only mentions "multiple suppliers of coffee".[83]

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  41. ^ "Hopefuls for Tim Hortons Kandahar outlet get survival training". Yahoo News. 5 May 2006. Archived from the original on 2006-06-27. http://web.archive.org/web/20060627224847/http://ca.news.yahoo.com/cbc/s/05052006/3/ottawa-hopefuls-tim-hortons-kandahar-outlet-survival-training.html. 
  42. ^ "Ottawa foots bill for Afghan Tim Hortons: Canadian taxpayer foots nearly $4-million bill". Canada.com. 2006. http://www.canada.com/globaltv/national/story.html?id=886b7564-148b-4414-b9b2-74d625bef02alink. 
  43. ^ "Company Facts". Tim Hortons. http://www.timhortons.com/ca/en/about/2908.html. 
  44. ^ Tim Hortons (6 March 2001). "Wendy's International, Inc. and IAWS Group, plc announce strategic alliance". Press release. http://www.timhortons.com/ca/en/about/news_archive_2001f.html. 
  45. ^ Flavelle, Dana (27 September 2006). "Tim's heats up menu wars". Toronto Star. http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1159307412775&call_pageid=968350072197&col=969048863851. Retrieved 2006-09-29. 
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  48. ^ Hilmantel, Robin (February 9, 2009). "Tim Hortons and Cold Stone Will Team Up in 100 Stores". QSR magazine. http://www.qsrmagazine.com/articles/exclusives/0209/timhortons-1.phtml. 
  49. ^ Dentch, Courtney (February 6, 2009). "Tim Hortons, Cold Stone to Form 100 Co-Branded Stores". Bloomberg.com. http://www.bloomberg.com/apps/news?pid=20601082&sid=amENTv5wwAcU&refer=canada. 
  50. ^ Baertlein, Lisa (February 6, 2009). "Tim Hortons, Cold Stone to wed doughnuts, ice cream". Reuters. http://www.reuters.com/article/mergersNews/idUSN0537811820090206. 
  51. ^ Flavelle, Dana (2009-04-21). "McDonald's offers free java in coffee wars". Toronto Star. http://www.thestar.com/business/article/621633. Retrieved 2009-04-21. 
  52. ^ "Nutrition Guide" (PDF). Tim Hortons. http://www.timhortons.com/ca/pdf/nutrition-guide-can.pdf. 
  53. ^ Fineman, Josh; Scanlan, David (23 March 2006). "Tim Hortons Raises C$783 Million in Initial Offering". Bloomberg.com. http://www.bloomberg.com/apps/news?pid=10000103&sid=aVbau_WUTixk. 
  54. ^ a b c "Investing in an icon: Why everyone wants a piece of Tim Hortons". Ottawa Citizen. 19 March 2006. http://www.canada.com/ottawacitizen/news/story.html?id=f695c530-37cd-4b7f-988c-d7c1ab7f964a. 
  55. ^ a b Kidd, Keneth (26 March 2006). "Timbit Nation". Toronto Star. Archived from the original on 2006-06-14. http://web.archive.org/web/20060614182719/http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1143327032563&call_pageid=968332188492. 
  56. ^ "Troops in Kandahar to get a Tim Hortons shop". CTV.ca. 7 March 2006. http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060306/afghan_timhortons_06030y. 
  57. ^ "Season of Champions Sponsors". Canadian Curling Association. http://www.curling.ca/content/InsideTheCCA/socSponsors.asp. Retrieved 18 January 2010. 
  58. ^ "Quickpay Tim Card". Tim Hortons. http://www.timhortons.com/ca/en/timcard/index.html. Retrieved 2010-02-01. 
  59. ^ "Tim Hortons USA". Twitter. http://twitter.com/timhortonsus. 
  60. ^ "Tim Hortons". Facebook. http://www.facebook.com/TimHortons. 
  61. ^ Tim Hortons (26 February 2007). "Rrroll Up The Rim To Win Is Back At Tim Hortons!". Press release. http://www.timhortons.com/ca/en/about/news_archive_2007a.html. Retrieved 2007-03-10. 
  62. ^ "RRRoll Up Fun: Fun Facts". RRRoll up the rim to win!. http://www.rolluptherimtowin.com/en/funfacts.php. 
  63. ^ a b "Finally! A Rimroller!!". Winnipeg Free Press. 11 March 2007. http://www.winnipegfreepress.com/historic/32135644.html. 
  64. ^ "Not all rims rrroll up equally". Canadian Broadcasting Corporation. 15 March 2006. http://www.cbc.ca/canada/story/2006/03/15/timhortons-060315.html. 
  65. ^ "Children's Foundation". Tim Hortons. http://www.timhortons.com/ca/en/goodwill/childrens_about.html. Retrieved 8 December 2009. 
  66. ^ "Camp Day". Tim Hortons. http://www.timhortons.com/ca/en/goodwill/camp_day.html. Retrieved 8 December 2009. 
  67. ^ a b "We Care Awards". Friends of We Care. http://www.friendsofwecare.org/cf/recognition/awards.cfm. Retrieved 8 December 2009. 
  68. ^ "Local Programs". Tim Hortons. http://www.timhortons.com/ca/en/goodwill/local-programs.html. Retrieved 8 December 2009. 
  69. ^ "Tracing the roots of a Canadian icon". The Gazette. 21 March 2006. Archived from the original on 2007-03-13. http://web.archive.org/web/20070313175524/http://www.canada.com/montrealgazette/news/business/story.html?id=42d96107-6b0b-4293-b4f0-020187d1c734. 
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  75. ^ "Tim Hortons responds to inquiries about Rhode Island event sponsorship". Tim Hortons. http://www.timhortons.com/us/en/about/2759.html. 
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External links


Simple English

 

 

 

 

 

 

 
Tim Hortons Inc.


Type Public (Template:TSX, NYSE: THI)
Founded Hamilton, Ontario (1964)
Headquarters Oakville, Ontario
Key people Paul D. House, (Executive Chairman) , Don Schroeder, CEO, and President, and Director (as of March 1st 2008)
Tim Horton and Ron Joyce, co-founders
Industry Restaurants[1]
Products Coffee
Doughnuts
Timbits
Bagels
Muffins
Soups
Sandwiches
Iced cappuccinos
Ice cream
Revenue $1.896 billion CAD (2007)[2]
Net income $270 million CAD (2007)[2]
Employees 100,000 (2008)
Website TimHortons.com


Tim Hortons Inc. is a Canadian fast food restaurant known for its coffee and doughnuts. It was started in 1964 in Hamilton, Ontario by Canadian hockey player Tim Horton.[3] In 1967 Tim Horton joined with investor Ron Joyce, who quickly took over running the company and expanded the chain into a multi-million dollar franchise.

Tim Hortons stores quickly spread and together with Subway, became bigger than McDonald's and is now Canada's largest chain of fast food restaurants. The company opened twice as many Canadian stores as did McDonald's[4] and sales also are bigger than those of McDonald's Canadian restaurants as of 2002.[5] The chain got 22.6% of all fast food industry revenues in Canada in 2005.[4] Tim Hortons also has 76% of the Canadian market for baked goods (based on the number of customers) and has 62% of the Canadian coffee market (compared to Starbucks, who is the second largest with 7%).[6] Tim Hortons had 2,733 restaurants in Canada as of July 1, 2007.

Tim Hortons also has an international restaurants with 500 in the United States as of December 2008, with one opened in Detroit and owned by former NBA player Derrick Coleman and one on a Canadian military base outside Kandahar, Afghanistan.[7][8][9] Tim Hortons' other international efforts include a small outlet at the Dublin Zoo. Tim Hortons also made a deal with the SPAR store chain in the UK and Ireland, with Tim Hortons coffee and doughnuts being sold at small self service counters in 16 SPAR stores.

Contents

History

Tim Horton and Ron Joyce

, Alberta]]

at Tim Hortons]]

The companies first store opened in 1964 in Hamilton, Ontario under the name "Tim Horton Donuts" (the word donut would later be dropped and the company name ended up as just "Tim Horton's", and later was changed to "Tim Hortons" without the apostrophe). The business was started by Tim Horton, who played in the National Hockey League from 1949 until his death in a car accident in 1974.[10]

Soon after Horton opened the store, he met Ron Joyce, a former Hamilton police constable. In 1965, Joyce took over the 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. After Horton's death in 1974, Joyce bought the company from the Horton family and took over as the only owner of the now forty stores. Joyce expanded the chain quickly in geography and in product selection, opening the 500th store in Aylmer, Quebec, in 1991.[11]

Ron Joyce's very fast expansion of the Tim Hortons business brought about two major changes in the coffee and doughnut restaurant market: independent doughnut shops in Canada were almost wiped out, and Canada's per person ratio of doughnut shops rose past those of all other countries.[12]

By the 1990s, the company name had changed to The TDL Group Ltd but the name of the restaurants are still called Tim Hortons. This was because the company wanted to also go into other types of business, and not just be seen as a doughnut company. In March 2006, shares of the company were first sold to the public.[13]

Expansion

]] TDL Group had $1.48 billion in sales in 2005[14] and has expanded across Canada and also in New York, Ohio, Michigan, West Virginia, Kentucky, and Maine.

Tim Hortons and the Canadian military

Tim Hortons has many stores on or near many Canadian Forces Bases. TDL Group said in March 2006, that because they were asked by Chief of the Defence Staff, General Rick Hillier, it would open a store at the Canadian Forces operations base in Kandahar, Afghanistan. The new Kandahar store opened on June 29 2006, in a 40ft trailer on the military base.[15]

Growth of the Tim Hortons Chain

  • Store #1 - Hamilton, Ontario - May 1964
  • Store #100 - Thunder Bay, Ontario - December 1978
  • Store #200 - Hamilton, Ontario - December 1984
  • Store #300 - Calgary, Alberta - February 1987
  • Store #400 - Halifax, Nova Scotia - February 1989
  • Store #500 - Aylmer, Quebec - January 1991
  • Store #700 - Moncton, New Brunswick - October 1993
  • Store #1000 - Ancaster, Ontario - August 1995
  • Store #1500 - Pickerington, Ohio - March 1997 (this was also Wendy's 5000th store)
  • 100th US store – Columbus, Ohio - July 31 1998
  • Store #2000 - Toronto, Ontario - December 2000
  • Store #2500 - Cayuga, Ontario - September 2003
  • Store #3000 - Orchard Park, New York - December 14, 2006[16]

(Source: Tim Hortons Official History[17])

Menu

Tim Hortons' first stores only sold two products - coffee and doughnuts.[3] As well as its coffee, tea, hot chocolate, and doughnuts, the Tim Hortons menu now includes a number of other baked goods, such as Timbits (small balls of doughnut dough), muffins, croissants, tea biscuits, cookies, rolls, danishes, and bagels (which Tim Hortons now sells one out of every two bagels in the whole Canadian food industry).[18] Cakes to take home are offered in some locations.

Since the mid-1990s, the chain has moved into other areas, such as flavoured cappuccino, iced cappuccino, iced coffee, New York-style cheesecake, and lunch items such as soup, chili, and submarine sandwiches. In fall 2006, Tim Hortons began selling a breakfast sandwich. This is made of an egg patty, processed cheese slice, either bacon or sausage, and either a biscuit or bagel, it has sold well.[19] In October 2007 Tim Hortons began to sell a Chicken Fajita Wrap, which has spiced chicken and sautéed vegetables. In December 2007, they began to sell Hash Browns and the Bagel B.E.L.T., (a breakfast sandwich that has lettuce and tomato.

Along with the expansion of stores and the expanded menu came the outsourcing of baked goods. Doughnuts, which used to be made at night so that they were ready for the next morning, are now fully cooked and then frozen and sent to every restaurant from Windsor Ontario. The restaurants now bake them during the day.[20]

The company used to sell Coca-Cola products but Tim Hortons switched over to Pepsi in 2007.

Criticism

Throw away cups made by the company are one of the most common litter items in Canada. Company spokespersons claim that customers are the problem, not Tim Hortons.[21]

In May 2008, the chain came under fire after an employee in London, Ontario was fired for giving away a single $0.16 Timbit to a baby. A manager was blamed for the incident. The employee was hired at a different nearby location.[22]

References

  1. Tim Hortons Fact Sheet
  2. 2.0 2.1 "Company Profile for Tim Hortons Inc (CA;THI)". http://zenobank.com/index.php?symbol=CA;THI&page=quotesearch. Retrieved 2008-10-03. 
  3. 3.0 3.1 "Tim Hortons Official History". http://www.timhortons.com/en/about/index.html. Retrieved 2008-07-12. 
  4. 4.0 4.1 "Wendy's confirms Tim Hortons IPO by March", Ottawa Business Journal, December 1, 2005, [1]
  5. "Marketer of the Year: Down-Home Smarts", Marketing Magazine, February 7, 2005, [2]
  6. "Tim Hortons Raises C$783 Million in Initial Offering", Bloomberg News, March 23, 2006 [3]
  7. Wal-Mart Canada supercenters to have Tim Hortons - Investing Insight - Sympatico / MSN Finance
  8. "Tim Hortons brings a taste of home to troops in Kandahar". Tim Hortons. 2006. http://www.timhortons.com/en/news/news_archive_2006h.html. Retrieved 2007-11-21. 
  9. O'Connor, Elaine (2006-04-12). "Tim Hortons hiring for Afghanistan". The Province. http://www.canada.com/theprovince/news/story.html?id=8f567fe7-fb94-4b91-a261-69b4236c6566. Retrieved 2007-11-21. 
  10. "Tim Horton (1930 - 1974)". http://www.timhortons.com/en/about/bio_timhorton.html. Retrieved 2008-11-25. 
  11. "The Story of Tim Hortons". http://www.timhortons.com/en/about/index.html. Retrieved 2008-11-25. 
  12. "The unofficial national sugary snack", Canadian Broadcasting Corporation, September 1, 1994 [4]
  13. "The Story of Tim Hortons". http://www.timhortons.com/en/about/index.html. Retrieved 2008-11-25. 
  14. "Tim Hortons stock jumps in trading debut", CTV News, March 24, 2006 [5]
  15. "Tim Hortons comes to Kandahar", CBC.ca, June 29, 2006 [6]
  16. Tim Hortons History, 2006
  17. Tim Hortons official History - Growth of Tim Hortons
  18. Tim Hortons - Tim Hortons, and IAWS form joint venture to build bakery facility in Ontario
  19. Tim's heats up menu wars, Dana Flavelle, Toronto Star, September 27, 2006, article accessed September 29, 2006
  20. Maidstone Bakeries joint venture
  21. Danylo Hawaleshka. What to do about all those Tim Hortons containers littering the countryside? Oct. 21, 2005. Maclean's Magazine. [7]
  22. Employee fired over free Timbit getting job back, May 8, 2008 CTV News

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