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4202 E. Fowler AvenueTampa, Florida 33620
C o n s u l t i n g , I N C
Kaleena Burns, Consultant Danielle Kushner, Consultant
Andrew Halsema, Consultant William Warmke, Consultant
Kymoye Samuel, Consultant Malik Priest, Consultant


Dream Team Consulting, Inc.
Tim Hortons Case Study Brief
March 18, 2014

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Abstract Overview
Tim Hortons is an iconic brand that is heavily integrated as a part of Canadas Culture
(Adduono, pg. 1). Although the franchise officially began in 1964, it started unofficially in 1963
when Tim Horton partnered with Jim Charade, a former jazz drummer from Montreal who
worked for Vachon Bakery (Adduono, 2013). Vachon Bakery was a business located in Quebec,
Canada, that was an established maker of nationally distributed baked goods. Jim Charade was
looking to recover from his failed Your Do-Nut shop and realized he needed a recognizable
brand. Charades solution was to collaborate with Tim Horton, a famous ice hockey star, who
also was interested in the business.
Tim Hortons took the necessary steps that they believed would export the brand
globally. Tim Hortons was able to rival the big three in the quick service restaurant industry by
finding a sleeper niche of selling coffee and doughnuts to consumers (Adduono, 2013). By
being a dependable name, they were able to use that to their advantage when they expanded
their food selection to having a main-meal selection. This move allowed their brand to expand
into a bigger industry, while still supporting the needs of their customers. Together, they began
to franchise their brand. Tim Hortons and McDonalds have the lowest-among-the-industry
failure rates at less than 1%, benefitting franchisees and franchisor alike.
In theory, the success that Tim Hortons obtained should enable them to export globally.
Their current strategy has obtainable goals that allow the company to be easily replicated and
reproduced. However, over the past decade, Tim Hortons has become better known for simply
monitoring its current stock, and only adding similar products to its competitors. This makes
them more of a follower than a leader in the corporate world. Following in the footsteps of some
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of its biggest competitors, such as Dunkin Donuts which partnered with Baskin-Robbins, Tim
Hortons partnered with Coldstone Creamery (Adduono, 2013). Entering into co-branding with
another ice cream company may not be enough, though. Tim Hortons entry in the competitive
U.S. market has not been error-free.
Public Shortcomings
Tim Hortons is struggling in developing its name globally, specifically in the United
States. The name of the franchise was chosen for a clear reason, as it is named after Tim
Horton, a timely hockey celebrity in Canada. However, if the blind consumer had to guess what
a restaurant named Tim Horton sold, they would suggest diner-style breakfast food, similar to a
Bob Evans. The name Tim gives off a classic feel that can be welcoming to customers.
McDonalds is iconic around the world, and many Generation Y or Millennial (born early
1980s- early 2000s) and Generation Z (born 2000-present) consumers recognize the
McDonalds branding wherever they go. McDonalds has established so well enough globally,
that the food and atmosphere are clearly understood. Another example where this can be found
is with the fast food chain Wendys, which uses the image of a girl to identify with the fact that
there is a Wendy.
Upon looking at the Tim Hortons logo, there was an overall consensus from our team
that it does not give indication to its style, nor is it fairly recognizable; we have a Tim Hortons
less than 30 minutes from our location and none of our team members were able to recall the
business. It was noted in the case study, however, that other names were considered such as
Your Do-Nut, which flopped alongside the failed attempt of serving donuts and coffee with hot
chicken. Upon further insight to the branding of Tim Hortons, we explored the companys
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website. There are two language options on the website English and French. Should this
restaurant look to excel globally, that would have to be a quick change, as the website currently
would not appeal to any consumer of any other tongue.
On another note, this case study portrays the idea that the leaders behind this company
effectively handled crisis communication, which is always a public relations challenge.
Specifically, the case study noted the tragic death of Tim Horton and that he was driving under
the influence. Luckily for the company, this happened before the social media boom where
everyone and anyone would be buzzing about it. We assumed that this story made a news
cycle in a paper for about two weeks. The company could have renamed the restaurant,
similarly to the Livestrong Foundation removing the affiliation to Lance Armstrong, but the
decision was made to stand by the name Tim Hortons.
Now, consumers are very tech-savvy, and it would only take one consumer to Google
biography of Tim Horton, hear of the accident, and create a movement to boycott a restaurant
associated with under the influence driving. This is something that leaders behind the public
relations and communications fields of the company need to be aware of and prepared for. It
would be beneficial for the company to explore new charities that focus around preventing
driving while under the influence as their philanthropy. This way, Tim Hortons can take a
proactive response to addressing a stigma that could be forever associated with the company
because of its name.
To achieve success globally, one PR suggestion would be to re-tell the story of Tim
Horton. They can shape their products around the love of hockey, and appeal to sports-lovers.
You can get a hot coffee almost anywhere, but Tim Horton should be able to stand out as the
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coffee you would you choose at a hockey stadium, the coffee you would pick up before
watching a hockey game with the family. That is small demographic to reach, but capturing
stories of family, love, and perseverance is what would be needed to excel globally. Many
brands collaborate to create buzz, as noted in the case study. We read of Tim Hortons
collaborating with Coldstone Creamery, but questioned how much of a two-way street that was;
We have all been to a Coldstone Creamery and have never drawn connection with it and Tim
Hortons. Overall, Tim Hortons has a story to tell and that story needs to be portrayed and win
over the hearts of consumers, who may simply just choose the fast food chain that is cheapest
or closest to their home.
Suggestions for Strategic Vision Setting
One of the biggest moves Tim Hortons needs to make in order to stand a chance in the
competitive North American market is to figure out a way to truly show how different they are
from their competitors. In order for Tim Hortons to stand out, the company needs to focus on is
what makes them different from other fast food chains. One of the best ways to go about this
would be for Tim Hortons to establish a set of values that can represent what the company
stands for internationally. After an analysis by our consultants, our team would recommend the
following values for consideration: Quality, Value, Cleanliness, Service, Community Leadership,
and Diversity.
Another way for Tim Hortons to remain competitive would be for the company to
establish promotions that incentivize loyal customers. For example, our team would suggest
implementing a sort of happy hour, offering a two-for-one doughnut deal with a purchase of a
coffee during off-peak hours. This would increase business throughout the workday without
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overloading employees during peak-hours. Another promotion we would suggest would be
implementing a Tim Card that would function similarly to Starbucks Gold Card. It would offer
rewards for returning customers while also having the ability to add money to the customers
account for her or his ultimate convenience.
Our team also highly encourages the leadership of Tim Hortons them to implement their
coin boxes at kiosks in the United States as well as Canada since such a significant amount of
Tim Hortons are kiosks. Additionally, through branding and commercials, we would encourage
them to rebrand their Roll Up the Rim to Win campaign. Our consultants suggest a new title of
Whats on your sleeve? to allow for a smoother transition into the consumer culture of the
United States. These commercials tend to focus heavily on only coffee, but we recommend
including more items in promotional materials to showcase the companys diversity and
commitment to customer needs. This way, customers have more reasons to go to a Tim
Hortons because of the variety of products the company offers. With the increase in business
due to rebranding, the company may be able to add additional prizes to their contest promotions
to garner even more attention from the public.
A final recommendation we would implement for Tim Hortons is strategic expansion of
their chain in smaller cities, and to make sure that these locations are easily accessible as
opposed to a kiosk. North Americans are a monochromatic culture. They value their time and
want good products in a short amount of time. Add this and the fact that Tim Hortons fare better
in smaller communities, this could turn into a winning equation for the company. The North-West
Coast is a major market for Starbucks and the North-East Coast is a major market for Dunkin
Doughnuts. Tim Hortons leadership needs to recognize this and capitalize on the opportunity for
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expansion in the mid-west United States, which happen to be big hockey states. Specifically,
our team would recommend expansion in small towns within Minnesota, Wisconsin, Michigan,
Illinois, and Colorado. Additionally, by having Tim Hortons in smaller towns, it may also appear
as more of a mom-and-pop franchise rather than a big business, which would resonate well in
the mid-west states. This strategic implementation could escalate Tim Hortons to where they
want to be on an international scale.
Leadership Theories Examined and Recommended
Transactional leadership seems overly apparent when examining the companys
leadership style thus far. All actions and key events within the company have occurred based off
of one party making an exchange with another party. The company was started based on a
transaction between Jim Charade and Tim Horton in exchange for the famous hockey players
name, and later on the company engages in a mutually beneficial transaction with Coldstone
Creamery. These exchanges have been an instrumental part of Tim Hortons success thus far.
However, for advancing the company forward, our team suggests that Tim Hortons leadership
follow the contingency and situational leadership models.
Under this ideology, leaders are most effective when they adapt their behavior
contingent on situational forces that may be unforeseen (DuBrin, 2013). Tim Hortons isnt the
most innovative fast food company on the map as we mentioned earlier but thats okay. Our
team believes that Tim Hortons can use their natural reactive style to better the company,
advancing well ahead of their competitors. This style of leadership could work for any
organization in the public or private sector. By responding to the individual needs of each
location, Tim Hortons can build a rapport with the locals in their area. For example, some
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pastries that do very well in Canada may not do so well in the United States, so Tim Hortons
could cater their menu to what their consumers want in each demographic.
This theory could prove to be very beneficial for Tim Hortons to align with from a
business standpoint and a personal standpoint. However, there are limitations that our team
wants to make sure the leadership is aware of. Under contingency and situational leadership,
actions are completely reactionary, so focus is placed on fixing problems as opposed to
enhancing current services. This is why our team placed such a heavy emphasis on strategic
goal settings so your company could follow those goals while maintaining a contingency or
situational leadership style. Nonetheless, our team has no doubt that if Tim Hortons were to hire
and follow the advice of Dream Team Consulting, Inc. that this company will be the best of the
best in the quick service restaurant industry.
References
Adduono, Jeremy, and Lailak Sulhi. Tim Hortons in 2013: Can Its Success in Canada Be
Exported Globally? Comp. Sean Derkson and Lindsay Woodruff. Ed. Bryan Poulin. 1-
16. Lakehead University, Canada, Print.
DuBrin, Andrew J. Leadership: Research Findings, Practice, and Skills. Boston: Houghton
Mifflin, 2013. Print.