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Tim Hortons boldly enters specialty coffee market

Tim Hortons A man nearly died at a Tim Horton's drive-thru in Wallaceburg, Ont. Tuesday.
Tim Hortons

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Date: Wednesday Nov. 2, 2011 6:35 PM ET

There's a beverage war percolating at one of Canada's largest quick coffee chains.

Tim Hortons will soon start offering lattes, cappuccinos and other specialty coffee drinks, expanding its brand into an arena dominated by chains such as Starbucks and Second Cup.

Café-mainstays such as espresso shots and fresh-brewed cappuccinos will roll into more than 2,500 locations across Canada, starting as early as next week in Ontario.

It's a significant departure from the basic formula of speedy, no-nonsense java that made Tim Hortons stand out as a franchise.

By expanding its brand into more elaborate drinks, Tim Hortons CEO Paul House said the company aims to give Canadians café-style coffee at value prices.

"Now, anyone can enjoy a delicious latte in one of our thousands of locations, or grab one in a drive through window, any time of day," he said in a news release issued Wednesday.

With drinks starting at $2, Tim Hortons is dangling low-cost alternatives in front of java lovers who willingly shell out twice as much for lattes at Starbucks and Second Cup.

But whether or not consumers will take the bait is yet to be known.

Exclusive-seeming, customizable drinks that offer coffee lovers the feeling of high-class comfort during a frenzied work day is part of the reason Starbucks is so successful, explains Taylor Clark in his book "Starbucked."

Tim Hortons' new specialty coffee line will be something of a litmus test to see if an "everyman's" chain can tap into that success.

Given that eight out of 10 cups of coffee sold in Canada every morning come from Tim Hortons, one research analyst said he believes the chain has a fighting chance.

"They're already bringing these customers in the door, now it's about expanding their base and building on a good thing," said Brian Yarbrough of Edward Jones.

Yarbrough points out that customers pay attention to value and are constantly scoping out deals, which may play to Tim Hortons' advantage.

"This gives them the opportunity to draw in new customers," he said. "As long as quality remains high, people may give their drinks a shot and realize they're paying less."

But even when the arena is cheap java, Tim Hortons faces fierce competition.

The company's announcement also comes as McDonald's launches its two-week long free coffee promotion in Canada, a limited-time offer meant to pull java lovers away from traditional coffee shops and into the Golden Arches.

Tim Hortons' specialty drinks will be available Nov. 14 in Ontario. Loyal "Timmy's" fans in other parts of Canada and the United States will have to wait until mid-December to get their hands on the new drinks.

Comments are now closed for this story

bikerborz
said
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I make my coffee at home. Haven't found better coffee yet. Cheapest to make, no lineups, and either "to stay" or "to go". Can't beat it!


Matt
said
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Sure, it'll be popular, Tim Horton's always has been and this won't change that. But it won't be as good as Starbucks or Second Cup. Take a look at McDonald's McCafes - they can't tell a latte from a cappuccino. When you go to Starbucks, you are paying for a quality made drink. I have a feeling Tim Horton's will end up serving espresso drinks of similar quality to those at McCafes.


Kim
said
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Why buy a coffee from a national cafe... why don't you support the local cafes/restaurants?? They serve better coffee and all the beans are roasted locally.


casual observer
said
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They must be doing something right if 8 of 10 morning coffees are purchased there. I look forward to their expanded menu. I don't look forward to the latte cliental it will attract.


Niagara George
said
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The problem is they will still be using the same second-rate, anything but fair trade, coffee beans. Even McDonald's coffee has more flavour.


Toni
said
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Want faster service, go to Coffee Time. Good coffee, great service.


The Village Idiot
said
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Will Tim Horton's be selling that coffee made after bats ate the beans and pooped it out? Anyone can do that and heck I need a job. Send me some coffee beans and give me a job and I'll make you a cup of coffee Tim Horton!


Mike Gayton
said
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Before Tim's adds any more hot drinks to it's menu, they should train their staffs how to make a decent French Vanille. Does not seem to matter which store in greater Moncton you go to, your chances of getting a good one is 50/50 at best. In a lot of cases the drinks are really not fit to drink.


Funny that
said
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People who identify themselves by the coffee they drink are lame. I drink whatever I feel like, when I feel like it if I'm close to it. If I'm passing a Mickey D's, it's Mickey D's, if I'm passing a Country Style, it's Country Style. I'm turned off by the line ups and poor service at Tims so I usually pass on it but if it looks like I can be in and out in under 3 minutes, I go there. Whatever. These people who live and die by their brand of coffee or fast food or whatever are just brain washed lemmings in my book. I will say that Starbux and Timothy's both give me acid reflux and the runs so I pass on them.


Kelly
said
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Their specialty coffees will come from a machine, not like the regular process at places like Starbucks. It will be consistant but I'll wait to see how good they are. I hope they are good 'cos the idea of getting a latte from a drive through is very appealing


Josh from Bowmanville
said
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can they get any greedier....this will make line ups longer then they already are service poorer than it already is....And it appears to me that they treat thier employees like slave labour... Good work Tim Hortons... good for you and your crap coffee


Mike Tenszen
said
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Early each morning, in my small apartment kitchen, using rich Columbian beans, freshly ground, and pure spring water, I make far better coffee and stronger coffee, than I have ever had at any Tim Horton's. Why is that? I am not in the coffee business and Horton's is. People who like Timmy's tepid brew can't know real coffee. Why is Horton's coffee so weak and tasteless? Profits? And you are now telling me that this company is attempting these exotic coffee brews? Yikes. If this trendy coffee is as bad as Tim's tasteless regular coffee, I won't be sipping it.


Northernheart
said
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WoW, so many nasty comments... personally can't wait. Go Timmys... we love Timmy's in the north!


mama
said
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uh, Tim Hortons already serves lattes! I get a vanilla latte everytime. Or does this article mean, the lattes will now be made fancy-like instead of however they do it now, which isnt bad considering its half the price of starbucks and tastes better. I also have to agree with many posters, this is going to slow the line down a lot, I think Tim Hortons should keep the coffee the way it is and train their employees to actually get your order right


MARG MM
said
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I had a latte in Tim Hortons in Metro Vancouver yesterday. It just goes to show you that the"East" doesn't even know or care what is going on in the "West" as usual.


Albert
said
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"Speedy, no nonsense java"? Tim's has good offerings at a very reasonable price. Still I am amazed at how slow and bad the service is. And I'm not talking about the staff. Systems are poor across the board. Why, for example, can you often get a full meal at Mcdonalds faster than it takes to get a tea and a dutchie at Tim's?



said
0
0

I love TIm's Coffee and Bait Shack, some of the best ever. Except at home using my Keurig one cup coffee brewer!


Sam C
said
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Let's be honest, everyone has the preference, and coffee is not the same from brand to brand. Some like Tim's, and some don't. I find it's okay coffee, but it is NOT worth 10 minutes in line at the Drive-Thru -- or even longer if you go in to the counter!


dtox
said
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Just another reason to slow the line down. I have made the switch in my morning coffee routine to McCafe.. Their service is fast and accurate and the coffee is good.


whine, whine, whine
said
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I can not believe all the whinning on this page today. Those of you who are complaining of lineups at tims should go get your drinks etc somewhere else. And the ones complaining about the taste of the drinks etc. well not everyone likes tims but there are more than you that do like tims.
Stop your whinning and go to starbucks etc. timmys doesnt need your kind of business.
I think it is wonderful timms is getting into a market that will bring in more customers not less


Lynn
said
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Hopefully they will be giving their employees Barista training.


Raj
said
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I never see a Timmie's, without seeing a huge line up. So, someone is loving their coffee. I prefer starbucks and always will . My SO prefers Timmie's. Its good that we have choices.


Sara
said
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Wont make any difference to me as I dont buy anything at Tims, too expensive for the quality. The coffee doesnt taste coffee. Mc Donalds have the best coffee and muffins. I get a small coffee there for less money and its the same size as Tims med., Last time I went the staff were slow and didnt listen to what was ordered.


joe canada
said
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plain and simple... if you want a quality cup of coffee you do not go to Tim Hortons.


CalgarySandy
said
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The proof is in the bean not the price and the competence of the person who knows not to cook the milk. A good cup cannot be made rapidly. Tim Horton's regular coffee was/is terrible. Tim's is responsible for their terrible staff as it is the job of the company train them. I think everyone should be able to enjoy a good cup of coffee at a reasonable price. I doubt you can get one at a drive through.


Thuy
said
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This is great news!!! I will definitely be giving them a chance and very eager to try them.


Jeff
said
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this is the worse thing that could happen!!! it is bad enough having to wait 20 min for a coffee for breaky sandwiches, bagels then pay for debit.. now we have to wait for this glad mcdonalds is giving away free coffee this week


clane
said
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don't mind the lattes and espresso, but if i go into Timmies and some beatnik is in there reading poetry, im outta there


CHerb
said
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I worked a at Tim Hortons for over a year and let me tell you, THEY HAVE ALWAYS BEEN SHIPPED FROZEN OFFSITE! At least in the last decade! Do you think they would be able to keep up with consumer demands making them fresh? They arent just a bakery. They are just trying to be Dunkin Donuts which is a good direction. They want to appeal to EVERY type of Canadian. If I hadnt been diagnosed with celiacs disease I would still be enjoying yummy honey crueller donuts and their blueberry bagels. The staff is hard working and incredibly efficient at my TIms. I think that Lattes would be an awesome addition.


kim kardashain
said
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Swell. The lineup will now move even more glacially.


When Good Coffee Goes Bad
said
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So let's see...8 out 10 coffees are purchased at Timmies.....2 are purchased elsewhere...and Tim's want to convert to the competitors’ style...so I guess those of us who want quick coffee will go elsewhere and Tim's can now serve 2 out of 10 instead of the other way around...good plan...and with the long line ups, maybe they will not even get the 2 from Starbucks....amazing...very successful formula...throw it out for the sake of change...first step to hearing a future coffee lover say: "Tim Horton's??...Never heard of it...wasn't that some failed specialty bistro that used to sell coffee before they went out of business...I remember then from my high-school economics course called: " 'Bad ideas and why successful businesses fail' "


krystal`
said
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to so many of you who commented adding that timmies was "bland and not worth the wait in line" you all must be staryucks customers, which means your used to the taste of burnt beans and over-priced nasty coffee.

i for one look forward to the addition of more variety when i walk up to the counter at timmies.

yes i can agree that at some locations, they seem to be overwhelmed with the options they have now, and can be short temperes, but thats is credited to the lack of proper train and work ethic, and not to be interpreted as the company overall, but to the individual franchise owners failing to do their part in maintaining the standard

to all you neigh-sayer, quoting the article "8 out of 10 coffees are sold at timmies", obviously there is more there than you are willing to admit, more than your "precious starbucks"




WpgLisa
said
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Almost every Tim's I've been in Winnipeg have staff working in them that can barely understand "Extra Large Double Double", not sure how they are going to understand complex orders for latte's and specialty coffees.A few years ago they removed all the powder specialty coffee stations from the Tim's (in Winnipeg at least). The staff said they removed them because they were too time consuming to make and weren't selling enough. How are they going to actually use a mixer and frother if they can't use a machine that you'd find in 7-11 that requires you to push one button?The line up's at any time of the day are so long from the lack of being able to communicate effectively with the staff. I have 0 faith in the service that will result from this. It was already only running at 10% capacity.


Coffee Girl
said
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there is something to be said about a staff member knowing your name and taking your order.

not pushed through like cattle and dealing with someone who pushes cattle through.

I like going into my favorite coffee place, taking the time and not being a number.

They can take their latte's and serve it to the next number, it wont be me :)


Heidideidi
said
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I agree with so many of you. Timmie's is a busy place....bagels, soup, sandwiches are fine....gourmet fancy coffee, ice cream, lasagna...that is going to far. Their staff is already overloaded. Again, they should go back to making their muffins and doughnuts in house....that part has gone down hill over the past couple of years. Sometimes, change is good, sometimes it isn't. This is and 'isn't' time.


Steve-O
said
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I never understood the whole Tim Horton's fandom thing. Their coffee & donuts are terrible and those drive-thru lines are long no matter the time of day. I'm sure those lineups will be worse now that lattes and the like are being made. But then again, do most TH clientele even know what a latte or cappuccino is?


ajay
said
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whats the point ...same crappy service same crappy coffee except they're going add foam....


Brent
said
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Tim Horton's is bland, not the same as it use to be. Only reason they make good $ is because of their recognizable name and the consumer is fooled. People will not try new things which is why many new chains cannot make a break through in the market place.


Brooke M
said
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I really want to support Timmie's but I fear that they are getting further and further away from what made them popular to begin with. Why are they chasing a 'Starbucks' type market? Stick to what you do best and get back to consistency. Far too often I get my Timmie's home to find that the sausage is missing from the breakfast sandwich or the mocha is nothing more than dirty hot water. I've lost count of the number of times I've asked for a banana nut muffin only to be told all they have left is bran this and bran that. Figure it out Tim's. Before you chase the wrong clientele, satisfy the ones that put you where you are today by getting back to your roots.


Nancy BC
said
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We've had lattes in BC for years. What took so long to add it to the line-up in the rest of the country. And my Tim's lineups at the drive thru and not slow -- we are used to lattes here.


snuffy
said
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Does this mean they'll finally start offering non-dairy products like soy milk? It's ridiculous that I can get soy in my coffee at the Petro station but not in a coffee shop.This is really going to increase the need for a Coffee-Only drive thru line tho, because you just know the asshole that orders a dozen BELTS for his whole office is going to start adding time-consuming drinks to his order :/


Darlene
said
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This is great news! As I sit here sipping on my timmy's drink I am exited for those people who like those kind of drinks. I myself only drink the steeped tea it is the best!!
There are complainers everywhere you go about things they like and don't like, like lineups. Timmy's always have lineups but the reward at the end is a great drink.
LOVE LOVE LOVE LOVE TIMMY'S


M Mac Isaac
said
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I rarely order food from Tim's and find it so ANNOYING to have to wait in the drive-thru for 1 coffee while the person in front of me had ordered food or ice caps........... Tim's should of just stuck to donuts & coffee! Mind you, the staff sometimes isn't as quick as they should be either!


David H
said
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....It's a significant departure from the basic formula of speedy, no-nonsense java that made Tim Hortons stand out as a franchise........ They should stick to what they're good at - and frankly they haven't been doing to well at that lately.


TLC
said
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FINALLY! I actually mentioned to Timmy's (whilst holding my Starbuck's cup) that they should offer some non-dairy drink alternatives (ie. latte's). They didn't even know what that meant. I'm hoping that Timmy's will get on board with that as, as much as I hate buying from Starbucks, I have no other choice for my Tazo Chai Latte (Lactaid)! And, did I mention, it costs $6.05 (venti)! Yeah, I know! It's my once per month treat! Yeah, Timmy's for FINALLY catching up with the times! (of course, I say that not knowing if they will actually start using a Lactaid product).


More isn't always better
said
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I think that Tim Hortons needs to revert back to what made it appealing in the first place rather than adding more items. The food and beverage offerings are lacking the quality they once had when items were made fresh on site. Now they are prepared somewhere else and shipped frozen, the taste and texture quality reflect this. Please Tim Hortons, make your existing menu better before simply adding more stuff to it!


CS
said
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Too bad they have the worst coffee around. I like McDonalds coffee more than their nasty brown water. Give me a starbucks light roast any day, worth the extra 70 cents.


Deena from Sask
said
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Great idea. I'm all for it. I never buy Tim Hortons simply because of the gas station tasting crap coffee. Now I can get a latte at 2 am. Kudos!!!


Mark
said
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Tim Horton's is a joke. Just about everyone else's offerings are better. They are now trying to play catch up. McDonalds coffee, muffins and oatmeal are superior and a better price.


Matt F
said
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Great, the Drive Thru isn't already held up enough as it is. Let's just give people another list of items to ask for, It's cool the vast majority of us have no where to go at 8 AM.


java fred
said
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Is it going to be the same powdered crap the serve now? Hopefully it's better than the "lasagna".


AC in NB
said
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What ever happened to the Coffee and Donought shops. I still like my Large double double from Tims, but I've gone back to making instant coffee at home in a travel mug. When I'm in a hurry, and it takes 15min to get a simple cup of coffee, well that's it. Breakfast sandwiches, soupes, lasagna, regular sandwiches, and now specialty coffee, lets ad another 5min wait. These employees unfortunately can barely tie their shoes, no offence.Either get a COFFEE ONLY line or you'll lose the regular coffee customers.


Elizabeth, Ontario
said
0 0

Starbucks, Second Cup & the Golden Arches just can't hold a candle to Tim Horton's. Great choice additions for Tim Horton coffee lovers!


CC
said
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I hope they add staff as well, the lineups are wait times are already horrendous due to Ice Caps, smoothies and hot food.


Prof. Pye Chartt
said
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About as tantalizingly irresistible as a "gourmet burger" at McDonald's.


Christine
said
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About three weeks ago Second Cup raised their prices (AGAIN). I gave a five dollar bill for a medium mocha and received three cents back. I have been going there for about 15 years three times a week... I just can't afford that anymore. I am so super excited for Timmy's new beverages!!!!!!


Jeff S.
said
0 0

Go Timmy's! I went to Starbucks a week ago to find out they raised their already ridiculous prices again. A tall Americano is now just shy of $3, which is a total scam considering it's just espresso and hot water. And I will say that I've become a big fan of McDonald's coffee these last few months, actually preferring it over Timmy Ho's. It's great to see so much competition in the coffee market, because that just means lower prices if you know where to go. And free coffee at McDonalds for 2 weeks? Capitalism seems to be doing us quite well in Canada.


bigtruck
said
0 0

just great, anouther product to slow things down , I'm going to stop getting my coffee from tims.


ubmad
said
0 0

Uh, oh. Now the lineups will slow down(I always like Tim Hortons cause the lineups move swiftly, not so sure about waiting behind the Frappe Latte crowd)


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