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Wi-fi and soft lights? Tim Hortons gets a makeover
Vanessa Greco, CTVNews.ca Staff
Date: Friday Nov. 11, 2011 5:22 PM ET
Canada's largest coffee chain plans to undergo an upscale makeover that'll encourage customers to get out of the drive-thru line and into brand new armchairs.
Tim Hortons has decided to give some of its stores a chic facelift that the company hopes will persuade java lovers to come inside and stay awhile — and maybe even purchase an extra double-double.
Select stores will be spruced up with soft lights, wireless internet and bench seating.
The company also wants to go the open concept route with its kitchens. A new floor layout will give customers the "ambience" of watching their food being prepared.
While the redesign breaks away from Tim Hortons' tried-and-true model of a simple coffee shop, this isn't the chain's first foray into fancier territory.
More than a week ago, Tim Hortons said it would be expanding its menu to include fresh lattes, cappuccinos and espresso shots. Prior to that announcement, the specialty coffee market was cornered by retailers such as Starbucks and Second Cup.
"While specialty coffee represents a relatively small part of the overall coffee market, it is a growing segment," Tim Hortons CEO Paul House told The Canadian Press.
That growing segment is apparently a lucrative one as well.
Elaborate java and a cozy restaurant layout is expected to draw customers into the store and persuade them to spend a bit more money, explained House.
"A baked product is really, in some cases, an impulse buy so if you're looking and you like what you see you're more likely to buy it," he said.
It's a model that designer coffee goliath Starbucks has already perfected by allowing patrons to perch on plush lounge chairs and linger for several hours.
There is money to be made by giving customers a "third place" — outside of work and home — to simply rest and sip a coffee, journalist Taylor Clark explains in his book Starbucked.
While Tim Hortons isn't known for trendy loungers and elaborate décor, one research analyst said there's nothing wrong with the company trying to tinker with a successful business model.
"As one of the most popular coffee chains in the country, it's natural that they'd want to continue developing," Brian Yarbrough of Edward Jones said when the chain announced its specialty offerings last week.
Eight out of 10 cups of coffee sold in Canada every morning come from Tim Hortons, he said.
One glance at the company's earnings shows that success is apparent.
Tim Hortons earned $103.6 million or 65 cents per diluted share in the third quarter, up from $73.8 million or 42 cents in the same 2010 period.
Its total revenue was $726.9 million, up from $670.5 million.
With files from The Canadian Press
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Gorg
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hollis
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Moreorless
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Allan Thomas
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Keefer
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awa
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gord gord
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Canuckistan
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Choose any two.
You cannot get all three and any restaurant worker will tell you that. Tim's recent attempts to upgrade the menus has lead to long line ups in the drive-through and in-store as well. Service is falling and tempers are rising.
We go to Tim's because it's cheap and it's fast, and we know exactly what we are getting. If it ain't broke, don't fix it.
reener
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Sarah
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Les In Ontario
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Gordon
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RZ
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mikel
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KenjiSan
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Boris
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So here's the conflict of a fast food style coffee shop and a sit down style coffee shop. Will for example "Mario's espresso" or "Magic coffee" lose their clientele because Tim Hortons decided to partially imitate their way of business, highly doubt that.
However, it is a fact that this makeover will attract new customers, but I personally think that it's not worth effort and investment.
On the bright side there's lots of furniture to be sold and new contracts for flooring companies coupled with new contracts with coffee distributors to be signed, and of course thousands of Wi-Fi access points to be installed.
billy
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barbp
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Greg
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Nanook
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Heather Morrison
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I dont mind Tim's trying this but instead of spiffing up a few stores with fancy seating etc. just start by giveíng ALL locations FREE Wi-Fi.
If I want great coffee I'm not going to Starbucks to pay exorbitant prices for plastic coffee. I'll make it myself or find a real barista.
Tim's is that hot fluid we use to give us that pick me up during the day.. nobody ever claimed it was quality coffee. Its convenient and inexpensive and you acquire a taste for it..
jc
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AK
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Tomcio
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In reality an actually coffee from starbucks will cost you 1.75 - 2.15! the cost goes up with their other various drinks like lattes around 3.50 and it goes up from there but the coffe isn't expensive! & my local starbucks in Stoney Creek Ontario is wonderful in the morning with no line up. Park the car walk in pay get my coffee control my own sugar and milk level within 5-7 minutes I am on my way! Try doing that at 7:30AM that quickly at Tim Hortons & really there coffee is not that good. Tastes like crap.
Now if there are people who don't like starbucks they should try COUNTRY STYLE, country style has delicious coffee and they grind there beans in front of you! Freshly baked donuts, different flavours, massive muffins! & their bistro is great.
Michael
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TheOtherLowellInBC
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Jay
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Bell is the provider in Starbucks and the WiFi service is absolutely brutal! Constantly dropping connections and so slow I'm better off tethering to my phone and using a 3G connection.
As someone who works on the road I make a point of taking my business to local shops that offer WiFi. To date Tim's has often been off my list because they do not have WiFi. BTW - Country Style has WiFi .. and better coffee :-)
mary
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timmie
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Gary P.
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tomas
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i am recommending free wifi in any canadian city , communication is key for business and public safety so we democracy.
master chef consultant
td
DJ
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-The food is CRAP. Tim Horton's used to be good when everything was baked fresh in-house. Now that it's frozen/precooked and reheated, it always tastes horribly bland and stale.
-The service STINKS. As someone mentioned above, the counter service is the worst. It takes forever to get your order and often it's messed up. They also seem to hire only kids or incompetent employees who are sooo slow and perhaps a bit touched?
Honestly, they'd be better off putting the money into making real, fresh food again and better hiring/training programs. Maybe if they can offer a real wage, they can attract better staff.
Gerald
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SAM
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marie
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Clamdigger63
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One of the facts that I like about Tims apart from their coffee is that they are not Starbucks.
Big M has great coffee 2
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dreamer4darkness
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eddytoronto
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Bill
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the wi-fi, great. soft lights couches...no way..article says 8 out of 10 cups of coffee are sold by tim's, your gonna lose this making specialty coffee's....give me my meal/doghnut, coffee and let me surf the net...next please.....
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Miss Sunshine
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simplicity please
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