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Wi-fi and soft lights? Tim Hortons gets a makeover

A cup of Tim Hortons coffee is poured in Toronto on May 14 2010. (Chris Young / THE CANADIAN PRESS) A pot of Tim Hortons coffee sits on a hot plate as the company's financial year end results are announced at an AGM in Toronto on Friday May 14 2010. (THE CANADIAN PRESS/Chris Young)
A cup of Tim Hortons coffee is poured in Toronto on May 14 2010. (Chris Young / THE CANADIAN PRESS)

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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

Comments are now closed for this story

Gorg
said
0 0

Coffee is good, donuts are good! Maybe it's just certain outlets or maybe all of them. I find the people working in there could move a little faster than they are. I don't like line-ups.


Brad
said
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Too many unintelligible comments on here. If you were a business owner you too would look for ways to innovate and attract new clientelle. Those of you who think that Tims will lose customers are quite wrong. The backbone of Tims' success is their repeat clientelle. They aren't necessarily worried about them. They want to attract the fish that shop at Starbucks and Second Cup. And get this, Tim's has the added advantage of having developed a brand identity in Canada. As long as they find a way to incorporate their brand into whatever revamp they come up with then they have nothing to worry about.And to those complainers, I ask you this: If Tim's coffee and treats suck so much, why not do everything from scratch at home and boycott Tims? I know why. Because you just love to complain!


Jeff
said
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You can polish a turd all you want, but in the end it's still just a shiny turd! Tim Hortons, please focus on quality and service before adding more bells and whistles to your once very good outlets! I know I am not alone when I say the quality of the food and beverage items has taken a nosedive since they stopped preparing the items fresh on site. The baked goods and other food items such as chili, soups, and now lasagna are all prepared somewhere else and frozen before being shipped all across Canada and we, the consumer, can tell the difference between fresh and frozen! Again, Tim Hortons please reintroduce quality to your products because as I said; a shiny turd is still just a turd! You don't want to be known as Turd Hortons do you?


hollis
said
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i am one of the few people in my community who no longer gets his coffee at tim hortons. i do not like the long wait at tim's drive through which spills out on to the street. the line up at the counter is to long and the staff is not very friendly. you can never find a place to sit because when people get coffee they sit there gossiping for up to two hours. i now get my coffee a the irving gas station acoss the street.


Moreorless
said
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There is no chance I will attend the assembly line atmosphere of Tim Horton's believing it will be anything like Second Cup or other higher end coffee shops. Rarely have I gotten the order correctly from any Tim Hortons. The coffee shop I usually frequent actually knows my name and I see a lot of the same people there weekend after weekend. Think you can do that with a few dim lights and WIFI, Timmy''s?


Allan Thomas
said
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Toured USA & Canada This year. 6 weeks, 13,700 miles From Maine USA. I assure Canada is a beautiful country and the people were very friendly, But get with the century. WiFi needs to be generally available.


Keefer
said
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I think if they make things too weird for the current clientele and lose them, they won't get them back. If people change their routines now, you can't just go back to the old way and get people in again. Once they go somewhere else they're gone for good!


awa
said
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I agree with all the comments that TH coffee does taste awful. Also, what about the washrooms...small...very few...a tour bus comes in and it is dreadful. They only take Mastercard and refuse VISA. TH has to rethink many things ... first step... change the coffee!


gord gord
said
0 0

i would be happy if they would get rid of the take-out cups with the useless lids that drip and cut your lip


Canuckistan
said
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Good - Cheap - Fast:

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
said
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How about improving service and products before thinking a facelift will get more people in the door? Business 101. Stop following trends and remain true to your client base.


Sarah
said
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What about the most important aspect of the makeover - improving the shitty coffee and tea and baked goods on offer. Tim Horton's is not a quality product y'all.


Les In Ontario
said
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Why mess with a good thing? Update the interiors of the restaurants yes, but don't try to fix something that isn't broken. Well, I shouldn't say that. They need to go back to making their donuts and timbits in the stores and not have the batter shipped frozen from another manufacturer. That's when they started to go downhill. Upgrade the quality of your donuts, timbits and other food products. Tim's is unique because it ISN'T like Starbucks. You don't spend as long in line at Tim's as you do at Starbucks. I think they need to get rid of the paying by debit or credit card too! The drive thru times have incresed quite a bit since they brought that in.


Gordon
said
0 0

I have to say that if Canadians put half as much effort into things that matter as oppposed to drinking a cup of coffee, we would all be better off for it! What is even more special is having people sit in line for 20 mins with a 300 hp truck running the whole time - to hell with the environment so long as I get my precious cup of coffee!! Nice to see peoples priorities are in the right order !


RZ
said
0 0

If it's just for coffee, I'd opt for Starbucks over Tim's anyday, given I find the drive thru lines are too long (especially on weekday mornings) and their coffee tastes like water. Not to mention, Starbuck's basic coffee prices are virtually on par with their Tim's equivalents.But if I was to get some pastry or perhaps a soup/sandwich combo along with the coffee, definitely Tim's. :)


mikel
said
0 0

Trying to pander to those that won't come anyways. Spend the money of better quality staff and coffee, instead


KenjiSan
said
0 0

I guess I'm a bit of a coffee snob.Try and make coffee at home, always fresh ground whole bean from various regions of quality coffee growing countries, Peru, Kenya, Hawaii. Tims has the convience factor and the fact that they're on every street corner when you need a quick coffee, not very good tasting coffee though.


Boris
said
0 0

From where I am sitting, it's a huge strategic mistake made by Tim Hortons, and a leap forward at the same time. The machine is working, Tim Hortons is literally a cardio of the cities across Canada. And the beauty of it is that everything is on the go, 70% of coffee shops have line ups from the early morning until the end of rush hour. Now having add the wi-fi and comfortable armchairs would mean that you want all of this rush to settle and relax, have another danish or maybe even two, spend your free time in the company of friends and enjoy your time off work. The way I see this, Tim Hortons want to dominate the past rush hour market too. But here's a bit of a trick: "is it worth it?" Tim Hortons latte or cappuccino or even espresso will never taste as good as a quality coffee shop, and no matter how much they invest into new furniture, Tim Hortons shop will still remain same old thing, unless the company is planning on rebuilding the whole image of the business, which as I think is just stupid.
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
said
0 0

...I shall stick to Starbucks and its clientel.


barbp
said
0 0

Is this their excuse for no longer offering a discount to seniors? Not impressed, just another reason to go elsewhere. Disgusting!


Greg
said
0 0

About four years ago my partner & I went to T.H. about 3 times a day. She would go in the morning & buy 2 xl coffees & breakfast sandwiches. Then 2 more xl coffees each along with assorted donuts. We average $350-400 a month at T.H. & it gets worse because that was just one fast food place. That was insane for both my wallet & my health. Today I brew my own coffee in the morning & rarily buy fast food. I figure I am saving $500 a month that looks better in my wallet than theirs.


Nanook
said
0 0

Fire up the WiFi so we don't have to talk to our company.


Heather Morrison
said
0 0

We all know a medium double double is not a fancy schmancy coffee. Its an inexpensive "go to" coffee that fits the moment.

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
said
0 0

Just hope they select better quality coffee beans. Tims has a long way to go to beat McCafe.


AK
said
0 0

I like TIm's because they weren't Starbucks :(


Tomcio
said
0 0

This is crazy talk,

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
said
0 0

With the introduction of the Keurig coffee maker in peoples homes you have to know that Tim Hortons coffee is not well regarded by those whose appetites have been honed to appreciate better brews. Tim's would do well to consider the fate of their own brew and perhaps that is the rationale of this new direction.


TheOtherLowellInBC
said
0 0

I frequent tim's less than i used to. I tend to buy mcdonald's coffee more than Tim's. more predictable quality.


Jay
said
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I hope they have chosen someone other than Bell to provide the WiFi in these locations.

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
said
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TH have no idea how the real coffee taste.They could start from there first.Second-serving (yew) looking at them makes me sick,poor..Starbucks is little expensive-but that quality means and much better in many ways.Personal opinion.


timmie
said
0 0

why not change their name to Tim Bucks


Gary P.
said
0 0

I think this will be a positive change for Tim's. A nicer decor might encourage some of the usual mouth breathing clientele that drag their knuckles through the joint to get off their phones and speak in full sentences when they order and clean up their slovenly sloppy mess before they leave.


tomas
said
0 0

i proud to say that menu and kitchen redesign is my idea.tim horton is one great canadian business concept,slowly we are going to fast casual...
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
said
0 0

I can't remember the last time I actually ate inside a Timmy's. The ambience is...well, it's like an even crappier version of a run-down 80's McDonalds. So, I'm sort of glad about the revamp but I still doubt I'll ever go in, for the following reasons already mentioned above I believe:
-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
said
0 0

Maybe, just maybe it will encourage some people to park their fume spewing suv's, and actually walk in and pick up their coffee and maybe even sit for a bit, or at least get some exercise.


chris
said
0 0

Trying to get a seat at my local Tim’s is already a joke. In the evening(when I work) the place is full of foreign students doing homework. With the books there might be one small hot chocolate. WiFi will just encourage these leaches to stay longer. What happened to the 20 min rule?? Keep it clean and simple.


Sebastien
said
0 0

They'll make people want to stay, but there are still no loitering signs on the walls?


Dan
said
0 0

I think its a good step but Tims needs to fix some other problems as well.They went from local fresh donuts to junk thats sent in frozen that tastes like @&$%. The coffee can range from decent to burnt and stale regardless of their line about putting a clock on the pots.


Chris Coulter
said
0 0

Better furniture and lighting will alienate some customers? Come on, are there really people loyal to plastic and bright flourescent lights? As long as those in a rush can still get a fast cup of what they want, this sounds like a great boon to regular customers and new customers who previously would never go to Tims for coffee because they didn't like the brew (myself included). I like the BLT and think they make it very quickly. Miss the chile in a bread bowl. And the donuts are way worse than a few years ago - not a treat just ho-hum IMHO.



Samantha
said
0 0

I wonder how fast those nice new chairs will get absolutely filthy. What a welcoming environment, grimy chairs! If I worked at Tim's id be a bit peeved that the chairs were being made over but I still had to wear the same dumpy brown uniform. Atleast Starbucks employees can wear what they want within certain parameters with a sharp apron over top.


SAM
said
0 0

Uh-Oh....I foresee their prices going up dramatically to not only cover the expense of their upgrades, but also it would seem they want a piece of that 'lucrative" pie by serving more upscale drinks. Will this be a good thing????? Time will tell.


marie
said
0 0

A little imporvememnt is good, its a great place to meet friends and have coffee, its a great place to meet new people


Clamdigger63
said
0 0

Yep, that's what I want. Buy my coffee and donut and find that there is nowhere to sit as every seat is taken by people and their laptops who decide that instead of staying at home or the library that this is the place they are going to spend all day.
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
said
0 0

Tim Horton's needs to figure out a way to speed up their counter service. It's just too slowwwww in most locations not all. I like MickeyD's too Tanya and I have lots of memories there too at least they took debt cards a good decade before TH did. ;p


RG
said
0 0

A very poor product resulting from cost cutting, central manufacturing .Tim Horton's has gone steadily down hill now offering partly frozen,cooked twice donuts and coffee so hot that it burns to hold their paper cup.Simple sandwiches that take forever to get,as you wait in line to order,wait in line to receive your order,and then find out there is no place to sit as most places have 20 to 30 seats maximum.I quit going there for those reason's.Boosting the price of, going out to get specialty coffees and specialty foods,is NOT going to bring me back.I was a breakfast sandwich,two cup of coffee,doughnut,daily type of customer.


dreamer4darkness
said
0 0

As usual, big CEO gets it wrong again. You know my reasons for not going to Tim Horton's? 1) Tim Horton's coffee tastes like diluted sugar. Strength the brew, and maybe I'll come more often. 2) It looks like whoever prepared the baked goods there did lazy work and couldn't care less about their job. 3) If Tim Horton's wasn't a place for teenagers to hangout, swear, insult and intimidate then I'd consider staying awhile.I don't know if this applies to all places, but it sure as hell applies to the ones in my city.


Jake
said
0 0

People who drink Tim Horton's coffee have no concept of what good coffee tastes like. McD's has blown them out of the water on that one. McD's even uses a much higher quality tea. Tim Horton's green tea gives you the runs, hello, tea shouldn't do that, shows you the inferior quality additives they put in there. They can put all the makeup they want on their restaurants, doesn't change the fact that the products they sell are inferior. The foods are laced with numerous chemicals and loaded with msg, not to mention the fact that you're downing tons of glutens in both Tim's and McD's -- nobody should be eating at either place. They pretend their foods are healthy, reality is they are serving nutrient depleted, chemical garbage.


eddytoronto
said
0 0

Wi-fi soft lights etc...Will you be able to afford it?..Coffee for instance is up 40%, butter prices rose 27% and bacon, at 24% they all will double in 2012....There will be shortages in corn, wheat, soybeans, coffee and cocoa this year in 2012...So many will go to Tims but Only for the free Wi-Fi or is purchase required?and how long can you use Wi-Fi?...Will people be ther the whole day looking for work on-line with the purchase of 1 drink..Lol Tims iis asking for trouble with this Wi-Fi thing..


Bill
said
0 0

If it aint broke...dont fix it..

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.....


matlewy
said
0 0

Next step - coffee that tastes good. Naw, that'll never happen at Tim Horton's.


TimLover
said
0 0

I go to Tim's cause I like their quick service and the coffee or tea. So when I am on the road I can quick go in or go through the drive through. I don't want or need all the fancy coffees. Wouldn't even know how to order one in the first place! Most are fattening and full of junk. I do like the idea of changing it up as far as wifi and more comfy places to sit but there are a lot of blue collar workers that enjoy a Tim's ..they will make it so these folks won't want to go in any more.


Alan
said
0 0

Actually this is a really good question for Canadians.. how can Tim Horton's increase revenues without just raising prices. We all use them so much. Are they at the saturation point in terms of stores. Some have suggested quality is slipping as they continue to push revenues. What should they do? Thoughts.


Ktbay
said
0 0

Mark..revenues are up, 8 out of 10 cups Canada wide daily, share earnings up.Did you read the entire article? Not really indicators of of trouble.


Alan
said
0 0

Seems to me the current layout is practical and works except for the lines so maybe the goal is fewer patrons spending more. But wait that is Starbucks so as a strategy this is confusing.Are we headed towards Le Tim's, I hope not I like it the way it is. Really their only opportunity for more revenues is the evening. Maybe they should add singers and music in the evenings and become like the coffeehouses of old. Just think of it.Tim's Coffeehouse. featuring this week....


Tanya Fuller
said
0 0

TH has been in my life and holds thousands of memories. No matter what McD's does, or tries in attempting to beat up on Tim Hortons, it will never happen. Tim Hortons has been and probably always will be a large part of where memories do happen. Popping in after nights out, meeting friends, buying coffees for everyone in celebrations, doughnuts for the team, meeting that special guy..its all in my memories. Say that, McD! Aint gonna happen, you yankee upstart.


Rob
said
0 0

It's great to see Tim Horton's moving forward with decor, while staying family friendly.


Sammy
said
0 0

I like this idea! I spend a lot time in Stabucks drinking their way to expensive drinks while I sit and do school work. Having a more student friendly price range coffee place that provides that same style of atmosphere is perfect! And I would defently enjoy it if that atmosphere resembled that more.


David
said
0 0

You might want to just stay home Greg as this is for mature adults who don't have any agenda to drive and just want to chill not having to put up with the usual bs as you mentioned. This is a welcomed move by TH that customers will enjoy hopefully.


Miss Sunshine
said
0 0

In order for this to work, the class of the clientel will have to change. Can you imagine sitting on a cozy couch just after some person with dirty coveralls did. Yuck.


Norm Price
said
0 0

How about making the coffee shops accessible for people with physical difficulties so that they can "enjoy" the facilities


simplicity please
said
0 0

I don't know about this change. I like the idea of more comfortable seating and wii-fi but personally, I think what made Tim's, Tim's, was the affordable coffee and the shorter waiting times (have you ever stood behind someone at Starbucks ordering a drink with 20 ingredients? Don't know about you but that usually lead to my eyes rolling to the the nether regions of the back of my head while I lost valuable lunch time!).


Mark
said
0 0

You know they are in trouble when they have to copy Starbucks. It won't fix the fundamental problem which is very poor product quality resulting from their cost cutting, central manufacturing mentality. Tim Horton's has gone steadily down hill and eventually the brand equity will disappear. Get back to your roots! Make quality products in your stores!


GREG TROLLEY
said
0 0

I cannot wait to sit down with a nice expresso and my life mate Carlos. It will be a nice change of pace for tim hortons. We will be abe to cuddle up on the couch and surf the net looking for our next couples getaway and enjoy an excellent cup of mocha. Maybe we will even try their meaty lasagna. I say excellent choice Tim's.


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