Tim Hortons to Implement Notable Changes Across Café Locations
Tim Hortons is set to introduce significant changes at its café locations, reflecting a commitment to customer feedback and innovation. These enhancements include an improved English muffin, the introduction of fountain drink machines, and advanced espresso equipment. President Axel Schwan announced these upgrades, emphasizing the café’s focus on providing better quality products.
New English Muffin Launch
The revamped English muffin aims to enhance the texture and overall experience of various breakfast sandwiches. While the current muffins have been described as “great,” the company seeks to make them “fluffier and even more enjoyable.” This new version is set to launch in Western Canada by the end of this week, with a nationwide rollout expected by the end of the quarter.
Continuous Improvement in Menu Offerings
These changes follow previous enhancements to Tim Hortons’ menu. Recently, the company enlarged its chocolate chunk cookies and increased the filling in its apple fritters and Boston Cream doughnuts. Such updates align with Schwan’s “back to basics” strategy, aimed at improving core offerings while simultaneously innovating.
- Improved English muffin
- Enlarged chocolate chunk cookies
- More filling in apple fritters
- Increased Boston Cream doughnut filling
Expansion into New Beverage Markets
Tim Hortons is also expanding its beverage selections. Recent efforts include introducing wraps, rice-based bowls, flatbread pizzas, and innovative drinks. The introduction of energy drinks and beverages with unique qualities has helped the brand compete with major players like Starbucks. Cold beverages now account for 27% of total drink sales, having risen by 8.6% even during cold weather conditions.
New Espresso and Fountain Drink Machines
The new espresso machines, which have been developed over several years, are designed to deliver faster service without compromising quality. Currently, these machines are present in approximately 10% of Tim Hortons locations but will become standard as older models are phased out.
Fountain drink machines, developed in collaboration with Coca-Cola, are another innovation. These machines are aimed at increasing combo sales and complementing the brand’s cold beverage offerings.
Recent Financial Performance
Following these strategic enhancements, Restaurant Brands International (RBI), the parent company of Tim Hortons, reported a fourth-quarter profit decline compared to the previous year. The profit fell to $113 million, down from $259 million, although revenue increased to $2.47 billion, up from $2.30 billion.
Challenges and Adjustments
In the face of rising costs, particularly regarding beef and coffee, Tim Hortons has strategically raised coffee prices by an average of three cents per cup last year, marking the first price adjustment in three years. Schwan noted that coffee costs have recently declined, offering some relief to the company.
Overall, comparable sales in Canada grew by 2.8% in the last quarter, demonstrating the brand’s resilience amid challenging economic conditions. The outlook appears promising, as the company continues to refine its offerings while navigating through a competitive landscape.
