Tim Hortons to Revamp Menus and Stores Soon
Tim Hortons is set to make significant changes to its menus and store formats, enhancing the overall customer experience. According to President Axel Schwan, the company aims to improve its offerings based on customer feedback.
Menu Enhancements and New Equipment
The popular café chain plans to introduce an upgraded English muffin, which is expected to launch in western Canada by this week. This new muffin will be available in all locations by the end of the quarter. Schwan expressed that, despite already having a “great” muffin, the aim is to make it even fluffier and more enjoyable for breakfast sandwiches.
Ongoing Improvements
- Last year saw the enhancement of chocolate chunk cookies, making them larger and more decadent.
- Additional fruit was added to apple fritters.
- Boston Cream doughnuts received more filling.
These menu adjustments align with Schwan’s “back to basics” strategy, initiated after he became president in 2019. Furthermore, Tim Hortons continues to innovate by competing with major fast-food chains by offering wraps, rice bowls, and flatbread pizzas to attract customers during the afternoon and evening.
New Espresso Machines and Fountain Drinks
Tim Hortons has also introduced new espresso machines and fountain drink systems, with the latter still being rolled out. The espresso equipment, now operational in about 10% of locations, allows for faster service and enhanced beverage quality. Schwan noted this development aims to improve customer satisfaction with better-tasting drinks delivered more efficiently.
The fountain drink machines, developed in collaboration with Coca-Cola, are intended to drive combo sales and complement various cold beverages that the brand is exploring.
Performance Trends
In a recent report, cold beverages contributed to 27% of Tim Hortons’ total drink sales for the last quarter. Even in unusually cold December weather, sales for these items grew by 8.6%.
Restaurant Brands International (RBI), the parent company of Tim Hortons, reported decreased profits yet increased revenue. For the quarter ending December 31, profit fell to $113 million, a decline from $259 million the previous year. However, adjusted earnings rose from 81 cents to 96 cents per diluted share.
Future Outlook
Despite challenges like rising beef and coffee prices, Tim Hortons has remained resilient. Coffee prices were adjusted by an average of three cents per cup last year, the first change in approximately three years. Yet, coffee costs have recently shown signs of relief.
Schwan indicated that the company anticipates continued growth in the competitive quick-service restaurant market, particularly with its latest menu revamps and equipment upgrades that cater to changing customer preferences.
