1. Expansion &
Transformation
Colonizing the
Canadian Foodscape
Michael Rodrigues,
Allan Khazak, Arulmenan
Elango, Emily Andrzejewska,
Laxsana Thayanithi
10. National Growth
• Mid 1970s
• Larger revenue
• $1 Million – Mercantile Bank of Canada
• 1978 – 100 locations
• 1986 – More locations than top three
competitors combined
11. Ron Joyce
• Ron Joyce – sole owner of Tim Donut
– attention to detail and operational efficiency
– “Doughnut University”
12. East & West
• Slow-paced national growth
• 1974 – Eastern Growth
– New Brunswick, Nova Scotia, and other
locations
• 1975 – Western Growth
– British Columbia
• Familial networks
• Ontario base connections
14. Regional Division
• 1986 – a location in every province
• Regional division
– tastes affected sales and product lines
– Western underperformance
15. “It is almost as if you could draw a
north-south dividing line, from the
western boundary of Ontario, straight
down through the United States;
certain types of restaurants work well
east of the boundary, but fail to
connect with customers west of it.”
- Ron Joyce
16. Competitors
• Competitors failed – Hortons prevailed
– Grueling
– Willingness to decentralize
– Dividing day-to-day operations into
geographic regions
17. The 70s & 80s
• 1975 – competitive marketplace
• New chains
- Existing donut operations
- Extensions of Existing food providers
- Foreign to the food industry
• Strategies
• Emergence of Second-tier chains
18. The Market
•Specific markets:
- Tim Horton’s – Ontario and the East
- Robin’s Donuts – the West
- Dunkin Donuts – Quebec
- Country Style – Greater Toronto Area
19. Economic Hardship
• 1980s economic struggles
- Increase is unemployment
- Business improves
• Economic insecurity
- People laid off work
- More donut shop franchises
20. Tim Hortons’ Rise to Power
• Unaffected by the recession in the early
1990s
• “1000 by 1995”
• Targeting small towns
• Independent owners had been locked in
struggles against larger chains
22. Integration of New Services
• The expansion of the “basic” menu
• The bagel explosion
- Jewish origins
- Feared loss of authentic bagels
• The eminent decline of the donut
• Time shifts in sales
23. Outlet Sizes
• Satellite Outlets
– Medium sized Serving and Seating Area
• Kiosks
– Small 200 Square ft. No seating area
25. Twinned Outlets
• Twinned outlets – shared seating space
with different kitchen facilities
• Joined forces with Wendy’s to open first
twinned outlet
26. Family Atmosphere
• Made significant changes in appearance
– Prohibited Smoking
– Lightened interior
– Replaced counter seats with fast food tables
• Attracted female, families, and white
collar workers
28. The Drive Thru
• drive thru broadened the market
• convenience appeals to a wide variety of
individuals, such as…
- on-the-go students
- professionals
- mothers with difficult children
29. The Drive Thru
• drive thru itself evolved over time with
modern technology
• however it was not easy to implement due
to:
– physical barriers
– establishing a new way of selling products
– changing the social culture of donut shops
30. The Drive Thru
• shift away from nostalgia
• new shift in Canadian economic culture
• focus on convenience and versus social
culture
31. The Drive Thru: Then & Now
• not a huge impact in the market
• difficult to implement, but very successful
• nonetheless, crucial to the survival of each
individual outlet
