Tim Hortons Lays Foundation for U.S. Growth

New products being developed to appeal to American food preferences.

May 12, 2014

OAKVILLE, PROVINCE – Tim Hortons Inc. “will take a decidedly American approach to the menus at its stores in the United States” as the Canadian-based QSR prepares to open more stores south of its border.

The Canadian Press reports that although “it's still a work in process,” Tim Hortons President and CEO Marc Caira said the chain needs to reconsider what it believes U.S. customer food preferences are, which don’t always mesh with Canadian food choices.

"The challenge there is to build loyalty beyond the breakfast day part, and how we plan on doing that is by developing products specifically for the American consumers," he said in a conference call with analysts last week. "In the past, we may have tried to perhaps use Canadian products a bit too often."

Caira, who joined Tim Hortons last summer from Nestle, didn't say what he believes U.S. consumers want, but said a major focus would be  “on snacks for lunch and dinner hours” as well as an emphasis on new breakfast items. "We'll continue to build breakfast," he said, adding, "We'll continue to build coffee."

The news source continues that Tim Hortons is looking for “fresh inspiration in the United States” as it continues to build traction. The company announced plans earlier this year to open 300 new U.S. locations by 2018 in various cities in Ohio, Indiana and North Dakota. Last week Tim Hortons added Pennsylvania and West Virginia to the list.

QSR competition in Canada is relatively tame compared to the United States, which poses a challenge for Tim Hortons. However the chain is updating is menu with new offers such as warm kettle chips and a new line of frozen green tea beverages.

"We need to convince a small percentage of those ordering a single item to order two and, for those currently ordering two items, we'd like some of them to order three," Caira said. 

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