Tim Horton s unveils concept store The coffee maker experiments with beer and unisex washrooms David Friend, The Canadian Press July 17, 2014

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1 Tim Horton s unveils concept store The coffee maker experiments with beer and unisex washrooms David Friend, The Canadian Press July 17, 2014 TORONTO If a pint of coffee-flavored beer gets you salivating, then Tim Horton s has a few other ideas that could change how you think about the restaurant chain. Executives have lifted the curtain on a new concept store, buried deep inside the Metro Toronto Convention Centre, as part of an invite-only convention this week for store owners and suppliers that is essentially a visual brainstorming session. The full-scale model offered the clearest idea yet of where Tim Horton s (TSX:THI) is headed and how it thinks Canadian tastes will evolve, including expecting more than just coffee, doughnuts and sandwiches. It s not your dad s Tim Horton s, so to speak, said chief operating officer David Clanachan as he looked around the store. A prototype of a Tim Horton s Restaurant of the Future Our franchise partners are all going to be here. We want them to think outside the box, along with us, to say What if and What could we be? Certainly there were plenty of ideas to chew on some even controversial.

2 Consider the beer taps that pour brews inspired by Tim Hortons trademark coffee flavor and a strawberry lager for the sweeter tooths. Or how about a unisex washroom that centers around a communal sink. And there s even a conceptual design for a new Tim Horton s logo that s features only a bright red coffee bean. Some of the ideas will never see the light of day, Clanachan admits, while others are certain to land inside your neighborhood stores only years from now. Tim Horton s first showcased digital menu boards at its previous model store concept seven years ago and only recently have they become part of the store design. Redefining itself in the highly competitive food services industry will be a challenge for a mainstay brand like Tim Horton s, but as more companies try to encroach on its dominant position in the Canadian coffee market it s not like there s much of a choice but to find ways to be different. The consumer is much more savvy today than they have ever been in the past, Clanachan said. They have opinions on what they re looking for, and they have high expectations. Companies like Starbucks have raised the bar for the local coffee shop, while McDonald s has lowered the price of a cup of coffee and even gives it away for free several times a year. Tim Horton s executives say that where they can excel is providing something different a combination of convenience and creativity. Some of the more immediate changes could be in menu options. The concept store offers a variety of omelettes, breakfast crepes, cupcakes and decadent cookies that could all be ordered from a touchscreen menu installed in tabletops. Once ordered, a Tim Horton s employee brings the food to you, Clanachan said. Meanwhile, customers who are registered with a future version of the Timmy Me smartphone app would be able to opt for a more personalized experience. The app will remember their name and their favorite food items, which in theory will significantly reduce the time it takes to order both in the store and the drive-thru. Customers in a rush can also swing by a grab-and-go section of food that ranges from sandwiches and salads to hot food items.

3 Other changes are obvious at first glance, including the entire structure of the building, which is made of glass and wood panels to provide a heightened level of transparency to everything inside, including the kitchen area. The lighting is bright and adjusts to the time of day for a different ambience. Employees are dressed in white uniforms with a red-trimmed asymmetrical neckline that evokes the retro-futuristic garb of Star Trek, accessorized with a visor. Loyal Tim Horton s customers might start to notice at least some of these changes sooner than later, chief executive Marc Caira said. I envision a lot of what you see here being implemented not too far down the road, he said. Friend, David. "Tim Horton s Unveils Concept Store." Macleans.ca. The Canadian Press, 17 July Web. 9 Sept <

4 Marketing Research Proposal for Tim Horton s Proposal to determine the integration of new innovative ideas to redefine Tim Horton s brand among competitors The idea of a concept store has proved to be successful in unveiling new ways to sell their merchandise (see Table 1). Seven years ago, at its previous store concept, Tim Horton s displayed digital menu boards to entice customers with videos of slowly dripping hot coffee and freshly sliced tomatoes added on their sandwiches and today they have become a part of the store design. This proposal responds to a request to establish new innovative ideas to differentiate and redefine Tim Horton s in the highly competitive food services industry. At this stage of idea conception, establishing the need for marketing research is vital in order to avoid making detailed and big picture errors. The initial research used may be exploratory to clarify and define the nature of the problem and is useful in new product development. A problem that Tim Horton s can look to address may be changes in consumer-related trends, and focus on a solution that is attainable through changes in menu preferences, behavioral shifts and technology convergence. They can establish research objectives by answering some questions regarding healthier food selection and variations, and how they plan to keep up with technological changes to keep them innovative and relevant with a younger demographic. A research framework to follow would be to use exploratory research objectives to clarify potential business opportunities. Introducing healthier natural product items to the menu, looking at different advertising campaign launches to cater to a younger population (social media advertising) and updating their current Timmy Me App are all attainable. To begin, descriptive research may be used to establish the characteristics of the target audience and what they are looking for in order to move forward to address other social and technological changes that are best suited for the audience. By having a definitive audience to pursue their market research (ex; younger target market ages 18-25), Tim Horton s can then determine research methods. They may consider an interactive approach, hosting activity oriented events at high traffic locations centered around the concept of a well deserved healthy lifestyle. Another method may be experimental in that they showcase the concept store through social media with not only franchisees and suppliers able to see the new ideas, but presenting them to the public. Focus groups can have access to the concept store and have them play around with the ideas suggested. Through the effectiveness of social media, it may create a buzz online with live interactive videos about customer s initial reaction to some suggestions, etc. The focus group would then provide their feedback after their visit by submitting answers to surveys questioning them about their visit.

5 Some research questions would be: What do you think of beer on tap at Tim Horton s? What is something that you would like to see introduced in the stores? How easy is the Timmy Me app and what would you change to make it better? Keeping the customers involved with key decision making enhances customer loyalty because they feel a part of the brand. It can help bridge the gap and narrow several ideas and concepts because we ve looked at the customers first impression and what products or changes they respond positively to. Consumer demands are evolving and expectations are rising and a proposed concept such as updating existing technologies may be needed. The newly enhanced Timmy Me app, as suggested, will remember their name and their favorite food items. When using the app, customers can be more selective, which in theory will significantly reduce the time it takes to order both in the store and the drive-thru, improving customer wait time and traffic flow during busy times of day. Table 1 Proposed ideas gathered from concept store unveil Proposed Ideas Change in logo: Design featuring only a bright red coffee bean. Changes in employee uniforms: White uniforms with a red-trimmed asymmetrical neckline. Renovate store structure: Made of glass and wood panels to provide a heightened level of transparency; unisex washrooms with communal sink. Changes in menu options: Offering a variety of omelettes, breakfast crepes, cupcakes, decadent cookies and beer on tap inspired by Tim Horton s trademark coffee flavour. Innovative access to food products: Ordering food from a touchscreen menu installed in tabletops. Updates in existing technologies: The Timmy Me smartphone app would offer a more personalized experience remembering their name and their favorite food items.