Tim Hortons is running neck and neck with McDonald's for lunchtime market share in Canada. The company now has plans to open 500 new restaurants over a 5 year period, but new venues don't guarantee a boost in sales. In fact, a respectable 17% rise in earnings per share for the first quarter of 2014 fell short of market expectations - so the stock price fell.
Last week, CEO Marc Caira unveiled a new tactic: "We want to have an in-depth and data driven understanding of our guests. We are aiming to become one of the most consumer-centric companies in the industry". According to Mr. Caire, for example, the popular crispy chicken sandwich "is the lowest calorie of our competitors, it is the lowest fat level of our competitors and it's got a proprietary seasoning". To expand its younger demographic, the company came up with a "Double Double Card", a combination credit card / loyalty card that will provide information on customers' buying habits - a move T.H. says will enable it to create more consumer-driven menu items.
In the American market, the company plans to open 300 new outlets but as CEO Caira admitted "in the past we may have tried to use Canadian products a bit too often". They're now experimenting with chorizo pie in Columbus, Ohio, meatball panini in Detroit, Michigan and other entrees designed to match American tastes.
All of these innovations enhance Tim Hortons' Strategic Plan rolled out in February, 2014 - more proof that smart companies will constantly rethink and relaunch to stay fresh in a competitive market.
No comments:
Post a Comment