TORONTO – Tim Hortons has a few things going on that are good for the company and their customers, and the chain is prepared to spend upwards of C$80 million to spread the news as part of the company’s “Back to Basics” plan.
The company expects to use the investment to highlight improvements in product quality which include a new dark roast coffee, Craveables lunch sandwiches and freshly cracked Canadian eggs in breakfast sandwiches.
“Despite the disruptions from COVID, our team maintained focus throughout 2020 and has delivered three consecutive product launches with encouraging early results, contributing positively to our sales,” said Axel Schwan, president of Tim Hortons. “Our new dark roast coffee has received a higher guest rating than any of our previous recipes; our affordable, Craveables lunch platform — with the roast beef and crispy chicken sandwich is receiving great feedback; and we are seeing meaningful sales contributions from our nationwide launch of freshly cracked, Canadian eggs in our breakfast sandwiches.”
Another facet of the Back to Basics plan is digital platforms such as the Tim Hortons mobile app. The company said customer engagement with the brand via the app has grown approximately five-fold since 2018, and roughly one-third of all Canadian adults have used the Tim Rewards loyalty program in last 18 months.
“In addition, we are continuing to work hard on improving personalized offers on the app and are rolling out predictive selling on our drive-thru menu boards across the country this year,” Schwan said. “This is all part of our goal to provide Canada’s best in class digital guest experience.”
Advertising also will receive a boost throughout the balance of the year, the company said. Advertising campaigns will highlight taste and quality, value for money and heighten brand awareness among consumers.
Schwan noted that “… when it comes to our brand perception overall, we continue to see improvements – guest satisfaction has grown significantly driven by simplifying and improving the quality of our menu items plus guests are experiencing faster speeds of service. Community contributions by so many of our restaurant owners, bolstered by our branded coffee trucks travelling Canada and supporting front line workers with free coffee and baked goods also had a key role in driving continued improvements in overall brand perception.”
Advertising contributions from restaurant owners in Canada will be increasing by 0.5% of sales to provide a sustained, increased level of investment in advertising, community and digital initiatives in 2022 and beyond, the company said.
“The efforts behind our Back to Basics plan are starting to deliver results,” said Jose Cil, chief executive officer of Restaurant Brands International, parent company of Tim Hortons. “The plan focuses on building an experienced, talented and stable leadership team, investing in product quality, becoming an industry leader in the digital guest experience, delivering great value for money, and continuing to build our strong, iconic brand in communities across Canada.
“With an exceptional leadership team now at the helm, early successes in our digital journey and encouraging results from our investments in product quality, we are confident the business is heading in the right direction,” Cil added. “Our investment today reflects that confidence and our optimism in the plan.”