The new CEO of Tim Hortons wants to evaluate all aspects of operations including examining the offer of 6 different cup sizes and the 60 donuts available for sale.
In his past experience as an executive at Nestle’s South American operations, the new CEO comes to Tim Hortons with an open mind and thinking like a customer. “Future battles are not going to be won, in my view, with who has the best strategy or who has the best innovation,” he said. “The companies that will win will be the companies that can execute flawlessly at the store level.”
Tim Hortons has been faced with increased competition from fast food restaurants like McDonald’s that has offered premium coffee for free and created a coffee cafe in their quick serve locations. Starbucks is increasing the stakes with improved loyalty programs and innovation. Starbuck’s president is often quoted as stating they are in the experience business and not the coffee business. If experience is going to be the differentiator, it will be interesting to see how all of these companies achieve this consistently.
Incidentally, one of convenience store’s primary competitive weapons was speed of service.