1.0 Industry analysis
1.1 Quick service restaurant industry
In 2014, there has been an increase in the earning from restaurant industry of about 3.6 percent compared to 2013 (Schnarr & Rowe, 1-15). In North America, the restaurants are categorized into two sectors for example full-service restaurants and limited-service restaurants. Limited-service restaurants are further divided into fast-casual restaurants and quick-service restaurants. Although, over the past years there has been a considerable increase in the growth rate of fast-casual restaurants, quick-service restaurants seem to have potential to earn high profitability. This is because the menu prepared by these restaurants is easy to consume and affordable. Moreover, they sell fast …show more content…
However, a lot of rival firms were entering into the same market, due to which the company faced strong competition from large quick service restaurants like McDonalds, Starbucks and Dunkin’ Donuts (Schnarr & Rowe, 1-15). These competitors have been occupying a higher market share in coffee and breakfast business. In 2014, Tim Hortons had stores in only 4,546 locations, whereas, its competitors like McDonalds, Starbucks and Dunkin’ Donuts had their stores in 35,429, 23,305 and 10,083 locations respectively (Schnarr & Rowe, 1-15). This shows that Tim Hortons lags quite behind its competitors in occupying the fast food market. McDonalds is known for its wide range of breakfast foods like muffins, sandwiches to varieties of smoothies and deserts. On the other hand Starbucks and Dunkin Donuts have established their market share by offering 30 origins of coffees and 52 varieties of donuts respectively (Schnarr & Rowe, 1-15). All the three competitors of Tim Hortons have established their names in the market due to their unique food and beverage varieties. Thus, the company needs to expand its food choices continuously in order to maintain their position in the quick-service restaurant market. From the financial viewpoint, Tim Hortons had a total revenue of $3.3 billion in 2013, and that was quite below the financial earning of their competitors. McDonalds had a revenue of$28.1 billion, whereas Starbucks earned $14.9 billion globally and total sale of Dunkin Donuts was $7.4 billion (Schnarr & Rowe, 1-15). This shows the global competitive scenario for Tim Horton’s quick-service
1.1 Quick service restaurant industry
In 2014, there has been an increase in the earning from restaurant industry of about 3.6 percent compared to 2013 (Schnarr & Rowe, 1-15). In North America, the restaurants are categorized into two sectors for example full-service restaurants and limited-service restaurants. Limited-service restaurants are further divided into fast-casual restaurants and quick-service restaurants. Although, over the past years there has been a considerable increase in the growth rate of fast-casual restaurants, quick-service restaurants seem to have potential to earn high profitability. This is because the menu prepared by these restaurants is easy to consume and affordable. Moreover, they sell fast …show more content…
However, a lot of rival firms were entering into the same market, due to which the company faced strong competition from large quick service restaurants like McDonalds, Starbucks and Dunkin’ Donuts (Schnarr & Rowe, 1-15). These competitors have been occupying a higher market share in coffee and breakfast business. In 2014, Tim Hortons had stores in only 4,546 locations, whereas, its competitors like McDonalds, Starbucks and Dunkin’ Donuts had their stores in 35,429, 23,305 and 10,083 locations respectively (Schnarr & Rowe, 1-15). This shows that Tim Hortons lags quite behind its competitors in occupying the fast food market. McDonalds is known for its wide range of breakfast foods like muffins, sandwiches to varieties of smoothies and deserts. On the other hand Starbucks and Dunkin Donuts have established their market share by offering 30 origins of coffees and 52 varieties of donuts respectively (Schnarr & Rowe, 1-15). All the three competitors of Tim Hortons have established their names in the market due to their unique food and beverage varieties. Thus, the company needs to expand its food choices continuously in order to maintain their position in the quick-service restaurant market. From the financial viewpoint, Tim Hortons had a total revenue of $3.3 billion in 2013, and that was quite below the financial earning of their competitors. McDonalds had a revenue of$28.1 billion, whereas Starbucks earned $14.9 billion globally and total sale of Dunkin Donuts was $7.4 billion (Schnarr & Rowe, 1-15). This shows the global competitive scenario for Tim Horton’s quick-service