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    Canada's Tim Hortons Expands Southward

    Donut and sandwich chain spent $12 million on media in U.S. last year.

    By Noreen O'Leary

    New York – Tim Hortons, the huge Canadian donut and sandwich chain that is largely unknown in the U.S., has been expanding its footprint south of the border of late and appears to be using the market as a testing ground. So far, Tim Hortons' media spend has been modest. Its outlay on measured media last year was $12 million in the U.S., which is a good $100 million shy of what Dunkin' Donuts spent. But the chain, named after a star hockey player, has been throwing body checks at its rival lately.

    This summer, for instance, Tim Hortons entered New York City by buying up old Dunkin' locations. The move gives it a presence in highly visible locations like Times Square, Penn Station and Herald Square, and capturing the attention of bloggers and media, including several articles in The New York Times.

    Tim Hortons (the name lacks an apostrophe) opened its first U.S. location in Buffalo, N.Y., in 1984, but lately its U.S. expansion has been picking up.

    David Clanachan, Tim Hortons' chief operations officer, U.S. and international, said he's seeking out high-traffic areas in airports, hospitals, colleges and sports stadiums. (Two weeks ago, Tim Hortons opened a restaurant at Fort Knox, the first U.S. military location for a company that already has operations on seven Canadian bases and in Kandahar, Afghanistan.)

    As for brand positioning, Hortons will attempt to lure Dunkin' customers with an emphasis on fresh products. In Canada, the ubiquitous brand—where a "double double" (coffee, two creams, two sugars) and cruller is a morning ritual—uses the tag "Always fresh. Always Tim Hortons." In the U.S., it's "Tim Hortons: Where quality meets value," and advertising features product shots of the latest promotional items. (JWT, Toronto, handles both campaigns.)

    The brand also got a shout-out last week when it was integrated into an episode of CBS' How I Met Your Mother, with its setting in Canada. The placement was initiated by a writer on the show who comes from Canada.

    Glen Hollis, vice president, national advertising, said there's more to the brand than freshness, in Canada, at least. "There's more of an emotional attachment and sense of belonging in the way we connect with our customers," said Hollis. "Tim Hortons is always a part of your life, which is a little different from just a focus on freshness."

    -- Nielsen Business Media

    By Noreen O'Leary
    • About Noreen O'Leary

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