The potential purchase of Tim Hortons by Burger King could ultimately be a very good way for Tim Hortons to put its focus back on what it does best – coffee and donuts.
Tim Hortons has been straying from its core business for a while. It has had a limited menu of sandwiches and soups, which until now have fit well into the operation. Recently it has added breakfast sandwiches, questionable hash browns and with rumours of expansion into other items, Tim Hortons is dangerously close to no longer being considered a quick-serve restaurant.
We’re already seeing longer lines and longer wait times, both inside and drive-through, that will soon turn off even some diehard Timmies fans. Sticking to the core business is a lesson that McDonald’s learned in the 90s when it tested personal and family-sized pizza at some of its locations. Consumers really liked the product but not the 11 minutes prep time.
If the deal happens, both Tim Hortons and Burger King will hopefully continue to operate as two separate brands and concentrate on their individual core businesses. Burger King will get tax savings through the formation of a Canadian holding company and, because Burger King is an international brand, Timmies will get the opportunity to take the coffee and donuts that Canadians love to the world.
