Question

executive summary of restaurant

Answer 1

Tim Hortons is a Canadian coffee and donut juggernaut Company whose line of activities fall into the category of Food and Beverages. It is the largest fast food restaurant chain as of Dec 31, 2016, spread with 4,000 outlets across 9 different countries. It was founded by Tim Horton, in Hamilton, Ontario, in 1964. However, in August 2014, the multi-national restaurant Giant, Burger King, purchased Tim Hortons for U.S. $ 11.4 Million. Burger King is the subsidiary of Restaurants Brands International. With 42% of total market share, it flaunts more than 15 next big chain of fast food joints in the Canadian market. Thereby commanding a majority of baked food and coffee in Canada. Beating the Mc Donald's and Starbucks, its major competitor, Tim Horton stands at the no.1 position on the Canadian Business List.

With its take-over by Burger King, Tim Horton is now the third-largest fast-food chain in the world. Right from the first quarter of 2014, its dividend share has been constantly on a rise. The fiscal turnover year on year basis in terms of free cash flow has successfully covered all dividend payments over the years, thus strengthening the image of the Company even further. Transparency with regards to its Nutritional value is specifically mentioned in the two-page brochure of the Company which can be easily available from the online website. The restaurant chain is expanding is business well across the globe from Canada, U.S. to the Gulf countries as well.

However, not all its Franchisees has been successful enough to boost the business of Tim Hortons which was evident when there was a news floated in the market from prominent source that the Franchisees were forced to sell the Lunch items from the menu at a lower price thus incurring losses. Moreover, higher competition resulted into closure of various outlets of the Company in the north-eastern zone of the U.S. In addition, certain blogs also complained that there was lack of transparency in terms of the green beans' coffee that the Company procures from as well that they lack organic coffee and were allegedly not selling Fair Trade Coffee. Besides, Tim Hortons' products does not suit the audience of 'Health-conscious' society which is one of the restaurant’s demerits. In spite of such limitations, innovations in the market has resulted into Tim Hortons' coming up with K-cup home coffee products, experimenting with new blends of coffee, cashless payments and quick-service lines to cater to long queues of customers. Also, the concept of 'Brunch' has emerged of late, in a significant way, thus demanding a 'Break-fast menu' all day long. Tim Hortons can hence avail the benefit of Breakfast menu all through the day. It is also speculated to give a major competition to Mc Donalds if Tim Hortons emphasizes upon the growing awareness of Nutritional food products in its product lines, especially with that of Lunch menu, soups or baked products. In our study, it was also found out that it can also expand its business in area such as south-east Asia wherein a diversified population might like to opt for such innovative products, bearing good nutritional value as well.