ANSWERS: 3
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Even with a quality product, investment can be risky. I think they are right that America will respond well to Tim Hortons, as it simply has better quality product. It is the best "normal" coffee I've ever had from a chain and the donuts are consistently good. Starbucks caters to a different market, though Tim's might be able to chip away at the people who aren't looking for jazz and five dollar drinks and just want a decent cup of coffee. McDonalds is all confused trying to compete with Starbucks by adding Hershey syrup to their coffee and calling it a "mocha" and their regular coffee was actually better before the whole McCafe garbage began. Dunkin Donuts is really the main competition as a working class coffee joint, but I think Tim's can win out with it's comfortable atmosphere and coffee that actually tastes like something. After the recent John Goodman/Rachel Ray backed repackaging and expansion of Dunkin Donuts, I think they might have overextended themselves. The video mentioned how many were closing in NYC. Maybe people are finally realizing that all that flashy orange and pink doesn't make the atmosphere charming, or the coffee drinkable. All that being said, investment is always risky, especially when many Canadians probably feel the way I do and are looking to get on board, which will probably inflate share prices. Time will tell, but as a Tim's lover living 40 miles from the closest one here in the US, I'm hoping they do well.
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Personally, I would not invest in coffee at the moment. I feel the pendulum has swung too far in the coffee business. People who are serious about their health do not drink coffee all that often. And more and more people are getting serious about health all the time. Just my opinion, but feel free to do what you like. Just remember, you're taking a chance. Don't put all the eggs in one basket.
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Absolutely - it's rate of growth is fantastic, it's product is very popular, and they constantly turn a profit. I've been toying with the idea of running a Timmy Ho's franchise for years.
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