The Powerhouse That is Tim Hortons

For Canadians, Tim Hortons needs no introduction. It’s comparable to Dunkin' Donuts in the U.S., but arguably has a greater presence and superior menu options. While Dunkin' is absent in Canada, Tim Hortons reigns supreme.

If you’re from New York or other parts of the Northeastern U.S., you may have encountered a Tim Hortons. The brand has gradually expanded its reach across the U.S. and internationally.

Tim Hortons' origins are humble; founded by NHL player Tim Horton in Hamilton, Ontario, in 1964, the first shop served coffee and donuts. It swiftly gained popularity, evolving into a multi-million dollar franchise by the late 1960s. Following Horton's tragic death in 1974, his partner Ron Joyce took the helm, expanding the menu to include soups, sandwiches, and breakfast items.

By the 1990s, the company had rebranded as TDL Group Ltd. and merged with Wendy's. An IPO in 2006 propelled Tim Hortons past McDonald's as Canada’s largest fast-food operator, capturing 22.6% of the country's fast-food revenue. By 2013, the chain boasted over 4,300 locations globally and revenues nearing $800 million. After merging with Burger King in 2014, it further solidified its presence with revenues exceeding $4 billion in 2015 and $4.15 billion in 2016. By 2018, the chain expanded to nearly 5,000 locations across 14 countries.

Despite its growth, Tim Hortons retains a distinctly Canadian feel, functioning like a neighborhood coffee shop where terms like "Tims," "Timmies," "double-double," and "Timbits" are woven into everyday conversation.

The Impact of the Pandemic

The global pandemic dealt a severe blow to many businesses, with restaurant chains like Tim Hortons particularly vulnerable. The fast-paced, grab-and-go nature of its service meant that when people were confined to their homes, the usual foot traffic—and revenue—diminished significantly.

Sales fell from $6.7 billion in 2019 to $5.4 billion in 2020, while revenue plummeted from $3.34 billion to $2.81 billion during the same period, marking an 11% decline. It became evident that a strategic shift was essential to enhance their digital presence, attract younger customers, and reclaim lost ground.

Bieber to the Rescue!

Regardless of personal opinions about Justin Bieber, his influence is undeniable. With a staggering 200 million followers online, his words can generate significant reactions. A simple tweet criticizing Tim Hortons' coffee cup lids once prompted widespread feedback, leading the company to make changes.

This presented an opportunity for collaboration. Given Bieber's Canadian roots and his long-standing affection for the brand, a partnership seemed like a natural fit. The idea was to launch a signature line of "Timbits" inspired by Bieber.

While the origins of the Timbit—a donut hole—are debated, it's known that they were introduced in 1976 and quickly became a favorite, especially among children. Bieber embraced the new promotion, which featured three special flavors: sour cream chocolate chip, white fudge, and birthday cake waffle, along with a line of Bieber-themed merchandise.

The campaign generated immense excitement. Upon launch, I noticed unusually long drive-through lines at my local Tim Hortons. Regularly busy, the drive-through was abuzz with even more traffic than usual. I must admit, these new Timbits were exceptional, surpassing my expectations.

The Remarkable Recovery of Tim Hortons

I initially wondered if the local fervor was due to Bieber's hometown ties, but the response was nationwide. The marketing blitz featuring Bieber garnered extensive exposure, with constant commercials and heightened social media engagement, particularly among younger demographics who previously viewed Tim Hortons as more of a parental stop.

Thanks to the Tim-Biebs campaign, Restaurant Brands International announced a 10.3% sales increase in the fourth quarter of 2021, effectively reversing the 11% decline from the previous year. The CEO highlighted that the Bieber collaboration exceeded their expectations.

Traditionally, Tim Hortons has partnered with NHL players, but this collaboration with Bieber marked a new chapter. Customers who had drifted away rediscovered the brand, driven by curiosity and the allure of new menu items.

Key Takeaways

Tim Hortons effectively leveraged its celebrity association without straying far from its core identity. Instead of introducing a plethora of new products, they enhanced an existing favorite with a localized touch. The collaboration with Bieber was timely, coinciding with a return to routine as restrictions eased, and his presence sparked curiosity.

While curiosity certainly played a role in drawing people back, the quality of the Tim-Biebs product itself delivered beyond expectations. Tim Hortons succeeded in keeping things simple while also harnessing a natural partnership that had long been available.

This campaign proved to be a resounding success, raising questions about future celebrity collaborations in the food industry—especially in Canada. However, the unique factors surrounding the Tim Hortons and Bieber connection may be challenging to replicate.

Though I don’t typically frequent Tim Hortons, I've found myself eager to grab some Tim-Biebs—a surprising turn of events!