David Clanachan Chief Operations Officer
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1 David Clanachan Chief Operations Officer
2 Building the brand
3 A History of Partnership Ron Joyce & Tim Horton
4 A Proud History Founded in 1964 in Hamilton, ON Focus on: Top Quality Always Fresh Product Value Great Service Community Leadership
5 From One to over 3,000 Store 100 Store 200 Store 300 Store 400 Store 500 Store 700 Store 1000 Store 1500 Store 2000 Store 2500 Store 3000 Thunder Bay, ON 1978 Hamilton, ON 1984 Calgary, AB 1987 Halifax, NS 1989 Alymer,, QC 1991 Moncton, NB 1993 Ancaster,, ON 1995 Pickerington, ON 1997 Toronto, ON 2000 Cayuga, ON 2003 Orchard Park, NY 2006
6 Category of One Iconic brand in Canada Powerful business model Franchisee relationships Broad and diversified product offerings Consistent delivery of freshness and price/value Appeal across all day-parts
7 Market Leader in Canada
8 Market Leader in Canada Largest QSR chain in Canada* 42% of the QSR sector About 40% of our customers visit 4+ times a week 80% of coffee, donut, gourmet coffee and tea sector #1 in breakfast day part #2 in the lunch day part *Based on market capitalization Source: NPD Group
9 Tim Hortons Tops List of "The Best Managed Brands in Canada" Canadian Business Magazine Survey
10 Menu Innovation Broad and diversified product offerings Continuous new products to meet changing consumer tastes Consistent delivery of freshness and price/value promise
11 Community Involvement
12 Sustainable Coffee Program
13 Exceptional Service
14 Everyday Value
15 Part of the Canadian Fabric
16
17 Based on a Tim Hortons True Story
18 Strong Growth Potential-Canada 2,821 Restaurants WEST Total Units 576 QUEBEC Total Units 358 ONTARIO Total Units 1521 ATLANTIC Total Units 366
19 Strong Regional Player U.S. 398 Restaurants MICHIGAN 98 OHIO 94 UPSTATE NY 103 ERIE, PA 5 MAINE 24 S. NEW ENGLAND* 66 KENTUCKY & W. VIRGINIA 8
20 Tim Hortons in Europe Over 200 locations in Ireland
21 Model is Simple and Scalable
22 A Taste of Home
23 We Fit Anywhere
24 and Come in All Shapes and Sizes
25 Non Standard Stores: Smaller stores, located in other facilities 2007 Non-Standard Restaurant Mix (Canada) Travel 60 Corporate 57 Education 120 Retail 91 Healthcare 79 Petroleum 391
26 Hospitals Princess Margaret Hospital Toronto, ON Credit Valley Hospital Mississauga, ON
27 Offices Sunlife, Kitchener, ON
28 Retailers Dominion Center Toronto, On Home Depot Oakville, ON
29 Retailers A & P Winchester, ON Loblaws Oakville, ON
30 Retailers Wilson Farms Syracuse, New York Tops Friendly Markets Buffalo, New York
31 Retailers Cineplex Etobicoke, ON
32 Gas & Convenience Esso Markham, ON Esso North York, ON
33 Gas & Convenience Shell, Ohio
34 Colleges & Universities University of Buffalo Amherst, NY University of Waterloo Waterloo, ON
35 Airports First location opened at Ottawa International in 1992 Today, there are over 30 locations Pearson International Toronto, ON
36 Airports Ottawa International Airport, Ontario Calgary International Airport, Alberta Vancouver International Airport, British Columbia Winnipeg International Airport, Manitoba St. Johns Airport, Newfoundland Edmonton International Airport, Alberta Halifax International Airport, Nova Scotia Saskatoon Airport, Saskatchewan London Airport, Ontario Pearson International Airport, Ontario Thunder Bay Airport, Ontario Pierre Elliott Trudeau Airport, Quebec Victoria International Airport, British Columbia Hamilton JetPort Airport, Ontario Hamilton International Airport, Ontario
37 Airports Airport locations are usually in high-traffic corridors, food courts or in-line kiosks Locations can be pre or post security Generally 500 sq ft or greater Seating is available where space permits
38 Airports Airport locations serve over 340,000,000 passengers a year Hamilton International Hamilton, ON
39 5 Commandments for Winning Keep Keep Be Be Your Your Formula Formula First First for for Success Success to to Fresh Fresh Market with with Market Look Look Forward Forward Never Never Good Good not not Backward Backward Enough Enough Take Take Risks Risks Keep Keep your your Formula Formula for for Success Success Fresh Fresh with with Change Change Take Take Never Never Good Good Enough Enough Risks Risks Look Look Forward Forward not not Backward Backward Be Be First First to to Market Market Change Change
40 At 211 degrees, water is hot
41 at 212 degrees, it boils
42 and with boiling water comes steam
43 and steam can power a locomotive.
44
45 From Scratch
46 Fresh thinking, Fresh technology, ALWAYS Fresh product
47 The Story Goes Upon completing a highly dangerous tightrope walk over Niagara Falls in appalling wind and rain, The Great Zumbrati was met by an enthusiastic supporter, who urged him to make a return trip, this time pushing a wheelbarrow, which the spectator had thoughtfully brought along. The Great Zumbrati was reluctant, given the terrible conditions, but the supporter pressed him, You can do it I know you can,,, he urged. You really believe I can do it? asked Zumbrati. Yes definitely you can do it. the supporter gushed. Okay, Okay, said Zumbrati, Get in the wheelbarrow
48
49 Our Niagara Falls Always Fresh Baking was our Niagara Falls Our Owners had to get in the Wheelbarrow Moment of Truth Making the Deposits allowed the Withdrawal to bet the Business Belief / Trust / Faith / Courage / Commitment / Conviction
50
51 Franchisees First
52 A Family Run Business Success of Tim Hortons comes as a result of Pioneering Franchisees Many Operators still with the chain today With strong Second Generation Operations Helped to build chain's foundation, store by store
53 Committed Franchisees Over 800 franchisees in North America Typical franchisee in Canada owns 3 restaurants has 9 years of service Committed to our system growth Invested over $75 million into Always Fresh baking system Support their communities
54 Importance of Our Store Owners Marketing Leadership Store Owners Product Brand Systems They are our Greatest Asset Making Deposits allows Withdrawals Put Your Oars in the Water & Row TRUST RESPECT LISTEN
55 Communication TDL Support Franchisee Store Owner Business Partners STRONG COMMUNICATION = STRONG CHAIN How Do We Communicate? Advisory Board Operations Convention Regional Meetings Portal Instant Memos & Guides
56 Operational Excellence Entire commitment from all stakeholders to be the best Store Owners TDL Support Network Work together to grow business Continuous and flawless execution of new products and services
57 Operational Excellence All stores supported by professional Operations Team Committed to helping all stores deliver on consistency of execution Continuous evaluation of business drivers Continual training on practical and theoretical skills Floor Leadership Speed of Service Customer Service Train the Trainer
58 The Need for Speed
59 Maintaining High Standards Training at all levels Store Owner Symposiums Manager Symposiums Manager Certification Program (AF MCP)
60 Maintaining High Standards Training at all levels Store level employees Online e-learninge Knowledge certification
61 Discipline How Do We Invest Together? How Do We Work Together? Never Good Enough Constantly Challenge and Re-Invent Ourselves Only as Good as your Last Shift
62 Q&A
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