STARBUCKS VS TIM HORTONS

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York University *

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Apr 3, 2024

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SCHOOL OF CONTINUING STUDIES POST-GRADUATE CERTIFICATE IN ACCOUNTING TIM HORTONS VS

STARBUCK S TIM HORTONS VS STARBUCKS VS SUBMITTED BY AYESHA HALARI 220830790 INTRODUCTION When it comes to enjoying a good cup of coffee in the morning, in the evening while taking a stroll through a park, or on a chilly winter day, there are only two things that come to mind. Not just any beverage, but a life-sustaining one for a

great number of people is coffee. Indeed, you're right—we're talking about Starbucks and Tim Hortons. Not just any beverage, but a necessity for survival for a great number of people is coffee. These two well-known coffee brands' names have been used in place of the word "Coffee". Because there is such a wide variety of drinks and food to choose from, these have been the ideal venues for social events as well as meetings. People can come to these places and work while enjoying their favourite coffee and snacks, acting as personal offices. TIM HORTONS Tim Hortons is not as well-known abroad as Starbucks, despite being a Canadian institution. However, you can visit any of its 4,846 sites spread over 14 countries. Jim Charade and Tim Horton founded Tim Hortons in Hamilton, Ontario. It was once a coffee and doughnut shop. In 1965, Ron Joyce assumed control of the first store and started adding more, solidifying his status as Horton's partner. Joyce took over as the business's sole proprietor following Tim Horton's death in 1974, and she rapidly expanded it. All of a sudden, Tim Hortons had outlets across the globe and a ton of new products. In terms of sales, Tim Hortons had surpassed all other fast-food restaurants in Canada by 2002. Even though the great majority of its locations are in Canada, there are a lot of stores in upstate New York and other American cities. STARBUCKS Starbucks is well-known for a variety of things, such as its unique drinks, hidden menu, and iconic place in American popculture history. This coffee shop has 32,660 locations across the 83 countries in the world. Zev Siegl, Jerry Baldwin, and Gordon Bowker founded

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Starbucks in Seattle, Washington, in 1971. It had minimal success in its early years as a coffee bean retailer until the group decided to sell the joint venture to Howard Schultz in 1987. To grow the company's clientele in the American Midwest and Northwest, Schultz rebranded his previously established coffee shops under the Starbucks brand. It continued growing and provided coffee that was ready to go. Starbucks began purchasing competing coffee shops as it expanded in order to offer specialty drinks like Frappuccino’s. Around the world, stores began to spring up, providing free WiFi, tea, plant-based milk, flavouring syrups, and meals. PROBLEM STATEMENT Starbucks offers good customer service despite its higher prices. While Tim Horton’s offers cheaper costs but subpar customer support. ANALYSIS FINANCIAL ANALYSIS PE Ratio

During the past 13 years, Starbucks highest PE ratio was 614.92. the lowest was 15.31 and the median was 29.34. During the past 13 years, Starbucks highest PE ratio was 614.92. the lowest was 15.31 and the median was 29.34. Starbucks' highest PE ratio over the previous 13 years was 614.92. The median was 29.34, and the lowest was 15.31. Tim Horton's greatest PE ratio over the previous 13 years was 44.25. The median was 28.98, and the lowest was 15.96. Current Ratio Starbucks' greatest current ratio over the previous 13 years was 4.22. The median was 1.52, and the lowest was 0.79. Tim Horton's greatest current ratio over the previous 13 years was 2.69. The median was 1.41, and the lowest was 1.05.

SWOT ANALYSIS A SWOT analysis examines a company's opportunities, threats, weaknesses, and strengths. A business like TIM HORTONS AND STARBUCKS can evaluate how its operations and performance compare to those of its competitors by using the tried-and-true SWOT Analysis technique. In order to understand SWOT analysis, we will receive a strategic study of TIM HORTONS AND STARBUCKS's internal and external environments. TIM HORTONS STRENGTHS  Tim Hortons ensures that a large number of customers can easily and quickly access its products thanks to its extensive network of locations in nearly every state.  Due to their competitive pricing without compromising quality, Tim WEAKNESSES  For the past two years, Tim Hortons has not carried out statistical research within the market it serves. Because of this, choices are made using data that is two years old, even though the client's requirements may have evolved.

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Hortons' products appeal to people of all income levels, unlike their main rival Starbucks, which is thought of as an expensive coffee shop.  Tim Hortons has made significant investments in the training of its representatives, which has led to the employment of a considerable number of bright and motivated workers.  Tim Hortons is probably accruing needless expenses for the business because it takes longer to buy and sell goods than is normal for the sector.  The organization's current proportion is below industry standards, indicating its ability to meet its short-term financial obligations. This may indicate that the company will experience cash flow problems in the future. OPPORTUNITIES  There has been a recent surge in transactions within the industry. This implies that a sizable portion of the population is presently making purchases online. By creating online stores and conducting business through them, Tim Hortons can generate revenue.  The legislature's decision to lower the charge rate will help Tim Hortons since less money will be deducted as expenses.  Globally, the number of people using the internet is increasing. This implies that by interacting with customers online, Tim Hortons has the chance to increase its online presence. THREATS  Internal competition has increased as costs have decreased. Tim Hortons might experience a drop in revenue if it adjusts to the value changes, but it might also lose some market share.  A few competitors in the industry pose a threat to Tim Hortons because consumers drawn to their innovations may choose to patronize their rivals, which would lower Tim Hortons' overall market share. STARBUCKS STRENGTHS  A strong reputation for the brand Starbucks Corporation is the most powerful and well-known brand in the food and beverage industry. Its size, volume, and number of loyal WEAKNESS  Expensive pricing For many middle- class and working consumers, Starbucks costs more than McDonald's and other coffee shops. Customers find it less affordable due to the high

customers have all continued to grow. As per the 2021 Interbrand ranking, the brand's worth amounts to $13.01 billion.  Outstanding financial outcomes Starbucks, with $29 billion in annual sales and a $4.2 billion profit in the fiscal year 2021, holds a strong financial position in the market. costs.  Potential for product ripoffs Starbucks doesn't offer the most unique merchandise. This makes it incredibly easy for rival companies to replicate the goods. Other coffee shops and fast-food restaurants, such as Dunkin' Donuts and McDonald's McCafe, offer nearly identical products. OPPORTUNITIES  The growth of developing markets The US is where Starbucks primarily runs its coffee shops. Globalization may offer the organization fantastic opportunities in developing countries like China, India, and even some parts of Africa.  Product Details and Diversification of Businesses It can further diversify its business operations to enhance the likelihood of overall income growth. Making products according to the tastes of customers in a specific target market is also a profitable option. THREATS  Competition from retailers of inexpensive coffee There are numerous coffee shops that provide goods at fair prices. This might put Starbucks' stability in jeopardy because of its higher prices.  Competition with large retailers Its competitive position in the market could be jeopardized by fierce competition from major players like Dunkin' Donuts and McDonald's. ALTERNATIVES  Costa Coffee  Dunkin Donuts  Peet’s Coffee  McDonalds  Mc Café  Yum China  Lavazza

CONCLUSION In the end, Tim Hortons and Starbucks are both great choices for Canadians. Given their unparalleled coverage and prices, it's hardly surprising that they continue to dominate the market after all these years. After reading this essay, we hope you will have a better idea of which side of the Tim Hortons vs. Starbucks debate you agree with. RECOMMENDATIONS  Reenergized are the phrases "Just Say Yes" and "Exceed the expectations of your consumers."  Spend time conversing with customers, going to coffee seminars, and acquiring knowledge about coffee.  Increase the time that new baristas spend in training. IMPLEMENTATION  Described the investments and initiatives made by and for global green apron partners and retailers.  By 2030, Common People Positive wants to raise the standard of living for one billion people worldwide.  Increased commitment to sustainability through new partnerships, technological advancements, and global initiatives to encourage reusability. REFERENCES https://en.wikipedia.org/wiki/Tim_Hortons https://en.wikipedia.org/wiki/Starbucks https://businessmodelanalyst.com/starbucks-competitors-alternatives/ https://iide.co/case-studies/swot-analysis-of-tim-hortons/ https://businessmodelanalyst.com/starbucks-swot-analysis/

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STARBUCKS VS TIM HORTONS

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