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Julia Hemphill is the kind of client that Tim Hortons would like to see more: a professional and urban millennium.
But she admits that she is not the type to do everything possible to visit the chain, noting that her coffee purchases are largely motivated by the convenience: "If I pbad a Tim Hortons, I pbad a Tim Hortons . If there is training, I will not go there. If it's not the case, I'll do it.
The 39-year-old and her three companions nonetheless joined a crowd of curious customers who lined up at the brand's much-touted "innovation café" this week to sample a range of beverages and badtails. specialty donuts more typical of upscale restaurants.
Hemphill ordered the nitro coffee – "It's actually a very good result," she says – and approved the modern decor consisting of faux marble tabletops, walnut trim and velvet banquettes.
"It had stagnated a bit before. It's nice to see it new, "says Hemphill.
But as she returns to the menu, coffee is not likely to become her meeting place.
Hemphill, at the end of the millennia cohort, says she is more likely to meet friends for a badtail than a coffee, which she usually brings back to her office: "Coffee is a job".
Such ambivalence is why Tims and many other fast-food restaurants are rethinking how to reach Millennials and Generation Z customers, experts say, citing similar shifts at McDonald's, Boston Pizza and Panera Bread.
The coffee chain experience is presented as "a modern interpretation of the Tim Hortons brand". Its 12 "Dream Donut" flavors include maple bacon, blueberry hibiscus, hazelnut butter cream and a variety of brown butter and sea salt, each priced at $ 1.99. double the cost of regular flavors.
Tims' Global Marketing Manager recognizes the store's sleek design and the Instagram-ready treats are designed for young urban professionals: "They're looking for a store like this, they're looking for a design like this," says Schwan.
However, he insists that the rest of the chain's drip coffee has been proven and that the Timbits are not going anywhere: "Our target group is Canada."
Specialty sweets and high-end sandwiches are only available at the King Street store, along with seven different brewing methods including single-origin worms and cold beverages. If they are successful, they could be deployed in other restaurants, says Schwan.
The tactic also allows Tim Hortons to see how far it can extend a brand known for its unadorned products with matching prices.
Vince Sgabellone, an expert in the foodservice industry, says the fast-moving market in general has been evolving for some time, allowing Tims to test more expensive items at prices that can still be considered relatively low.
"Starbucks (is) perhaps already one of the most expensive drinks establishments, then they released their" reserve "brand that is even more expensive. I've had a $ 9 coffee there it's not so long ago, "says Sgabellone of the NPD Group.
"There is room for this premiumization. People are willing to spend a little more for fast service, provided they get the quality and service they expect with the high price. "
Tims' "innovation cafe" is clearly not meant to appeal to his usual customers, but to attract people who would otherwise not attend a traditional Tim Horton, he adds.
Like McDonald's McCafe, which focuses on urban areas, the Tim Hortons experience has brought the brand closer to fast-casual dining, where high-quality foods are accompanied by a restaurant service. faster and better value, adds Mr. Sgabellone.
This segment of the market is growing about 8%, while all fast-food restaurants are only growing by two to three percent, says Sgabellone.
Susan Weaver, Brand Expert, adds that customers are "trading" more and more mid-range full-service restaurants to these fast-service outlets, as they look for better value for money.
It highlights the upscale food courts that have reinvented catering in shopping malls, as well as the McCafes, each offering unique menus and artisan sandwiches.
Millennials are a particularly sought after market because of their size, their greater disposable income, their tendency to eat out and their desire for convenience, says Weaver, Executive Director of Pearl Strategy & Innovation Design Inc. .
But they are unstable, she adds.
This younger group wants customizable drinks, in-store technologies such as charging stations, eco-friendly packaging and the ability to have their food badembled and their beverages prepared – all the features of Tim Hortons' new business.
The problem for Tim Hortons, she says, is that he is loved by baby boomers and considered "the mark of your parents".
And the fact that "Tim Hortons is probably getting 80% of its profits from hot coffee and the millennials are not drinking that," says Weaver, whose company in Oakville, Ontario, has worked with Tim Hortons before. on his menu for lunch.
"We worked a lot for Tim Hortons and we always told them," You may have to change the brand if you want to go to (the millennial generation). "
She spoke of the possibility that the future of Tims' innovation café is the future, suggesting that the brand should expand the concept as a separate offering for Generation Y in all major cities.
Sgabellone would not be surprised if the experience evolved into "a small niche sub-brand".
"They declare from the outset that it's unique, but as with any brand, if it's a success, they'll make it two and six and they'll open more."
Cbadandra Szklarski, Canadian Press
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