Tweet

Lesson #3: Create a Fresh Focus For Your Company

Article Overview: The moment Joyce assumed ownership control of Tim Hortons, he knew something had to change. His hockey star partner had a good idea in the coffee shop, but its success – or lack thereof – was speaking for itself. Joyce did everything he could to turn things around, from expanding the food menu to include sandwiches and altering the doughnut recipes, to adding iced cappuccinos to the drink list. But it was not until Joyce stumbled upon a unique business practice that the chain would begin to take off. The company’s new motto? “Always Fresh.”

Lesson #3: Create a Fresh Focus For Your Company

The moment Joyce assumed ownership control of Tim Hortons, he knew something had to change. His hockey star partner had a good idea in the coffee shop, but its success – or lack thereof – was speaking for itself. Joyce did everything he could to turn things around, from expanding the food menu to include sandwiches and altering the doughnut recipes, to adding iced cappuccinos to the drink list. But it was not until Joyce stumbled upon a unique business practice that the chain would begin to take off. The company’s new motto? “Always Fresh.”

Joyce wanted Tim Hortons to stand out from all the other coffee chains that he knew he was up against. To do that, Joyce implemented a new set of business practices that focused on keeping things “Always Fresh.” For Joyce, that was not going to be just a motto; his company was going to live and breathe “Fresh.”

To that end, Joyce began to insist that all Tim Hortons coffee pots be cleaned three times a day and that no coffee be older than twenty minutes from the time the brewer stops dripping. All grounds were also to be thrown out immediately afterwards. That way, no extra water would drip into the coffee. Joyce thought that insisting on these rules would allow the flavour of his coffee to be at its best.

Although coffee was still the cornerstone of Tim Hortons, Joyce wanted this freshness to be replicated throughout all of the store’s stock. The temperatures of all cheese products and sandwiches were to be checked every other hour, as with soups. Donuts were to have a shelf life of no more than eight hours and could also be made to order. Bagels and other breads were also to be sold for no more than eight hours after they were made, while cookies, danishes, and croissants could go up for twelve hours. Only enough cakes for a given day were to be baked in any one store.

Joyce’s principle was based on making less, more often. He wanted Tim Hortons customers to get the best products all the time. He wanted the chain to develop a strong reputation for high quality, to be a place where patrons knew they could always go for a fresh experience.

A few years after Joyce had left the business, a newspaper reporter discovered that Tim Hortons had actually begun using frozen dough for their doughnuts rather than making it fresh at each store in the mornings. Furious with the new management’s decision to pull away from his “Always Fresh” motto, Joyce publicly criticized the company. “The idea of using frozen products thoroughly disappointed me,” says Joyce. “It wouldn't be done in Tim Hortons restaurants if I still owned the company, even if, in the long run, it may have been the best way to operate the chain.”

Joyce understood that it was Tim Hortons’ reputation for freshness that kept customers coming back for more. And, there was no price that could be put on that.

Related Articles
  Branding Lessons from the \"Jersey Fresh\" Tomato
  Cutting Out The Cancer In Sales/Management
  Build Your Confidence-Make More Sales
  Home Business Expert: How To Advertise Innovative & Fresh Ideas
  Who Is Your Proud Family?

Article Tags: breads, business practice, cappuccinos, cheese products, coffee pots, coffee shop, croissants, danishes, donuts, doughnut recipes, drip, eight hours, flavour, food menu, freshness, hockey star, joyces, shelf life, tim hortons coffee, twelve hours



Related Forum Posts
Q&A: What are your tips for creating a successful blog? - Q: What are your tips for creating and maintaining a successful blog? Hi Ayaan - here are 7 suggestions for you: 1) Focus on a niche - pick an area that you're an expert in and are interested in and stick to that niche. 2) Create pillar content - write a number of posts that are evergreen and interesting. If a new visitor checks out your blog it should be easy to quickly find your pillar content and get them interested in reading more. 3) Create a list - give an incentive to readers to subscribe to your blog by entering their email address. This way you can turn one time visitors into lifetime readers. 4) Have a regular posting schedule - bloggers often post like crazy when they first start a blog and then their schedule fades. Don't start with too many posts and create a schedule that you can't stick with. 5) Build linkbait posts - timely posts that use infographics, top 7/10/50 lists, newsworthy topics, etc can generate a lot of attention and links to your blog. 6) Tweet it out - whenever you post, tweet about it so your followers know to check out your new entry. 7) Engage other bloggers - comment on other blogs that are in your niche. If you focus on adding value then the bloggers will notice you and their readers will also click through to your site. Good luck!
How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
Re: Hello, I'm brand new - Hi Fresh! Welcome to this forum - you will find some very helpful and friendly people here. Ros
Re: About: product production! - Dear Fresh Goods, You post always sound optimistic. That is good. Do you have a working prototype of your invention?
Re: Quote of the Day - ?"Where focus goes energy flows." - Tony - Focus on a single task, eliminate millions of disractions


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Entrepreneurs and the “Oh! No!” Trap

10 Steps to Excelling at Franchise Sales

Earn More Money - Easy Home Business Ideas

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.