“I am proud to be from Canada.”
This advertising slogan was posted on the official social media account of Tim Hortons, a Canadian coffee and donut chain, on Feb. 5 (local time), when anti-American sentiment was rising in Canada due to the U.S. government's 25% tariff imposition.
Many people thought it was just a mischievous joke when Donald Trump, during his time as president-elect, referred to Canada as the 51st state of the United States and the Canadian Prime Minister as a governor. However, tensions between the two countries have reached unprecedented levels, known to have escalated beyond retaliatory tariffs to insults exchanged between leaders, with Canadian citizens voluntarily boycotting U.S. products. Across large supermarkets in Canada, labels reading “Made in Canada” are attached alongside the red maple image, a national symbol of Canada. Cafes in various regions of Canada are using the name “Cana-diano” instead of “Americano.” Online, posts are surfacing about the cancellation of trips to the U.S. or subscription cancellations to U.S. companies like Netflix.
Tim Hortons, Canada’s national cafe, is not about to miss this golden opportunity for “patriotism marketing.” Tim Hortons, also known by nicknames such as “Tims” or “Timmys,” can be easily understood as “Canada's Dunkin’.” The menu items have slight variations, such as 'Munchkin,' which is called 'Timbits' at Tim Hortons. There are, of course, unique coffee and donut menu items that are hard to find elsewhere. A typical example is the 'Double Double' coffee and the 'Canadian Maple' donut, which includes Canadian maple syrup. 'Double Double' means 'two sugars and two creams' in our terms, making it sweet enough to rival traditional coffee.
Tim Hortons was founded in 1964 in Hamilton, Ontario, Canada, by Tim Horton, a defenseman who played for the Toronto Maple Leafs and Pittsburgh Penguins in the National Hockey League (NHL). Its headquarters is currently located in Toronto, Canada’s largest city. Shortly after founding the company, Horton met Ron Joyce, a former police officer, to go into partnership. Unfortunately, Horton passed away in a car accident at the age of 44 while still active. Joyce subsequently acquired management rights from the Horton family and aggressively expanded the business. Canada is one of the overseas markets where Starbucks has been unable to dominate due to local brands.
Tim Hortons operates over 6,000 stores in 22 countries, including the U.S., China, the U.K., Spain, India, Saudi Arabia, and the United Arab Emirates (UAE). In Korea, it will open its first and second locations in Shin Nonhyeon Station and Seolleung Station in December 2023, marking its seventh entry into Asia. Currently, there are 16 stores mainly in the metropolitan area, with plans to add two new locations by April. However, more than 60% of its stores are in Canada. If you fall asleep in a car heading to Canada and wake up to see Tim Hortons signs outside, you are certainly driving through Canadian territory.
Tim Hortons' sales for 2024 are projected to be $4.004 billion (approximately 5.9388 trillion won), increasing each year since 2020. What could be the driving force behind Tim Hortons' steadfast position as Canada's national brand for over 60 years?
Success factor 1┃Attractive founding story
Ice hockey is Canada's national sport. Of the 35 million people in Canada, over 500,000 are officially registered ice hockey players. There are 3,500 indoor and outdoor rinks throughout Canada, and many households have mini rinks in their backyards. Given this situation, the fact that the brand was founded by an NHL player inevitably contributes positively to brand awareness and likability. Although it is a great misfortune that the founder Horton passed away during his playing career, it has endowed the brand with an immortal aura.
The partnership between an NHL star and a former police officer is also an attractive story element. In North America, police are inextricably linked to donuts. It's so prevalent that “donut house” is widely used as slang for “police station.” For reference, the slang for “police” is “donut eaters.” This term became popular due to its frequent appearance in Hollywood movies as the snack of choice for cops on stakeout.
Success factor 2┃Advertising campaigns focused on customer experience
Tim Hortons' advertising campaigns align well with the image of the founder. Horton's playing style during his time as a player was far from flashy. However, he played calmly and robustly for an impressive 31 seasons. This was only possible because of the deep trust he had with his coach and teammates. This image has become a core value of Tim Hortons.
Tim Hortons' TV commercials closely resemble Horton's playing style. They do not feature famous celebrities or bombastic praise about taste and service. Instead, they tell stories about ordinary daily life through the voices of customers.
There are immigrants waiting for their families at the airport, and mothers returning home after sending their young sons to hockey practice in the cold early morning. A notable TV advertising campaign titled “True Stories” aired for several years since the late 1990s and achieved unprecedented success. Most of these types of TV campaigns focus on coffee rather than donuts. While Dunkin' does something similar, it makes sense considering that over 60% of Tim Hortons' sales come from coffee.
Success factor 3┃Unusual prize events
Tim Hortons' ‘Roll Up the Rim’ event, which begins every February, is one of the most successful prize events in fast food history. It has been ongoing since 1986, lasting over 30 years. Over 5 million prizes have been offered through this event so far, with prizes ranging from cars and TVs to donuts and coffee.
The participation method is simple. When customers order disposable coffee cups in stores, pulling up the rim at the top reveals whether they have won. Unlike events at other fast food chains where one must use the stores a certain number of times to qualify, Tim Hortons allows anyone who buys a cup of coffee to try for a prize, which has significantly boosted sales growth.
Success factor 4┃Community-focused social contribution activities
Tim Hortons operates a foundation that supports low-income children in both the U.S. and Canada in various ways. It also runs camps to cultivate responsibility and leadership skills in children. One day a year is designated as “Camp Day,” with all profits from that day going toward summer camp costs for children. During the year-end holiday season, spontaneous donations from store owners enable free skating events across regions. Additionally, proceeds from the sale of $1 “Smile Cookies” are donated to various hospitals and charities to help local children.
Plus Point
Is it really a Canadian corporation? Reasons for the controversy.
When strictly considering ownership structure, there is room for debate about whether the current Tim Hortons can be viewed as a 'Canadian corporation.' This is because Restaurant Brands International (RBI), the parent company of Burger King, acquired Tim Hortons for $11 billion (approximately 16.17 trillion won) in 2014. The largest shareholder of RBI is the Brazilian private equity firm 3G Capital. At the time of the acquisition, 3G Capital held a 47% stake in RBI. However, as of Dec. 31, 2024, their equity stake has decreased to 26%. The combined equity of Canadian financial companies and investment firms, such as Toronto Dominion, Bank of Montreal, and Royal Bank of Canada, now maintains a stake similar to that of 3G Capital. In Korea, the Hong Kong-based private equity firm Affinity Equity Partners, the parent company of Affinity, shares operational responsibilities for Tim Hortons with Burger King. For this reason, when Tim Hortons posted on social media that it is “proud to be from Canada,” it sparked controversy over its nationality. However, most business scholars and corporate experts still recognize Tim Hortons as a “Canadian corporation,” arguing that its headquarters and many stores originated in Canada, employing about 100,000 people in Canada and occupying an important part of Canadian lives and culture.