Canada’s favourite coffee – why the shift?

On the 22nd of October 2017, MSN Money reported that McDonald’s McCafe Coffee is now Canada’s favourite coffee chain. Tim Horton’s, which I think most people would assume to be the front runner in this contest was FOURTH! Second Cup and Starbucks were second and third respectively. In 2014, Canadian Business reported that Timmies was #1 for coffee and the Tim Horton’s brand was rated #2. I came up empty handed for 2015/2016 results, but the slide from 1st to 4th in three years is dramatic for the franchise that is really a Canadian cliché.

Having grabbed a lunch at Tim Horton’s just the day prior, this got me thinking about WHY? I thought it was proper to do some quick data collection on the product itself. I stuck to just looking at the medium size as I already drink way too much coffee and to keep my physician happy I drink half-decaf now. As I suspected, size, price, and rewards, Mikkie D’s edges out Tim’s.

McDonalds Tim Hortons
Size (medium) 442 ml 425 ml
Price $1.75 $1.79
Taste Awesome Meh*
Recyclable cup? No No
Recyclable lid Yes Yes
Cup construction Double wall Single Wall
Lid Construction Easier to open/stays open Lid doesn’t stay open consistently (for me)
Loyalty program Yes (Buy 7 get 1 free) No
Rewards Monopoly Roll up the Rim

*Yes – taste is totally subjective

I was a faithful Timmies drinker until around 2010 when I was on a trip to New Brunswick (Yes – Gagetown for the military folks) and McDonald’s had one of their free coffee giveaways for the entire two weeks I was there. Being a frugal fella, my mates and I picked up our free coffees every morning and discovered that the new McDonald’s bean was pretty darn good. But that wasn’t all.

cup1There is a human factors engineering aspect to this too! It’s all about the CUP and the LID. Props to Timmie’s for the Canadian hockey logos at the bottom (Go ‘nucks).

For whatever reason, my fingers have always been pretty sensitive to heat and I need to let a Tim Horton’s coffee sit for five minutes or so before I can comfortably hold it. Those little cardboard sleeves help – but they fall off all the time and are generally a pain. Poor engineering. The McDonald’s cup on the other hand has TWO walls and doesn’t toast my tender fingertips. Far superior engineering. Human Factors Engineering which is one of the components performance analysts consider when looking at workplace performance problems. Even though the ml of coffee is only different by 17 (just a few drips) the McDonald’s cup LOOKS a lot bigger too eh!?

Now, the lid. The Timmies lid is left, McDonald’s right. I have always had troublecup2 tearing open the Tim’s lid and getting it to stay open with that little bump thing in the middle. It never seems to work quite right. The McDonald’s lid just flips back and sticks – every single time. Again, better engineering. Added bonus, the double walled cup seems to keep the coffee hot longer. I haven’t measured this – so that’s anecdotal. So we have looked at the product, the design… let’s consider service and the value proposition. Remember when I was in New Brunswick in 2010? Tim Horton’s was king of coffee. Even with the free give away at McDonald’s, cars were lined around the block for a double-double. My pals and I couldn’t figure it out, but we were happy our line was short. Did I mention it was free? Oh yeah – I did.

I have noticed over time that the service at Tim Horton’s has declined somewhat. Again – no science here – this is just my experience. Yesterday – they gave my sandwich to someone else and after three people behind me got served I asked where my meal was… they had no idea, but there was this crispy chicken sandwich that no one wanted – no doubt belonging to the fella that scooped my ham and cheese. Disappointing. Then there are those lines! I am always amazed at how long the lines are at the Tim’s drive thru compared to McDonald’s (anecdotal). I know both chains study this stuff and they time loyaltyeverything. I would love to see the data from both to see who is ahead. I think I know the answer.

Finally, let’s consider the value proposition. 442ml for $1.75 vs 425ml for $1.79 – but you also get the 8th cup free at McDonald’s. That drops the price per cup to $1.53 (if you collect those stickers – and I do.) See. Only one to go.

In summary, less expensive, more coffee, better cup, better lid, cool fingers and a taste I like better. I know – taste is subjective. The rest of it though is quantitative. If service is slipping like I have experienced personally (anecdotal) then that is just further exacerbating the issue. That’s my back of the napkin analysis.

If you found some value in this post – please feel free to “like” and “share!”

 

 

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