Sunday, August 4, 2013

Why free Wi-Fi is bad for Tim Hortons business

Tim Hortons is a Canadian coffee shop chain that's bigger than McDonald’s in Canada.
Following Starbucks' example they recently introduced free WiFi.
Was it a good idea? I do not think so.

A typical Starbucks shop has just a few customers sitting around and sipping coffee. A few extra people with laptops and tablets just make this place more inviting. Apparently having free WiFi is good for Starbucks' business.

On the other hand, a typical Tim Hortons is overcrowded during peak hours. Almost all tables are often occupied by customers.
When free WiFi brought additional people who just occupy tables and do not buy coffee, many Tim Hortons shops completely ran out of free tables during peak hours (from about 8:00 AM to 3:00 PM). This led to a significant decrease in customer satisfaction (according to an unscientific survey of my friends). Quite a few regular patrons stopped coming to Tim Hortons and switched to competing chains because they were no longer able to find tables. I have not completely given up on Tim Hortons myself but I am thinking about it.

Do you still believe that free WiFi was good for Tim Hortons' business?

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