Full disclosure: this is how I decorate my desk. Mathew Katz
By now, you've probably already heard about the big Canadian news of the week: Tim Hortons, the venerable Canadian coffee-and-donuts-shop, expanded into New York City, opening 12 locations in Manhattan and Brooklyn on Monday. More locations are coming to the city in August.
It may seem like a risky move: gambling an entire franchise's success in the U.S. by suddenly opening up in the country's most high-profile market during a recession when Americans are hesitant to spend, but it might be smart one. We've already written about the slow Canadian takeover of the American economy. Tim Hortons' expansion represents something bigger -- a move by some businesses -- not just Canadian ones -- to take advantage of the recession in a bid against much-larger, well-established competitors.
On the coffee front, McDonalds has found the recession to be an optimal time to challenge Starbucks, which saw a 77 percent decline in profits last quarter. The auto industry has already begun a transformation, with electric car makers and foreign manufacturers eager to grab a piece of the wide-open American market. Like Tim Hortons, Indian automaker Mahindra & Mahrindra has even taken advantage of its competitor's old facilities: Tim's took over Dunkin Donuts locations, and Mahindra is taking over former GM and Chrysler dealerships.
The shrinking of many large corporations is also making it easy for competitors to enter the market. A sudden plethora of Class-A retail space - means smaller businesses can move into prime locations for relatively cheap.
categories: Canada
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