Thursday, July 14, 2011

Rural Development in Chains?

A FB friend recently lamented the arrival of Tim Horton's in Nipawin, SK.  Part of the argument was a distaste for the products and ambiance of Tim's.  The other part of the argument was that familiar to the anti-Wal-Mart element, about how big chains would over power the local merchants.  As someone interested in rural development, I had the following thoughts:

  1. Choice. If one doesn't like Tim's, one has the option of not attending the premises.  I, too, find the appeal of Tim's illusive.  I find them too small, usually not very clean, and the service level unpredictable.  Then again, I don't like coffee. However, whenever I do accompany my wife to one, it is invariably full of folks who seem to be enjoying their experience.  I suspect the same thing will occur in Nipawin.
  2. Jobs.  One of things rural communities need is jobs.  Tim's will provide these - all the way from part-time high schoolers up to the franchisee.  [The franchisee is often forgotten.  Here is someone bravely betting that they can create, manage, and sustain a local business.  One of their main challenges will be finding enough people (among those who claim to want "jobs") who can be sufficiently motivated to show up punctually and regularly, and deliver a level of customer service which will sustain the business.  I wish them well.]
  3. Opportunity. The other businesses in town in similar lines have the opportunity to compete on the basis of quality of product and level of customer service.  As mentioned above, Tim's has their vulnerabilities.  Perhaps, the local bakery can put in a couple of tables, brew some good quality coffee, and welcome their customers to "set a spell" and have some fresh baked goods with their coffee, or tea.  Is there a market for a tea house, for those who find Tim's a glorified cafeteria?  The other area of opportunity is in increased clientele for all.  Like Wal-Mart, I suspect Tim Horton's in Nipawin will bring in new customers from a wider geographic area and bring existing customers out more often.  Studies and experience have shown that this is usually the result of an addition to a community's retail sector.  It is the phenomenon that some call "increasing the size of the pie" rather than assuming there will be increased competition for a fixed sized customer base.
  4. Affordability.  I grew up in Lloydminster in the days before "the chains" came to town.  Groceries, for example, were provided by a couple of independents and the local Co-op.  Prices were always 10 - 15 % higher than in Edmonton, service was unpredictable, especially if you were not one of the in crowd, and some of the produce [especially at the Co-op) was of such poor quality it had no business being on the shelves.  So, we welcomed the day when Safeway came to Lloydminster.  Thanks to intelligent management, the Co-op eventually reacted and now-a-days competes well, including having a range of fresh produce which doesn't take a back seat to any of its competitors.  All of this is an example that overall, the cost of living improved because prices went down and the quality of products and services went up.  The same can happen in any small town - including Nipawin.

So, in conclusion, I say welcome to Nipawin, Timmy.  The vast majority of folks will find you a positive addition to the community, even if you are not exactly my cup of ... er  ... coffee.




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