Tim Hortons has succeeded over the years because it is consistent, reasonably priced, fast, and the product tastes great. They have placed focus on meeting existing customer demand by introducing a new, larger drink size and also by introducing a more varied drink menu.
One possible weakness is that Starbucks product is seen as having a more gourmet selection. Even with the introduction of lattes and more varied drinks at Tim Hortons, with their lower price points they are still seen as less “swanky” than the Starbucks version, and so may not appear to the more urban demographic. Overall though, at least in Canada, Tim Hortons still reigns in the coffee world.
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