Tim Hortons to open 120 outlets in region
Tim Hortons has signed a deal with a Dubai-based Apparel Group to open up to 120 outlets in the Middle East, starting with five this year.
The move is part of a wider plan to develop an international growth strategy, Canada’s largest coffee and doughnut chain said.
“Our top strategic priority is continuing to grow our Canadian and US businesses, which are the primary drivers of shareholder value,” said Don Schroeder, president and CEO of Tim Hortons.
“We also believe there is an opportunity over the long-term to explore international opportunities and seed the Tim Hortons brand in various markets outside of North America.
“Our approach is prudent, targeted and will minimize capital requirements while still allowing us to pursue identified international growth opportunities,” Schroeder added.
The agreement with Apparel Group includes both standard and non-traditional outlets in such Gulf Cooperation Council (GCC) markets as the UAE, Qatar, Bahrain, Kuwait and Oman.
The deal takes advantage of Apparel Group’s deep local market knowledge and real estate capability to build and operate the new locations, the company said.
Apparel Group operates more than 50 leading brands and 600 shops in 14 countries, including Tommy Hilfiger, Kenneth Cole, Ninewest and Canadian show chain Aldo.
“The GCC is an attractive market that provides significant opportunity. Our due diligence has identified the GCC as an international development opportunity for the Tim Hortons brand based on our Always Fresh premium coffee and baked goods offering, value positioning and friendly, efficient in-store experience.
“Our partners at Apparel have considerable knowledge of the local markets and consumer expectations and have introduced world-leading brands to the GCC,” Schroeder added.
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