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Tim Hortons (NYSE:THI) in Major 900-restaurant Expansion by 2013


Sunday, March 7th, 2010

Tim Hortons (NYSE:THI) isn't sitting around waiting for anything to happen, as it has entered into a new expansion phase which isn't minor by any stretch of the imagination, as the company has a goal of opening another 900 restaurants in the North American market, with over 300 of them targeted for the United States.

In Canada the business doesn't have to do much when opening a new store, as the name is so ubiquitous and well-known that just slapping on the front of the business is enough to bring it success in most cases.

As the Canadian-based company expands into other markets though, things aren't as simple as that and their strategies must change to gain significant market penetration and success.

In the U.S. storefronts to be opened, they'll be branded as Tim Hortons Cafe & Bake Shop in order to communicate exactly what it is the business is, does and offers. Again, in Canada there's no need for that, but in other markets the company must take these types of steps if they want to be successful.

The operational strategy as far as where the company will open up U.S. stores will be to target states that border Canada, as the many visitors from the U.S. to Canada, in many cases, are aware, in general, what Tim Hortons is and what they do. So that gives a nice push into the market which isn't from scratch, as it could be if they launched in the southern part of the country.

Canadian Tim Hortons cater more to the working class people, whereas the strategy in the U.S. will be to target those looking for more of an upscale clientele, which will work with the first states the stores will expand in, which include Michigan, Ohio and New York.

Don't get the idea that this is Tim Hortons first foray into the U.S., as they already have a significant presence, with 563 stores operating in 12 states at this time. This is looking at the expansion of the company in North America, and some of the strategies it's going to employ going forward.

Domestically Hortons is looking at opening another 1,000 restaurants, where they already have over 3,015. They are projecting to have somewhere around 4,000 stores opened in Canada alone by the end of 2013. Western Canada is the growth area they see as important.

The company added they're looking to expand beyond the North American market too, with five specific countries being targeted, although they didn't specify which ones they were.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: business expansion , canadian business , canadian restaurants , tim hortons