Tim Hortons preparing for global growth

Tim Hortons executives are laying the groundwork for a ramped-up global expansion of the coffee chain with the help of a number of new franchise partners.

Over the coming quarters, Restaurant Brands International — owner of Tim Hortons and Burger King — plans to identify companies that will help build the Canadian coffee brand into a bigger international presence.

CEO Daniel Schwartz said an announcement this month of Tim Hortons’ partnership with U.S. developer Seven Invest was just a preview of what’s to come. Together, the two companies plan to open more than 150 Tim Hortons coffee shops in the Cincinnati area over the next decade.

“We think it will be the first of many such agreements that will allow us to really start stepping up the pace of growth,” Schwartz said in an interview Tuesday after Restaurant Brands reported its third-quarter financial results. “It gives you an indication of the scale we want to get to in the U.S. and also the direction we’re going, moving into markets where we already have a footprint, and doing so in an aggressive manner.”

Tim Hortons’ new owners, who acquired the chain and merged its operations with Burger King last year, promised more details on its international expansion once they got a better grasp on the potential.

But the U.S. market has historically delivered mixed results for Tim Hortons. In 2010, the company pulled out of the northeastern U.S., where average sales volumes were about half of those in other U.S. markets, the company said at the time.

Schwartz said he’s convinced his team can make their push into the U.S. more successful.

“If we have the right partners with the right aggressive development schedule, this brand will flourish in the United States.”

On Tuesday, Restaurant Brands reported its profit grew to US$49.6 million or 24 cents per share in the third quarter, helped by new menu items.