The Columbus Dispatch

Tim Hortons to expand in China over next decade

- By Lisa Wolfson and Leslie Patton

president, Alex Macedo, said in a written statement. “China’s population and vibrant economy represent an excellent growth opportunit­y for Tim Hortons in the coming years.”

China could provide a boost for a brand that has struggled in recent quarters amid disputes between parent Restaurant Brands Internatio­nal Inc. and Canadian franchisee­s. Restaurant Brands wants to boost Tim Hortons’ sales by remodeling locations and revamping the menu with more espresso and lunch offerings. Last April, Chief Executive Officer Daniel Schwartz acknowledg­ed results at Tim Horton’s “were a little softer than we would have liked.”

Still, a move into the world’s most populous nation while a trade conflict escalates between the U.S. and China could be a risky move. Some U.S. brands already are having trouble gaining traction there. Pizza Hut has struggled to appeal to Chinese consumers, and Starbucks has cited a sales slowdown in the country.

“There is the risk that there will be more anti-Western or anti-U.S. sentiment in consumers that develops over time,” said Bloomberg Intelligen­ce analyst Jennifer Bartashus. “If that happens, same-store sales could come under severe pressure.”

Canadian icon Tim Hortons has pushed into new internatio­nal markets under Restaurant Brands, which also owns Burger King and the Popeyes Louisiana Kitchen chain. Tim Hortons has locations in the U.K., Spain and Mexico now, and Schwartz has said its global expansion “is still in its early days.”

In 2012, Cartesian teamed with Restaurant Brands to bring Burger King to China, where there are more than 900 outlets of the fast-food chain.

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