Double-doubles now served in Oman
Partnership with fashion giant sees Tim Hortons battling Starbucks in Gulf
Now you can grab a double-double in Oman, but you may have to wait in line. Tim Hortons said Monday it has opened its first “café and bake shop” in what’s officially known as the Sultanate of Oman.
“People in the Middle East love our double-double, just like Canadians. There’s a real taste for it,” David Clanachan, chief operating officer for Tim Hortons, said in an interview. “We’re very proud of our brand in Canada obviously. We’ve been cautious about how we’ve introduced it in the U.S., and now we’re starting to make headway in a very competitive market there.”
The iconic Canadian chain now has 20 restaurants in the Gulf area under a development deal with Apparel Group, a global fashion and lifestyle brand, with 19 in the United Arab Emirates.
Tim’s faces heightened competition in the region, where it faces North American rivals such as Starbucks and Sec- ond Cup, as well as coffee purveyors from Europe and Asia.
“Our experience so far in the GCC (Gulf Co-operation Council), is that it’s very much like Canada, very multicultural. Our food, and the fact that it’s baked fresh in stores, has become a magnet for people,” Clanachan said.
“We’ve become a gathering place. You see families, friends, business associates, grandmothers with grandchildren. You get everything from Ferraris to pickup trucks. It’s been a real eye-opener for us.”
The chain’s signature Iced Cappuccino is among the top-selling items, he added, along with coffee, latte and espresso.
Aside from cultural observances involving Ramadan, keeping Halal and a ban on pork products, the stores and menu are nearly identical to those in Canada, Clanachan said.
Tim Hortons’ four-year strategic plan, unveiled in 2010, includes exploring international opportunities and developing its brand outside North America.
Dubai-based Apparel Group plans to open up to 120 locations over five years in the Gulf within the UAE, Oman, Qatar, Bahrain and Kuwait.
The company operates more than 700 stores in 14 countries featuring 50 brands, including Tommy Hilfiger, Kenneth Cole, Nine West and Canadian shoe chain Aldo.
“From Tim Hortons’ perspective, they have nothing to lose and everything to gain,” as Apparel Group opens more locations in the Middle East, said Ken Wong, professor at the School of Business at Queen’s University. Apparel Group understands the local market, culture, real estate, as well as distribution and business development in the region, Clanachan said. “They’re fantastic partners and very adept at running businesses in the region. We’re fortunate to have found them for our real first international foray.” Tim Hortons has had mixed results with its U.S. expansion. It closed 11 stores in New England in 2008, but has opened locations in Michigan, upper New York State, and Pennsylvania this year.