Toronto Star

Double-doubles now served in Oman

Partnershi­p with fashion giant sees Tim Hortons battling Starbucks in Gulf

- MADHAVI ACHARYA-TOM YEW BUSINESS REPORTER

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.

 ?? PAWEL DWULIT FOR THE TORONTO STAR FILE PHOTO ?? Tim Hortons is drawing attention from across the Middle East, including in the UAE, shown, and now Oman.
PAWEL DWULIT FOR THE TORONTO STAR FILE PHOTO Tim Hortons is drawing attention from across the Middle East, including in the UAE, shown, and now Oman.
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