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Tim Hortons Coming to 25 Area Gas Stations in 2015
YOUNGSTOWN, Ohio -- Tim Hortons Inc. restaurants will open units in 25 area gas stations next year under an agreement being worked out with a franchisee, confirmed a spokeswoman for the chain.
Tim Hortons is a quick-service chain that offers a menu that includes its signature coffee, hot and cold specialty drinks , specialty teas and fruit smoothies and sandwiches, wraps and other food products. Founded in Canada in 1964, the chain’s first U.S. restaurant opened in 1984. It has 4,485 restaurants worldwide, including 859 in the United States as of December 2013.
On Tuesday, the company issued a news release outlining plans to open 25 “non-standard” units in the Youngstown metro area as part of its growth strategy.
“We have a strong presence in Erie, Pa., and a strong presence in Columbus, Ohio,” making a move toward the Youngstown area a “natural progression,” said Brynn Burton, manager, U.S. public relations. The chain already has outlets in Calcutta and in Hermitage, Pa.
“The Youngstown expansion is going to be what we call nonstandard restaurants, which are going to be [in] fuel stations,” the spokeswoman said.
Burton declined to identify the franchisee that will be developing the local stores but expected an announcement within months. “From that, you will start to see sites open in 2015,” she said.
The company’s plans do not call for development of any freestanding restaurants in the Mahoning Valley, she said. “It’s pretty much just the nonstandard [units] as of now,” she said.
The Mahoning Valley expansion represents a portion of the 300 U.S. restaurants the company plans to open by the end of 2018 outlined in its strategic roadmap. The U.S. market, the “largest quick-service restaurant market in the world,” represents a “must-win battle” for the company, according to the company’s Feb. 25 news release, in which it outlined its strategy for “Winning in the New Era.” In addition to expanding the number of U.S. units by developing stores as well as pursuing traditional franchise development, Hortons' plans include increasing unit volumes in its existing stores.
“Consumers are highly interconnected and have increasingly evolving needs. Our strategic roadmap is ambitious but achievable, and is designed to capitalize on our strengths while allowing us to rapidly adapt to deliver on those changing consumer needs,” Marc Caira, president and CEO, said in a prepared statement. “We are energizing the Tim Hortons brand in all of our geographic markets and we are focusing on driving long-term, sustainable profitable growth which we believe will return us to above-market total return to shareholders.”
At year-end, the company operated 3,588 stores in Canada, 859 in the United States and 38 in the Middle East. Its fourth-quarter profits rose to $100.6 million from $100.3 million inthe fourth quarter of 2012. Revenue rose 10.75 to $898.5 million.
The company’s stock, which trades on the New York Stock Exchange, closed at $53.88 Thursday, down slightly from the day before.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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