Since launching its first UK location in 2017, Canadian coffee and donut chain Tim Hortons has become an increasingly familiar name across British towns and cities over recent years.
The brand first opened its doors and started serving its signature coffees and baked goods to British customers from its first unit this side of the pond in Glasgow, and now has 75 locations in the UK, all of which are currently company-owned. With its eyes now firmly on rapid UK growth, Tim Hortons this week announced the launch of a franchise model following what it calls a five year “test and learn phase”.
The Canada-born quick-service restaurant brand has of course been a well known name in the world of franchising over a number of decades. The very first Tim Hortons store was founded by Horton himself, a National Hockey League player, together with business partner Jim Charade in Ontario in 1964. Subsequently acquired by investor Ron Joyce, the chain expanded rapidly through franchising during the 1980s and is now one of the brands owned by Restaurant Brands International, who also have Burger King, Popeyes and Firehouse Subs in their portfolio. There are now over 5600 Tim Hortons locations worldwide spanning 16 countries, approximately 40% of which are believed to be operating under franchise.
The expansion plans are well timed as the UK coffee market appears to have bounced back well following the pandemic, with World Coffee Portal reporting that the £4.9bn ($6bn) branded coffee shop market achieved 11.9% sales growth in 2022. Tim Hortons has centered its UK growth strategy to date on out-of-town and drive-thru locations, aligned with current consumer demands for convenience and self-serve options. Such sites are of course more economically favourable than high street locations, with cheaper land prices and lower and more streamlined operational costs. Late last year, marking the opening of their 50th UK drive-thru location in Watford, England, Kevin Hydes, Tim Hortons UK Chief Commercial Officer said “We have planned our site acquisition stratgey carefully to ensure that we are securing as many drive-thru sites as we can in order to meet the growing customer demand for the additional convenience that they provide. We only see this demand growing, with people being time poor and seeking high quality, great value food and beverages at all times of day served at speed.”
This week, in a statement to announce the launch of the UK franchise model, Hydes said “We have spent the last five years in a test and learn phase, and the last two years building the infrastructure required to support franchisees. We are looking for expert operators from across the UK with a proven record of delivering brand standards, delighting customers and driving commercial growth. We continue to see high consumer demand for the Tim Hortons brand, with every opening exceeding commercial expectations, so we are confident that our strong market position and our unique customer proposition of a beverage led, quick service restaurant will be of huge interest and will provide commercial value to our franchise partners.”
With plans to run the new UK franchised units alongside company-owned locations, Tim Hortons clearly has ambitions to become one of the best known quick-service brands on British soil. And with decades of global franchising experience behind it, the iconic Canadian brand is seemingly well placed to achieve its goal.
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