Tim Hortons Expanding Its Footprint to Mexico
Last week, Restaurant Brands International (NYSE: QSR) announced its brand, Tim Hortons, would be expanding into Mexico. The company said it will form a master franchise joint venture with an unidentified group of investors.
"We are continuing to build on our commitment of taking the Tim Hortons brand and Canada's favorite coffee around the world," Daniel Schwartz, CEO of Restaurant Brands International, said in a press release. "Mexico has a thriving coffee market so we are very optimistic about the opportunity to grow the brand across the country."
The announcement follows a big international expansion effort by Restaurant Brands International, after Tim Hortons announced in September that it would expand to the UK as well as the Philippines.
As of September 2016, Tim Hortons had more than 4,400 restaurants, the vast majority of which were in the U.S. and Canada. The company also has an expanding footprint in the Middle East, with more than 100 locations in countries such as Saudi Arabia, the United Arab Emirate, and Qatar.
According to The NPD Group, quick-service restaurant traffic dropped for the first time in five years in 2016’s third quarter, after foodservice visits declined by 1 percent compared to the same quarter in 2015. As Tim Hortons increases its U.S. presence it may serve the company well to test out the Mexican market.