Canada’s largest fast food chain, Tim Hortons, has closed 36 of their weakest outlets in the United States. However executives are hoping that business will become even stronger despite this move.
Tim Hortons Chief Executive Don Schroeder told business analysts during a conference call that his company is confident that there will be plenty of opportunities for them in the States, citing the positive business momentum that they enjoyed during the previous year.
Schroeder says that while the 36 closest outlets in New England were growing, their progress was too slow for the company to maintain them.
The third quarter of this year saw the company earn $81.7 million, which compares favorably with last year’s $66.9 earnings. In total, the company grew sales by 9.7 percent over 2009 with numbers in Canada up by 4.3 percent.
The chain, which owns 3,082 outlets in Canada and 621 sites in the States, is looking forward to improving their marketing strategies in the United States.
Expansion there began in the 1990s, where it faced tough competition from its primary rival, the well entrenched ‘Dunkin Donuts’.
Schroeder says they will invest up to 70 percent of U.S. capital into its existing markets as well as towards advertising.
The 36 outlets that were closed included all shops in Providence, Rhode Island and Hartford, Connecticut. They’ll be closing another 18 kiosks in the fourth quarter which will cost them about $30 million in lease and location closing.
Photo by Ljsinoz