Tim Hortons plans expansion in Canada as population boom, aims 30 sites in Panama by 2034

CANADA – Tim Hortons, Canada’s largest coffee chain, is preparing to expand its outlets in Canada for the first time in two years, aiming to capitalize on the country’s recent population surge.

According to Canadian government figures, Canada’s population grew by 3.1% in 2023, reaching 40.1 million, the highest growth rate in over 60 years, driven by significant immigration.

In September 2023, Statistics Canada reported that Alberta’s population was growing faster than any province had since data recording began in 1871.

Seven other provinces also experienced record population growth in 2023, with Prince Edward Island, Nova Scotia, New Brunswick, and Ontario all seeing increases of 3% or more.

Canada’s population growth is expected to slow to 1.9% this year. Based on these statistics, Restaurant Brands International (RBI) CEO Joshua Kobza stated that sustained population growth in Canada could support more stores than initially planned.

“If we add another 1% of the population, we probably need about that many more stores. So we’ve been looking very carefully at the parts of the country where we’re least penetrated and considering adding more stores there, especially freestandings and drive-thrus,” Kobza added.

Tim Hortons’ sales in its home market remain strong, achieving 3% year-on-year sales growth in Canada in the three months ending September 30, 2024, reaching $1.76 billion.

However, the coffee chain is ending the third quarter of 2024 with 3,861 outlets, down 13 sites compared to 12 months ago and over 140 fewer than the 4,000 stores it operated at the start of 2020.

Additionally, Tim Hortons has expanded its presence in the Americas with its first store in Panama at Soho Mall, aiming to reach 30 sites in Panama by 2034, focusing on Panama City.

Panama is the coffee chain’s fourth market in the Americas after Canada, the US, and Mexico, where it currently operates 3,861, 643, and 132 outlets, respectively.

The Canadian coffee chain announced a franchise agreement with Vortex Investment SA to enter the Central American market in February 2024 and expects to open two more stores in the first quarter of 2025.

The coffee chain’s combined Canada and US sales increased by 2.8% year-on-year in the three months ending September 30, 2024, reaching $1.9 billion, with like-for-like sales growing by 2.3%.

Ontario-based Tim Hortons now operates in 20 markets globally, with a growing presence in the Middle East and East Asia.

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