International expansion for Tim Hortons

According to CBC News (and other sources), Canadian coffee shop chain Tim Hortons said Friday it planned to open more than 100 restaurants in the Gulf region as it continues to revamp its global expansion strategy.

Tim Hortons, which has more than 3,600 coffee shops in North America, said it signed an agreement with a Dubai-based company to open 120 stores across the Gulf Region. (Canadian Press)

The iconic coffee and donut seller said it reached an agreement with Dubai-based Apparel Group for up to 120 multi-format restaurants in markets in the Gulf Cooperation Council (GCC).

"Our due diligence has identified the GCC as an international development opportunity …," said Don Schroeder, president and chief executive officer at Tim Hortons.

The agreement provides for development in the region including United Arab Emirates, Qatar, Bahrain, Kuwait and Oman. The group will open five restaurants in 2011.

Apparel Group operates more than 50 international brands and runs more than 600 stores in 14 countries including Tommy Hilfiger, Kenneth Cole, Aldo, Aeropostale, Nine West, and Cold Stone Creamery.

As of November 2010 Tim Hortons had some 3,649 restaurants system-wide, including 3,082 in Canada and 567 in the United States. It also has almost 300 self-serve kiosks in stores in Ireland and England as part of a joint-venture agreement.  It also retreated from Providence, R.I., and Hartford, Conn when it closed 36 stores late last year.

But, Tim Hortons has come under fire in recent years from analysts for not having a clearly defined expansion strategy. Brian Yarbrough, an analyst at Edward Jones in St. Louis, said the company should hone its North American strategy before looking at international expansion.