The Ontario-based coffee chain increased its global footprint by more than 300 outlets last year, but closed more than 50 net stores across its domestic market
Tim Hortons has reported an ‘impressive’ 2022, with full-year revenues driven by an uplift in comparable sales and new stores in international markets.
Restaurant Brands International, which operates Tim Hortons alongside the Burger King, Popeyes and Firehouse Subs fast-food restaurant chains, said total revenues for the coffee chain increased 14% to reach $7.16bn.
Tim Hortons’ Canadian operations generated sales growth of 13% to reach $6.03bn, while international revenues rose 18% to $1.13bn.
The company’s strong domestic sales were achieved despite the net closure of 53 net stores across Canada, where Tim Hortons now operates 3,896 outlets.
While RBI did not specifically address the store closures, the restaurant group did suggest rising inflation could adversely impact its business throughout 2023.
Increasing tension between Tim Hortons and its Canadian franchisees has been reported over rising food and supply costs. The Alliance of Canadian Franchisees, which counts a third of Tim Horton’s nearly 3,900 store owners as members, said the brand should be doing more to offset inflationary pressures.
RBI reported 27% international outlet growth for Tim Hortons to reach 1,704 stores, including impressive expansion in China and market entries in India and Kuwait.
In February 2023, Tim Hortons opened its first store in Pakistan – with the Lahore outlet reportedly generating record opening day sales for the brand.
“We rounded out an exciting 2022 with another strong quarter, including nearly 8% consolidated comparable sales and 4% net restaurant growth, reflecting the strength of four iconic, global brands. Tim Hortons Canada capped off an impressive year with comparable sales of 11% in the fourth quarter, benefiting from strong sales momentum as the team executes against its strategic priorities,” said José Cil, CEO, RBI.
RBI reported full-year sales growth of 14% for Burger King, 9% for Popeyes and 4% for Firehouse Subs.
In February 2022, Tims China announced it was set to gain the exclusive rights to develop and sub-franchise Popeyes across the country.
The company, which operates Tim Hortons across China, said the proposed agreement will enhance distribution, supply chain, sales and marketing capabilities for both brands.
