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  • Tim Hortons latest deal with Spain suggests trouble on the homefront

    Canadians' love of Tim Hortons coffee is being tested after the Canadian-made coffee company raised its prices on Wednesday, August 2nd.

    However, it's not the only change happening within the company.

    Tim Hortons parent company, Restaurant Brands International Inc. (RBI), announced on August 2nd that it was taking its coffee and doughnut shop to Spain.

    "We are thrilled to announce plans to launch the iconic Tim Hortons brand in Spain, which is one of the largest café markets in Europe," said Daniel Schwartz, CEO of Restaurant Brands International.

    Tim Hortons is turning to an international market to stay in the game.

    In March of 2017, the Great White North Franchisee Association (GWNFA) was launched in Canada with the sole purpose of advocating for frustrated franchisees.

    On June 26th, 2017, The Great White North Franchisee Association (GWNFA) announced its forming a U.S.-based association to represent Tim Hortons franchisees south of the border.

    Concerns around RBI's management, abuse of power as well as use of monies from the franchisees' ad fund were just a few of the issues pursued in a class action suit filed on June 19th, 2017. The class action suit was filed against RBI, TDL and company executives breaching obligations to Tim Hortons store owners in Canada, according to GWNFA.

    In the past few months, several international expansions have taken place, with Spain being the most recent expansion.

    RBI signed a contract to expand Tim Hortons in Spain on Wednesday.

     "Spain is an attractive growth market that is well suited to the unique offerings available at Tim Hortons® including our high-quality coffee and fresh food at great value," said Lucas Muniz, Regional President of Tim Hortons, International.

    Restaurant Brands International stated in a press release that this latest agreement with Spain is similar to Tim Hortons brand in Mexico, Great Britain and the Philippines.

    RBI hopes to grow its international strategy and expand its brands worldwide.

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