Tim Hortons is looking to the Persian Gulf for growth.
The coffee shop chain signed a master license agreement Friday with Dubai-based Apparel Group to open up to 120 restaurants in the Persian Gulf region over five years.
The deal covers the Gulf Co-operation Council which includes the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman.
Tim Hortons president and chief executive Don Schroeder said Canada and the United States remain the company’s main drivers of growth but “there is an opportunity over the long-term to explore international opportunities and seed the Tim Hortons brand in various markets outside of North America.”
The locations will be developed and operated by Apparel with five locations open this year.
“Our partners at Apparel have considerable knowledge of the local markets and consumer expectations and have introduced world-leading brands to the GCC,” Schroeder said in a statement.
Apparel Group operates over 50 brands including Tommy Hilfiger, Kenneth Cole and Cold Stone Creamery with more than 600 stores in 14 countries.
Tim Hortons has more than 3,600 locations in Canada and the United States.
Late last year, Tim Hortons said it would shutter some 54 locations in New England, a money-losing market for the company.
Since opening its first U.S. store in Buffalo, N.Y., in 1985, Tim Hortons has expanded to over 600 stores in a dozen states–including Ohio, Kentucky and West Virginia–and plans to open another 300 locations over the next three years.
Unlike in Canada, where the brand has immediate recognition, Tim Hortons spells out its specialty on its store signs, which read: “Tim Hortons: cafe and bake shop.”
