News

McDonald's plans Canadian expansion, retail coffee launch

October 26, 2012

McDonald's plans to add 30 new restaurants in Canada by the end of this year, adding to its current footprint of about 1,400 units in the country.

According to the Chicago Tribune, the chain has accelerated its expansion in Canada and will build more restaurants this year than it has in the past seven-plus years. Next year, McDonald's plans to continue ramping up its growth in the market.

The expansion will add more intensity to the Canadian coffee and lunch competition, as both Starbucks and Tim Hortons have a large presence in the country. In July, Tim Hortons' interim CEO Paul House said the chain is pushing for a bigger share of Canada's lunch crowd and would like to surpass McDonald's for the daypart's No. 1 spot within five years.

McDonald's is also using Canada as its platform to dive into the retail coffee space. According to the Chronicle Herald, the chain is building on the success of last year's McCafe launch with a new brew-at-home version of its medium-roast coffee.

John Betts, CEO of McDonald's Restaurants of Canada Ltd., said the launch is in response of consumer demand, and the rollout will begin Nov. 5.

"Two-thirds of Canadians drink more coffee at home than on the road and we know lots of our customers are looking to purchase the brand to bring home," Betts told the publication.

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