In This Section:
Tim Hortons Opening More Co-Brand Sites, Refiling Corporate
Wendy's/Arby's To Launch Big Middle East Expansion
Dunkin' Donuts Moves Into Lodging Segment
Quiznos Promotes MacDonald To Top Post
FF&L To Acquire Church's Chicken
This issue's Economic Report Sponsor: FER E&S Market Forecast Meetings
Regulatory ReportSponsor: Manitowoc Ice Inc.
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Tim Hortons Opening More Co-Brand Sites, Refiling Corporate
Tim Hortons is on pace with its co-branding test initiative with Cold Stone Creamery. It will open co-branded stores in August at three Cold Stone locations in Manhattan, N.Y., including Cold Stone's flagship Times Square location.
The two companies announced a co-branding test initiative in March for up to 50 U.S. sites for each chain. In June, the companies announced a similar initiative in Canada, opening six co-branded test locations there. Currently, more than 40 restaurants have been fully rebranded to the combined Cold Stone Creamery and Tim Hortons concept.
Back at Tim Hortons headquarters in Oakville, Ont., meanwhile, the Canadian-based but U.S.-incorporated company is making plans to re-establish itself as a Canadian corporation. It has filed papers with the U.S. Securities and Exchange Commission for a proposed reorganization as a Canadian public company, which would allow it to reap the benefits of its home country's lower federal tax structure.
The coffee and doughnut chain emphasized that the potential reorganization does not in any way affect its underlying operations nor its commitment to growing its business in the United States.
The chain, founded in 1964, merged with Wendy's in ‘95; the restaurants were built side-by-side at many locations. In 2006, Tim Hortons was spun off into its own American entity, filed as a Delaware corporation. Tim Hortons has 2,930 stores in Canada and 527 in the U.S.
Stockholders will meet in September to vote on the merger agreement outlined in the registration statement.
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Wendy's/Arby's To Launch Big Middle East Expansion
Nine countries in the Middle East and North Africa will be home to 135 dual-branded Wendy's and Arby's over the next decade.
The agreement signed with Saudi Arabia-based Al Jammaz Group marks the first deal with an international franchisee to build dual-branded units since the September 2008 formation of Wendy's/Arby's. Specialized Catering Est., a subsidiary of Al Jammaz Group with regional offices in Dubai, U.A.E., is scheduled to open the first of the planned units in Saudi Arabia by early next year.
The deal is part of a renewed drive to expand the concepts into international markets. Earlier this year, Wendy's/Arby's Group brought in Darrell van Ligten as sr. v.p., strategic development, to lead dual-branding efforts and work with Jim Hartenstein, sr. v.p., international division.
All Wendy's and Arby's restaurants located outside North America are franchised.
Wendy's/Arby's Group has more than 10,000 restaurants in the United States and 24 countries and territories worldwide. Al Jammaz operates more than 200 international franchise units in the Middle East and North Africa.
Dunkin' Donuts Moves Into Lodging Segment
Dunkin' Brands, which just recently celebrated the opening of its 15,000th store, is edging into broader worldwide expansion with its first hotel restaurant location. The new Dunkin' Donuts store at an indoor water park in Concord, N.C., is one of a variety of store models, including full retail shops, kiosks and self-serve hot coffee stations for gift shops, that the chain is unveiling.
The new nontraditional development strategy is headed by Chris Burr, director of alternate points of distribution. These sites, already equipped with walk-ins, freezers and sinks in place, allow DD to install with a slimmed down equipment package including scaled-down baking and finishing equipment, and front-of-the-house brewers, grinders and toasters.
Development efforts are focusing initially on larger airport hotels and resorts throughout the East, Midwest and Southwest. The brand launched its first-ever theme-park restaurant at Hershey Park, Hershey, Penn.; new coffee kiosks at sporting venues such as Fenway Park and the TD Banknorth Garden in Boston; and new stores at airports including Boston, Dallas-Fort Worth and New York City. Earlier in June, Dunkin' opened seven locations on the Florida turnpike, replacing a competitor in six of those stores.
While expanding in cities where it already has a presence, the company also is entering new domestic markets—Minneapolis, Phoenix and St. Louis—as well as international ones. In January, Dunkin' Donuts opened a unit in Shanghai—its first store in mainland China.
Founded in 1950, Dunkin' Donuts has more than 8,800 restaurants in 31 countries, with global sales of $5.5 billion. Based in Canton, Mass., Dunkin' Donuts is a subsidiary of Dunkin' Brands.
Quiznos Promotes MacDonald To Top Post
Quiznos has named Greg MacDonald company president. MacDonald began his career with Quiznos in 1998, holding senior positions in both marketing and development before being named president of Quiznos Canada in 2005. During that time, the number of Quiznos units in Canada grew by more than 20%, and sales there increased by a similar percentage. Since late last year, MacDonald also has been heavily involved with the re-branding of the U.S. business. Quiznos has more than 5,000 franchised stores, including 500 stores in 21 countries.
FF&L To Acquire Church's Chicken
If all goes according to plan, Church's Chicken will officially be under new ownership by the end of the month. In June, San Francisco-based Friedman Fleischer & Lowe signed a deal to acquire the 1,650-unit chain from Arcapita Bank B.S.C.
An afilliate of Bahrain-based Arcapita had acquired Church's franchisor, Cajun Operating Co., from Popeyes' parent AFC Enterprises in December 2004. Since that time, Church's has recorded earnings growth of almost 60%, as well as increased margins, expanded the store base, and added new markets in the United States, Latin America, the Arabian Gulf, the U.K., Russia and India.
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