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“The coffee culture in Great Britain is starting to develop,” with volume at restaurants up four per cent in the last year compared with overall restaurant volume of three per cent.

Additionally, Great Britain has a far smaller percentage of fast food restaurants and cafes than Canada does, he added, with the foodservice market still largely dominated by full-service dine-in restaurants and a thriving “home meal replacement” take-out market at grocery stores.

In Canada, about 68 per cent of restaurant traffic is at quick-service establishments, about double that of quick-service restaurants in Great Britain, according to NPD.

Alan Middleton, marketing professor at York University’s Schulich School of Business, said Tim Hortons’ success in the U.K. market depends on the experience of the local joint venture partner and their ability to secure good real estate.

“Unlike the U.S., the U.K. is not primarily a price-driven marketplace. With U.S. companies, the first instinct is to cut price when competition comes. The cost in the U.K. is the location, either as rental or ownership costs. So although the consumer market is less price sensitive, real estate is costly in markets such as London — less so in smaller cities.”

Middleton also believes Tims’ fare will be perceived as somewhat healthier than the offerings of other fast food players. “That is one trend working in their favour, and that’s something Burger King can’t do.”

At the beginning of 2016, Restaurant Brands International had 4,413 Tim Hortons restaurants, including 3,650 in Canada, 650 in the United States and 113 in the Middle East. At the end of the second quarter, the company operated 4,464 global Tim Hortons restaurants.

Financial Post

hshaw@nationalpost.com

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