Tim Hortons investing $400 million to build, renovate 480 restaurants

Expansion includes 80 new locations across Canada as chain faces arrival of Dunkin’ locations

Tim Hortons investing $400 million to build, renovate 480 restaurants

Tim Hortons restaurant owners are opening 80 new locations and renovating 400 more across Canada in 2026, part of a $400-million national investment plan that the company says reflects continued confidence in the brand's long-term growth.

The owners are contributing $270 million of the total, with Tim Hortons corporate investing an additional $130 million. The 480 projects span every province and territory, with Ontario leading the way at 214 locations — 26 new builds and 188 renovations.

"Tim Hortons was built in Canada by Canadians, and we are proud to continue investing in Canada to give our guests beautiful, modern restaurants to enjoy," said Axel Schwan, president of Tim Hortons, in a press release. "These are Canadian families investing their own money in their own communities — and that's something we're proud of."

The announcement comes just days after Montreal-based restaurant franchisor Foodtastic signed a master franchising agreement with Inspire Brands to open hundreds of Dunkin' locations across Canada.

Where new restaurants are opening

Alberta is second in new builds with 17 new locations and 49 renovations for a total of 66 projects, followed by Quebec with 14 new builds and 51 renovations, and British Columbia with eight new builds and 43 renovations, according to Tim Hortons. Ontario, Alberta, Quebec and British Columbia together account for the majority of the national build and renovation activity.

In the Northwest Territories, one new restaurant is opening this year in Inuvik, representing a total local investment of roughly $400,000, according to Tim Hortons. Nunavut will see one renovation.

Investments at Tim Hortons locations

The renovations and new builds are designed to improve the experience for both guests and team members, according to Tim Hortons. Updates include:

  • brighter lighting and redesigned layouts
  • improved digital ordering and mobile pickup infrastructure
  • upgraded kitchen equipment
  • a new baked goods showcase.

The company also noted that renovation and construction materials are sourced through Canadian-owned businesses, with most items manufactured in Canada, according to the statement. Custom restaurant furniture is handcrafted in Montreal from 100 per cent Canadian-sourced maple, signage is designed and installed by Canadian suppliers, and restaurant artwork is created by Canadian artists, according to Tim Hortons.

The chain has been busy lately lobbying the federal government to loosen restrictions on the use of temporary foreign workers (TFWs) in its restaurants.

Strong financial backdrop for RBI

The expansion comes as Tim Hortons' parent company, Restaurant Brands International, reported its strongest quarterly results in recent memory. RBI posted consolidated system-wide sales growth of 6.2 per cent year-over-year to $11.51 billion US in the first quarter of 2026, according to the company's May 6 earnings release.

Tim Hortons itself recorded its 20th consecutive quarter of positive comparable sales, with Canadian comparable sales up 1.5 per cent in the first quarter, according to RBI. System-wide sales for the Tim Hortons segment grew 2.4 per cent on a constant currency basis to $1.74 billion US, with total revenues for the segment reaching $997 million US, up from $903 million US in the same period a year earlier, according to RBI.

"We remain focused on defending and extending our leadership in coffee, breakfast and baked goods," CEO Josh Kobza said on the May earnings call, according to Franchise News.

Tim Hortons ended the quarter with 4,569 total locations, the majority of them in Canada, according to RBI's earnings release.

Dunkin’ set to return to Canada

The investment push comes as a familiar competitor prepares to re-enter the Canadian market. Foodtastic, a Montreal-based multi-brand restaurant operator, has signed a master franchise agreement with Dunkin' owner Inspire Brands to bring the coffee and donut chain back to Canada for the first time since 2018.

Foodtastic CEO Peter Mammas said early interest has been strong, with 1,400 franchisee applications received in the first 10 days after the announcement, according to Franchise News. While initial plans called for 15 store openings in the first year, Mammas told Franchise News he now believes 30 is realistic.

Toronto-based retail analyst Bruce Winder noted that Dunkin's focus on a younger demographic between 13 and 35 — one he said Tim Hortons has struggled to connect with — gives it a potential opening, according to Franchise News. However, he added that no one is overtaking Tim Hortons in Canada, pointing to the chain's deep roots and consistent financial performance as formidable competitive advantages.

 

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