Advertisement

Who is winning the great Canadian coffee war?

TORONTO – Tim Hortons announced an expansion of 700 new locations across Canada on Tuesday, which will add to their current 3,295 stores already in business.

“Our growth is a direct reflection of the continued loyalty of our customers,” says the company’s Director of Public Affairs David Morelli.

But with McDonald’s McCafe brand launch, and Starbucks locations that seem to be opening on every corner, who’s winning in the ever-escalating Canadian coffee wars?

Global News gathered 2011 data for total sales, number of coffees sold, and number of restaurant locations from each of these companies.

NPD Group, a research organization, provided a breakdown of Canadian restaurant traffic, which refers to the number of people going through the doors of these restaurants.

Tim Hortons

McDonald’s

Starbucks

2011 total sales
in Canada

$5.56 billion

$3.55 billion

Data not made
public

Cups of coffee
sold in 2011 in Canada

2.1 billion

Over 200 million

Data not made
public

Number of
locations in Canada

3,295-soon to be
3,995

More than 1,400
with over 950 carrying McCafe espresso-based beverages

1,138 as of
December 2011

Per cent of all
restaurant traffic

26 per cent

10 per cent

1.3 per cent

Story continues below advertisement

“Canadians visit restaurants 6.5 billion times a year,” says NPD executive director Robert Carter. “Tim Hortons has 26 per cent of all restaurant traffic on a daily basis, which is pretty incredible.”

Financial news and insights delivered to your email every Saturday.

NPD Group’s research also suggests that eight out of 10 cups of coffee served at quick service restaurants in Canada come from Tim Hortons. This may not come as a surprise, since the chain has over double the number of locations as the other two restaurants.

Carter says quick service restaurants such as these make up 44 per cent of the $47-billion restaurant marketplace in Canada.

“Canadians love coffee and love using restaurants so there is lots of room for expansion in the Canadian market,” says Carter. “Coffee consumption is expected to increase, particularly as the population ages and [the boomer generation] will start using restaurants a little more often.”


SOUND OFF: Which coffee do you prefer-Tim Hortons, McDonald’s, Starbucks, or another brand? Share your thoughts with Global News on Facebook.

Sponsored content

AdChoices