Tim Hortons, Cold Stone to Form 100 Co-Branded Stores

By Courtney Dentch

Feb. 6 (Bloomberg) -- Tim Hortons Inc., Canada’s largest restaurant company, and ice-cream chain Cold Stone Creamery will create 100 co-branded stores in the U.S. to expand sales throughout the day.

A three-month test of two stores in Rhode Island led to a double-digit percentage gain in sales, said Kevin Blackwell, chief executive officer of Cold Stone parent Kahala Corp. The companies are also developing menu items that incorporate products from both restaurants.

Tim Hortons is looking to broaden its American presence after a third-quarter loss in the U.S. prompted them to shut 15 locations in New England. The coffee-shop chain competes with McDonald’s Corp., Starbucks Corp. and Dunkin’ Donuts Inc. at its 500 U.S. locations. Cold Stone, which allows customers to choose from a variety of toppings to mix with their ice cream, wants to expand customer traffic during mornings and midday.

More >>