25 years after opening its first US store, emblematically-Canadian Tim Hortons is preparing to open three stores in New York City.

Co-branding with US ice cream parlour chain Cold Stone Creamery, the three upcoming stores are the first in a plan between the two companies to open more than one hundred stores. If the first three New York locations prove popular, the repatriated Canadian coffee and donuts retailer will likely open additional stores in the commerce capital of the world.  However, the Canadian product may not be an easy sell; New York is already replete with coffee competitors like Starbucks, McDonald’s and Dunkin’ Donuts. Observers note that if the new locations are to be profitable, management will have to focus on increasing brand recognition: “If there isn't awareness, there's never going to be a trial, and if there's no trial, there's no way you're going to get them to become customers,” says Dennis Lombardi, executive vice-president of food-service strategies at a restaurant and retail development consultancy. Instead of focusing on television advertising, the company aims to attract customers with local marketing efforts, such as coupons for free coffee. Despite the crowded marketplace, executives at Tim Hortons are optimistic about adding to the already-existing number of 527 stores in the US.

Portal for North America has developed a Teaching Module covering the evolution of Tim Hortons, from its acquisition by U.S. fast food chain Wendy's to its rebirth under Canadian ownership and its expansionary challenges.

Related:

• Background: Tim Hortons
• Experts: Business
• Experts: North American Integration
• Watch: Is America ready for Tim Hortons

(Image credit: Flickr user Richard Hsu)