Tim Hortons to build two new warehouses

Dive Brief:

Quick-service restaurant chain Tim Hortons will build two new warehouses in Canada and expand an existing one as part of a multi-year plan to "expand and modernize its Canadian distribution network," the company said in a press release.
The restaurant expects the project to cost approximately CA$100 million (US$75.2 million) and create 150 new jobs.
The announcement comes about two months after several Tim Hortons franchisees were hit by delays in receiving supply deliveries, The Canadian Press reported.

Dive Insight:

Building new warehouses allows a company to get closer to its customers and, in many cases, speed up the supply chain. With Tim Hortons constructing new warehouse facilities in Alberta and British Columbia, the restaurant chain expects to "streamline overall restaurant operations" and better serve its franchises and customers across Canada.

"Changes of this scale require significant review and an appropriate consultation process to ensure we get it right for our restaurant owners and our guests," a spokesperson for Tim Hortons told Supply Chain Dive.

The restaurant hit a few bumps in the road in April when it made upgrades to its software and supply chain distribution process, resulting in many franchises unable to get supplies such as coffee, bottled water and garbage bags, according to the Financial Post. Tim Hortons even recommended franchisees to source some of their goods from Walmart until the supply delivery issues were resolved.

The supply problems further exacerbated an already tense relationship between franchisees and Tim Hortons' parent company Restaurant Brands International. Amid the tensions, the restaurant chain pulled back on further expansion in the U.S.

While issues between the two entities may not be fully resolved, Tim Hortons expanding its distribution network in Canada shows its commitment to creating a streamlined logistics network throughout the country.

"We're very excited about the distribution centre upgrade as it reflects our long-term commitment to Canada," the spokesperson said.