Tim Hortons and Cold Stone to blend up to 100 stores

Tim Hortons, Canada’s largest restaurant company and the ice cream chain Cold Stone Creamery are planning to create 100 co-branded stores in the U.S. They are looking at expanding their sales throughout the day.

After a third-quarter loss in the U.S. Tim Hortons shut down 15 stores in New England. Cold Stone wants to expand their customer traffic in the morning and midday. Cold Stone has a variety of ice creams. What makes them unique, they allow customers to choose from a variety of toppings they will mix in with your ice cream selection. Two stores in Rhode Island were tested for three months. According to Kevin Blackwell, chief executive officer of Cold Stone parent Kahala Corp, the test stores led to a double-digit percentage gain in sales. The two companies are testing menu items that will incorporate products from both of the restaurants. One of the combinations is a cup of Tim Hortons coffee with a scoop of Cold Stone's French vanilla ice cream and a muffin a la mode. Blackwell said in a telephone interview, “This truly hits that morning and lunch day-part that will help drive sales. The results have been fantastic.” The companies said the existing stores in Michigan, New York, Ohio, Rhode Island, Maine and Connecticut will be picked and reconfigured to offer both brands within the next 90 days. There will be 50 Tim Hortons that will go into the Cold Stone stores and 50 Cold Stones will go into Tim Hortons. According to Blackwell the cost are expected to be $100,000 per location.