Dunkin’ has long owned the coffee and breakfast conversation in America. A Canadian chain is watching from across the border and approaching.
Tim Hortons, the Canadian chain with more than 5,700 restaurants worldwide, has spent years trying to build meaningful momentum in the U.S. market and failed. latest data QSR Magazine It shows that something has changed.
In 2025, the brand had the highest level of new restaurant openings in the U.S. in more than a decade, expanded into new states, and reached record levels for guest satisfaction, digital sales, and cold beverage performance.
Josh Kobza, CEO of Restaurant Brands International, called 2025 a year of “strength” and “resilience” for Tim Hortons.
Growth did not come by following trends. Tim Hortons leaned on its core identity: coffee, breakfast and fast, affordable service.
This focus appears to be what is finally resonating with American franchisees and customers after years of slow progress.
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The brand’s franchise development application calls for approximately 50 new U.S. outlets in 2025, and the brand is very close to that goal. QSR Magazine. New markets in preparation for 2026 include Maryland, Washington DC, Philadelphia and San Antonio.
The brand also has expansion plans for Texas, Georgia, Tennessee, Virginia, New Jersey, Delaware and North Carolina, according to QSR Magazine.
A walk-in venue in midtown Manhattan in New York City has also opened as part of the 2025 campaign.
Some key metrics for the coffee chain have improved meaningfully in 2025. Breakfast food sales increased 3.5% in the 4th quarter. QSR Magazine According to QSR Magazine, notes stemming in part from freshly cracked scrambled eggs and Farmer’s Wrap.
QSR Magazine noted that cold beverage sales increased 8.6% in Q4, representing approximately 27% of total beverage sales, the highest Q4 mix in history. This growth was driven by iced espresso drinks, including iced chai latte and protein latte.
Digital sales hit an all-time high in Q4. The loyalty program is now approximately 33% Sales powered by 7 million active members who spend 50% more and visit stores more frequently than they did before joining the program, according to QSR Magazine. Guest satisfaction also reached record levels in 2025 and service speed increased every day.
Canadian coffee chain Tim Hortons makes its first big splash in the US Shutterstock
Dunkin’ and Starbucks remain much larger in the US market. But Tim Hortons competes directly in the same category: coffee, breakfast and affordable drinks. Its cold drink offering, which includes iced lattes and espresso-based beverages, places it in the same afternoon part of the day where both competitors generate significant revenue.
The brand is also launching new espresso machines across its network to improve quality and consistency. Retail Insider. Improvements in service speed give it a stronger drive-thru offering, which is central to competing with Dunkin’ in particular.
RBI’s long-term goal is to reach 1,000 U.S. Tim Hortons restaurants by 2028, according to Restaurant Brands International. Press release. The chain currently has 683 locations in the U.S., which means it needs to add roughly 317 more locations over the next two years to reach that goal.
Number of US restaurants by the end of 2025: 683, QSR Magazine stated
New US openings in 2025: Highest level in more than a decade
Active loyalty members: 7 million spends 50% more than pre-registration
2026 new markets: Maryland, Washington DC, Philadelphia, San Antonio
2028 US restaurant goal: 1,000 locations, RBI shared
Tim Hortons’ total revenue in 2024: According to 4 billion dollars WTOP
The clearest indication that the turnaround at Time Hortons is real? Dealership activity. Operators sign development agreements when they believe unit economics work. What did the chain sign? Q.S.R. Described as a “multiple deal” over the past few years, this deal comes with more markets coming online in 2026.
RBI chairman Patrick Doyle acknowledged that 2025 is “challenging” overall for restaurateurs, given rising costs and cautious consumers. Retail Insider.
Tim Hortons raises coffee prices by about 3 to 5 cents per cup in 2025; This marked the first price adjustment in nearly three years. The fact that the brand is still achieving record openings and satisfaction scores in this environment makes the results more remarkable, not less.
For investors watching the restaurant industry, Tim Hortons’ progress in the U.S. is a reminder that brand improvements aren’t always loudly announced. After years of false starts below the cap, the chain has been building a quiet, consistent momentum that tends to intensify over time.
Related: Starbucks is bringing back two viral drinks not seen in nearly a decade
