Tim Hortons will open its Houston first store this summer. This is the Canadian coffee chain’s move to further South for its next stage of U.S. expansion.

The Restaurant Brands InternationalChain has over 600 U.S. branches, which makes it the third largest coffee chain in America, just behind Starbucks. StarbucksAnd Dunkin’. It’s not the third most popular chain in America, however, and has failed to gain traction with American consumers despite previous attempts dating back decades, when it was bought by Wendy’s. Tims wants to make up the difference and surpass Dunkin’s. This chain recorded its greatest growth in U.S. restaurant sales since 2016 in 2021.

Jose Cil is the chief executive officer of the parent company RBI. He stated that the packaged coffee chain’s business in the U.S. has been growing through direct-to–consumer sales on the internet and in supermarkets.

He said, “It’s an indicator of awareness as well as the demand for our product, so there are a lot of markets in America, south of our southern restaurants: places such as Texas and Florida.”

Tims current U.S. location are in areas that border Canada. These include New York and Michigan. According to Cil., this will lead to the U.S. expanding in the future into markets such as Texas and Florida.

There are more than 3.5million Canadians living in Florida, and that includes snowbirds. This makes brand awareness very strong. There is strong demand. “We just have to be there to fulfill it,” Cil stated.

It has changed its business model in recent years. The company rebuilt many locations in Ohio with smaller floor areas. Cil stated that the new model is easier to construct and offers better economics per unit than its predecessor. The U.S. restaurant’s new focus is on hot breakfast sandwiches and beverages rather than its Canadian counterparts, which tend to push into lunch and dinner.

“We are not full-blown entrepreneurs” [quick-service restaurant]Cil explained that “we’re focused only on what we do well.”

Tims is expanding in other international markets as well. Just three years ago, the chain opened its 400th Chinese location.

Tims’ home market in Canada has seen its share of challenges. It was already in turnaround mode prior to the pandemic. The company upgraded its food and coffee offerings, and launched a loyalty program in response to stagnating sales growth. Covid outbreaks put additional pressure on its comeback.

The chain did report a Canadian increase in same-store sales of 11.3% during the fourth quarter. This was due to sales by loyalty program members as well popular promotions like the collaboration with Justin Bieber.

After the release of its fourth quarter results, shares in Restaurant Brands rose more than 3 percent on Tuesday afternoon. The company’s revenue and earnings. both topped Wall Street’s estimatesThis quarter, restaurant businesses are experiencing higher operating costs and a shortage of employees.