What Is The Biggest Fast Food Chain In Canada?

The fast food industry in Canada is big business. As of 2023 it was reported to be worth $36.4 billion. But which fast food chain reigns supreme in the Great White North? Unsurprisingly, it's Tim Hortons, the chain famously founded by a professional hockey player.

Tim Hortons boasts over 4,000 locations across Canada. Compare that to the chain with the second-most locations, Subway, which has just over 3,000. Sales-wise, Tim Hortons reported $9.5 billion in gross sales in Canada in 2023, while McDonald's ranked second in gross sales with $7.1 billion (per Statista).

You might think that's a lot of donuts, but part of Tim Hortons unwavering success has to do with broadening its offering over the years. Undeniably, the chain enjoys a fiercely loyal customer base, many of whom are reliant on the local "Timmy's" for their daily "Double Double" (that's a coffee with two creams and two sugars). Tim Hortons is woven into the fabric of everyday life for most Canadians. But how did a donut and coffee shop come to compete with fast food giants like McDonald's, Subway, and Starbucks?

The origin story of Tim Hortons is a purely Canadian tale. The first location was opened as a donut shop in Hamilton, Ontario in 1964 by Tim Horton and a business partner. Horton was a National Hockey League legend who played 24 seasons and won four Stanley Cups with the Toronto Maple Leafs. Horton was involved in the business until he died tragically in a single car crash in 1974 at age 44.

In the early years, Tim Hortons sold only coffee and donuts. In the 1990s, bagels, croissants, and sandwiches were introduced, along with iced cappuccinos and flavored coffees. Over the next decade, the menu expanded even more, offering hot sandwiches, soups, and wraps. If you walk into a Tim Hortons in Canada today, you'll be met with glowing digital signs outlining loaded bowls with chicken, grilled wraps, flatbread pizzas, crispy potato wedges, and even a steak sandwich. The ever-expanding menu has encouraged customers to spend more at the chain and to visit later in the day (not just for coffee and donuts).

In the third quarter of 2024, Tim Hortons in Canada saw 2.3% increase in sales while most other chains reported declines. According to Global News, the chain "spent much of the period pushing its flatbread pizzas [...] to entice people to spend at the chain later in the day." Tim Hortons told Global that "70 per cent of its flatbread pizza sales come after 2 p.m. or on weekends and those that purchase the items spend on average 2.5 times more than other customers." Clearly, Tim Hortons product strategy is working.