McDonald's Canada spends $1 bn to spruce up image

McDonald's Corp will spend $1 billion to renovate its stores in Canada, the restaurant chain said on Wednesday, as competition with Tim Hortons Inc heats up.

The company, which has operated in Canada for 44 years, plans to refurbish most of its 1,400 restaurants in the country.

McDonald's plans new interior and exterior designs, and some of its restaurants will have fireplaces and flat-screen televisions.

The company said more than half of its restaurants would have been remodeled by the end of 2011, and most of the rest by the end of next year.

The news comes as McDonald's has been promoting its coffee aggressively, while Tim Hortons, Canada's No. 1 coffee-and-doughnuts chain, has been beefing up its food line-up.

 

Tim Hortons is now targeting the US market, where it is investing heavily in marketing and promotions. It reported strong quarterly US sales last month.

Tim Hortons has close to 3,200 restaurants in Canada.