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Tim Horton's and Cold Stone Creamery will soon be combining their menus at some locations.
The Ontario, Canada-based coffee and doughnut chain announced a co-branding deal with Scottsdale, Ariz.-based ice cream chain Cold Stone, owned by Kahala Corp.
A three-month test of two stores in Rhode Island led to a double-digit percentage gain in sales, said Kevin Blackwell, chief executive officer of Cold Stone parent Kahala Corp. The companies are developing menu items that incorporate products from both restaurants.
The companies are working with franchisees to build Cold Stone stores within 50 Tim Hortons locations, while another 50 of the coffee shops will go into the ice cream parlors. The restaurants should begin opening in the next 90 days. The renovations are expected to cost about $100,000 per location, Blackwell said.
Cold Stone has locations in stores in Hamilton and Oxford. Tim Horton's has a location in Monroe. The companies will be co-branding stores in Ohio as well as Michigan, New York, Maine and Connecticut, according to a news release.
Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.
Tim Hortons, a popular Canadian express coffee and doughnut chain, has announced that they will be co-branding with another popular chain, Cold Stone Creamery, an American ice cream parlor chain.

The deal includes a total of 100 new stores, at CA$121,690 (US$100,000) each.  Each company will have 50 stores that they will build as, or convert into, dual-operation franchises.  Each of the 50 stores will offer menus from each company and be located in 7 states, mostly in the Northeastern U.S.. 

Executives at Tim Hortons believe that mixing the two together is perfect because Tim Hortons makes most of their profit in the morning, while the Creameries are more popular in the evening. The idea proved successful when tested for three months in Rhode Island, in two different stores.

"We're very excited about the complementary daypart piece. It's something unique in what we see from a co-branding perspective," said Tim Hortons chief of operations, David Clanachan. Construction has already started and stores are expected to open in May.

Tim Hortons was founded by Canadian ice hockey player Tim Horton. The first store opened in Hamilton, Ontario in 1964. In July of 2007, there were over 2,700 locations in Canada and 500 in the U.S.. Cold Stone Creamery was founded in 1988 in Scottsdale, Arizona. There are over 1,400 operation, in locations such as Japan, South Korea and the U.S..