The Globe and Mail reports in its Thursday edition that Tim Hortons is looking to switch to Canadian suppliers to buy items it currently sources from the United States, as the threat of tariffs forces businesses to rethink their supply chains. The Globe's Susan Krashinsky quotes Axel Schwan, president of Tim Hortons Canada and United States, saying, "The vast majority of goods that we use here in our restaurants in Canada are from Canada." But he added that the company is evaluating how to reduce the impact on franchisees of potentially higher costs for U.S. imports should the U.S. proceed with punishing 25-per-cent tariffs, leading to retaliatory measures by the Canadian government. While Mr. Schwan declined to specify which goods Tim Hortons plans to source from Canadian suppliers, the company imports some of its packaging from the U.S. Keeping costs in line has been just one element of a push to improve franchisees' profitability -- something Tim Hortons' parent company, Restaurant Brands International, has made a priority after significant declines two years ago. The fast-food chain has also worked to boost the bottom line by drawing in more customers with new menu items, improved food quality and faster service.
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