(Click here for previous coverage, and see this [image-nocss] issue of CSP Daily News for related coverage.)
Canadian Tire Corp. Ltd. has announced an agreement to build and operate gas bars and convenience stores at 23 service centers being redeveloped along Highways 400 and 401 in Ontario.
Under an agreement with the Province of Ontario, the centers will be redeveloped and operated by Host Kilmer Service Centres Inc., a partnership between Bethesda, Md.-based HMSHost, which provides travelers with food, beverage and retail services through 86 travel plazas throughout the United States and Canada and in 111 airports worldwide, and Toronto-based Kilmer Van Nostrand Co. Ltd., a company with diversified interests in private-equity, infrastructure, brownfield development and the sports and entertainment business.
As reported in a Morgan Keegan/CSP Daily News Flash yesterday, Host Kilmer has in turn chosen Canadian Tire as the petroleum and associated c-store partner for all 23 locations.
Host Kilmer "looked for a partner who could provide a variety of services for the fuel 'campus' component of these service centers while adding value to the consumer experience at these sites," Michael Jones, vice president of HMSHost, told CSP Daily News "Their brand and expertise for fueling and convenience store offerings were all strong factors in the decision to add Canadian Tire to the lineup of high-quality brands that will be found at the new travel centers."
Michael Medline, president of Canadian Tire Automotive, said, "Automotive is a key differentiator for Canadian Tire and a competitive advantage. These highways are the busiest in Ontario. We estimate the sites will generate six million incremental transactions a year."
Customers will be able to earn Canadian Tire Money through purchases at the pump and in the c-store, which will offer an assortment of items for drivers on the go. "There are 78 Canadian Tire stores serving communities in close proximity to the new service centers," added Medline. "And, there is great value for consumers and the company in offering Canadian Tire Money that can be redeemed within minutes of getting off the highway or at any of our 479 stores across the country."
The 23 service centers are anticipated to be the first Leadership in Energy & Environmental Design (LEED) Silver certified in Canada. Seven sites are currently under construction and, by the end of 2012, the plan projects 20 sites will be open for business.
In 2013, the network of centers is expected to generate sales revenue to HKSC of approximately $100 million annually or $9 billion over the 50-year term of the agreement. The infrastructure cost of redevelopmentdesign and construction of the initial 20 service centersis approximately $300 million. As part of the redevelopment program, Host Kilmer's responsibilities include financing a portion of the costs during the construction phase.
Redevelopment of the network of 23 service centers is planned in several phases. The seven centers in Phase 1, where construction began in early Nov. 2009, are scheduled to open with full dining and services in Sept. 2010. In the interest of meeting the needs of summer travelers, these centers will deliver fuel services and the adjoining Canadian Tire c-store beginning in July 2010. Construction on the subsequent three phases will begin throughout 2010-2012 and openings will follow beginning in 2011 and continue into 2013.
The final three centers will be redeveloped after 2018.
In total, up to 2,500 people will be employed by the entire network of service centers upon completion of the redevelopment program.
Host Kilmer has announced the lineup of restaurant brands in the current plan that will be found throughout the network of centers, including Tim Hortons, Casey's, East Side Mario's, Extreme Pita, Pizza Pizza, Teriyaki Experience, Yogen Fr a a' a' a'z, NY Fries, and the fine food market, Pusateri's.
The Ontario service centers are expected to feature international food brands as well: Starbucks Coffee, A&W, Burger King, Brioche Doree, Cold Stone Creamery and Quiznos.
The Market is a customized convenience store developed by HMSHost for specialty travel venues such as motorway travel plazas and airport concourses. The Markets along the Ontario service center network will feature an outstanding selection of fresh, hot and cold gourmet foods to go as well as newspapers, maps and magazines. Convenience and travel items, including everyday essentials, add to the many offerings and amenities travelers will now find along the highway.
This modern and best-in-class travel center experience will represent Host Kilmer's commitment to advancing sustainable building practices in North America. All centers will feature water-efficient landscaping and environment-friendly facilities, and be designed and constructed to achieve LEED Silver certification standards.
HMSHost is a part of Autogrill Group, a leading provider of food and beverage and retail services for people on the move, and which manages more than 5,500 stores in more than 1,200 locations worldwide.
Toronto-based Canadian Tire is comprised of five business units: Canadian Tire Retail, one of Canada's most-shopped general merchandise retailers, with 476 stores; PartSource, an automotive parts specialty chain, with 87 stores; Canadian Tire Petroleum, one of the country's largest independent retailers of gasoline, operating 273 gas bars, 268 c-stores and kiosks and 73 car washes; Mark's Work Wearhouse, one of the country's leading apparel retailers, operating 374 stores in Canada; and Canadian Tire Financial Services, which has issued more than five million Canadian Tire MasterCard credit cards and which markets related financial products and services for retail and petroleum customers.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.