Tim Hortons will pilot a restaurant concept as part of a large expansion. (Canadian Press)

Tim Hortons is preparing to serve up a new restaurant format as part of its expansion plans over the next three years.

The new restaurant concept will be piloted in at least 10 existing locations.

The redesign is intended to more sharply define Tim Hortons image with what the company calls "enhanced finishes, fixtures and seating areas."

The iconic Ontario-based company known for its coffee, doughnuts and light meals says it expects 900 new stores of various formats by 2013.

They would include 600 stores in Canada where Tim Hortons already has more than 3,000 locations under its banner.

Up to 60 locations in Canada will be converted to include the Cold Stone Creamery concept in partnership with an American ice cream chain.

'Growth company'

The restaurant operator says it plans to spend $180 million to $200 million this year to support its growth initiatives.

The plans were outlined ahead of a Friday investors conference hosted by the Oakville, Ont.-headquartered company, which has 563 locations in the United States.

"Our strategies will continue to transform Tim Hortons, not only adding significant scale but also introducing important additional growth layers to our business platform to extend our position as a leader in the North American restaurant industry," said Don Schroeder, president and CEO.

"We are a growth company with significant long-term opportunities in Canada, and we are also excited by the prospects of continued profitable growth in the U.S., and potentially internationally in the longer term."

Much of the growth in Canada this year will be focused on Quebec, western Canada and major urban locations. In the United States, it will be focused on major regional markets such as New York, Ohio and Michigan.

The company says it plans to spread out from these bases, with about 30 per cent of its development activities between 2010 and 2013 in markets adjacent to its existing territories.