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  • Tim Hortons Brews Up Localization Strategy to Double South Korean Presence in 2022

    Tim Hortons Brews Up Localization Strategy to Double South Korean Presence in 2022

    Renowned Canadian coffee company, Tim Hortons, is ramping up its efforts to establish a stronger operational presence in South Korea. The firm’s objective is to more than double its store tally to a total of 50 locations within this calendar year. This strategy is underpinned by a recognition of the importance of localization in propelling its growth in an increasingly competitive coffee industry.

    Currently, Tim Hortons operates 24 outlets, with the majority situated in Seoul and its surrounding metropolitan areas. This year, the company plans to increase its store count by an additional 26, one of which will be a flagship “signature store”. This special location will feature a larger floor space and a more extensive food menu, setting it apart from the standard outlets.

    An Tae Yeol, the Chief Brand Officer of BKR, stated at a recent press conference that the company’s focus for this year would be on stores directly operated by Tim Hortons. This approach is part of their strategy to successfully navigate the fiercely competitive South Korean coffee market. The introduction of franchising is projected to commence next year, albeit with a select group of partners.

    Tim Hortons’ operations in South Korea are managed by BKR, which is also responsible for the operation of Burger King outlets in the country. Previously, the brand had set a goal to open 150 outlets within the first five years of its entry into the South Korean market in 2023.

    Questions & Answers

    What are Tim Horton’s expansion plans in South Korea?
    Tim Hortons aims to more than double its store presence in South Korea within this year, increasing its footprint from 24 to 50 outlets. The company plans to establish a flagship “signature store” with a larger floor space and a broader food menu.

    How does Tim Hortons plan to manage its growth in the highly competitive South Korean coffee market?
    Tim Hortons plans to focus on company-operated stores for the upcoming year as a strategy to remain competitive in the South Korean coffee industry. The company also plans to introduce franchising by next year with a limited number of partners.

    Who operates Tim Hortons in South Korea?
    Tim Hortons in South Korea is operated by BKR, the same company that runs Burger King outlets in the country.

  • Tim Hortons China Sees Q2 Recovery, Cites New Strategy And Franchise Growth As Key Drivers

    Tim Hortons China Sees Q2 Recovery, Cites New Strategy And Franchise Growth As Key Drivers

    TH International Limited, the company responsible for operating Tim Hortons coffee shops in China, has reported a slight recovery in the second quarter. This recovery has helped to counterbalance the economic strain resulting from store closures and decreased revenue from company-operated outlets.

    Financial Performance

    The system sales experienced a 1.4 percent increase since last year, reaching a total of $57.2 million. Despite this growth, total revenues decreased by 4.9 percent, amounting to $48.7 million. However, the company recorded a positive adjusted EBITDA of $300,000 and a reduced adjusted net loss of 16.2 percent, which amounts to $5.5 million.

    The company’s CEO, Yongchen Lu, stated the company’s “Coffee + Freshly Prepared Food” strategy as the driving force behind the improved results. New product offerings led to an increase in food revenue by 8.6 percent from last year. Consequently, the contribution of food revenue to system sales rose to a record 35.2 percent.

    Albert Li, the CFO, pointed out the efficiency enhancements in the company’s operations. The costs of food, packaging, and labor dropped as a percentage of store revenues. He attributed the improved financial performance to the refinement of store unit economics and operational efficiencies at both store and corporate levels.

    Growth and Challenges

    During the quarter, the company introduced 40 made-to-order stores while discontinuing 49 non-made-to-order outlets, mainly smaller Tim Hortons Express units. Despite this, the contribution from company-operated stores dropped to $3.8 million, a decrease from the previous year. This decrease can be attributed to store consolidation and declining same-store sales.

    Franchising proved to be a successful venture. Revenues from franchised stores increased by 50.7 percent, reaching $9.4 million. The franchise network expanded from 333 to 449 locations. In addition, other revenues, including sub-franchise and retail businesses, more than doubled compared to last year.

    Despite a net loss of $10.6 million, the management remains optimistic. They believe the operational enhancements and an improved food mix put the company in a position for steady growth.

    Questions & Answers

    What was the company’s strategy that drove its stronger results?
    The company employed a “Coffee + Freshly Prepared Food” strategy that particularly improved results through new product offerings.

    How did the company improve its financial performance?
    The company refined store unit economics and enhanced operational efficiencies at both the store and corporate levels.

    What changes occurred in the company’s franchising operations?
    There was a revenue increase of 50.7 percent from franchised stores. The franchise network also expanded to 449 locations from 333 in the previous year.

  • Tim Hortons Philippines Squashes Exit Rumors Amid Store Closures And Menu Changes

    Tim Hortons Philippines Squashes Exit Rumors Amid Store Closures And Menu Changes

    TH Coffee Services Philippines Corporation, the Philippine operator of the Canadian coffee chain Tim Hortons, has quashed rumors that it plans to exit the Philippines market. These speculations came about after several customers observed store closures and a reduced product line at multiple locations.

    Store Closures Stir Speculation

    Discussions about certain Tim Hortons outlets shutting down recently gained traction on social media. Notably, customers reported that the Uptown Mall branch in BGC had closed down. Similarly, others indicated that the outlets in SM Bacoor and SM Fairview had also ceased operations.

    Changes in Product Offerings

    Apart from the store closures, the company also sparked speculation when it discontinued its usual range of doughnuts, muffins, eclairs, and crullers last year. These items were traditionally imported from its Canadian factory. In a shift towards local sourcing, the coffee chain now offers breakfast sandwiches and pastries made locally, in addition to its coffee selection.

    Despite these changes, Tim Hortons continues to be a popular choice among local coffee enthusiasts. One customer said, “Tim Hortons is one of my go-to coffee places in Manila. But I’ve noticed in the past few weeks that their stores are slowly decreasing. It’s a shame if they disappear completely.”

    Tim Hortons Philippines Affirms Market Presence

    In light of these developments, Tim Hortons Philippines was quick to address the rumors. Enrique Yap Jr., CEO of TH Coffee Services, made it clear that the company had no intention of leaving the Philippines market. “We’ve heard the buzz regarding Tim Hortons closing in the Philippines, but rest assured, we’re not going anywhere. Our dedication to quality and service is stronger than ever,” he affirmed.

    Tim Hortons first entered the Philippine market in 2016.

    Questions & Answers

    What prompted the speculation about Tim Hortons exiting the Philippines market?
    The speculation started due to some observed store closures and a change in the product offerings of Tim Hortons in the Philippines.

    Has Tim Hortons Philippines confirmed its plans to exit the market?
    No, the company has categorically denied any plans to exit the Philippines market.

    What changes has Tim Hortons Philippines implemented in its product offerings?
    The company has discontinued its traditional range of imported baked goods and replaced them with locally sourced breakfast sandwiches and pastries.

  • Tim Hortons launches retail coffee range in South Korea

    Tim Hortons launches retail coffee range in South Korea

    Tim Hortons has launched its retail lineup in South Korea as part of its strategy to broaden the brand’s reach.

    The Canadian cafe brand’s retail coffee offerings include Original Blend whole bean coffee and fine grind coffee in five flavours: Original Blend, French Vanilla, Colombian, Maple, and Decaf.

    “Like all Tim Hortons coffees, our bagged coffee retail products start with 100 per cent premium Arabica beans that are roasted with care and blended to perfection,” said Mieka Burns, VP of consumer packaged goods at Tim Hortons.

    “Guests can already savour their favourite Tim Hortons beverages in restaurants and they can now complement that experience at home.”

    Tim Hortons’ whole bean and fine grind coffee are available at the Lotte Mart grocery store in Gangdong Millennial Jungheung S-Class Complex, and will soon be available in department stores and online.

    The Canadian coffee chain debuted in South Korea in 2023 and has quickly expanded to 16 locations.

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  • Tim Hortons plans ‘hundreds’ of restaurants across SE Asia

    Tim Hortons plans ‘hundreds’ of restaurants across SE Asia

    Japan’s Marubeni plans to open hundreds of Tim Hortons coffee shop franchises in three Southeast Asian countries, a move the trading conglomerate hopes will make around $300 million in sales by 2033.

    Tim Hortons, headquartered in Canada, currently has over 5,600 locations worldwide. Marubeni signed an agreement with Tim Hortons’ parent company, Restaurant Brands International, to develop and operate the new coffee shops in Singapore, Malaysia, and Indonesia.

    Marubeni plans to start opening franchises in Singapore and Malaysia in the next fiscal year beginning this April, while stores in Indonesia will begin opening in fiscal 2024. The plans will see hundreds of new Tim Hortons franchises in operation by 2033.

    Marubeni will make use of its existing retail network in Southeast Asia to support operation of the new businesses, which will have menus tailored to local tastes. Currently, Marubeni chiefly operates stores that sell pharmaceuticals and cosmetics.

    The Tim Hortons franchises will be the first businesses launched under a new corporate development division Marubeni established last year, focused on business growth in the Asian consumer market.

    Going forward, Marubeni plans to position restaurant operations as a core segment of its business expansion ventures.

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  • Tim Hortons teams up with Alibaba to woo Chinese coffee drinkers

    Tim Hortons teams up with Alibaba to woo Chinese coffee drinkers

    The operator of Canadian coffee chain Tim Hortons in China said on Thursday it had forged a two-year partnership with Alibaba Group’s grocery chain that will see the two launch co-branded products.

     Freshippo will begin sales next month at its stores, of which it has more than 300, as well as through its official app, it said in a statement. Products will include drinks such as Velvet Cocoa Coffee.

    Tims China, whose backers include Tencent Holdings, opened its 500th outlet in China last month and has set its sights on having a “profitable network” of 2,750 stores in the country by 2026.

    Even so it would still lag Starbucks, the dominant foreign coffee brand in China with 6,000 stores and which also has a wide-ranging partnership with Alibaba.

    Tims China was founded in 2019 by Cartesian Capital Group and Canada’s Restaurant Brands International, which also owns the Burger King and Popeyes brands in addition to Tim Hortons.

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  • Tim Hortons China to open coffee shops in Metro’s China stores

    Tim Hortons China to open coffee shops in Metro’s China stores

    Tim Hortons China (Tims China) is ready to further expand its presence in the Chinese market by entering a strategic partnership with Metro China, a joint venture of Wumart and Metro.

    Under the terms of the partnership, Tims China will become the exclusive coffee shop brand in Metro stores across the country.

    Tims China CEO Yongchen Lu said: “Through this agreement, we can reach millions of new customers to share our welcoming guest experience and extensive high-quality product offerings.

    “Over the next few years, we plan to strategically open Tims Go coffee shops in Metro China stores across 60 cities, growing our brand, revenue, and margins.”

    To mark the beginning of this partnership, Tims China opened seven Tims Go coffee shops across four cities using Tims China’s compact-store model.

    By next January, the partners intend to open at least nine Tims Go shops across six Chinese cities, namely Shanghai, Chengdu, Qingdao, Nanjing, Langfang, and Dalian.

    Additionally, the partnership will benefit Tims China with preferred site selection, delivery services, and complimentary marketing initiatives.

    With the new openings, Tims China will operate more than 335 stores across the country.

    Metro China deputy CEO Chen Zhiyu said: “We are delighted for Tims China to become one of our anchor tenants as we believe the brand will bring convenience and quality coffee products at great value to our members.

    “Our partnership will also create a strong link between daily shopping and coffee consumption in our stores that will greatly improve the overall shopping experience for our middle-class customers.”

    In March, Tims China secured funds in a financing round that was led by Sequoia Capital China and Tencent Holdings.

  • Tencent to help Tim Hortons China roll out over 1,000 outlets

    Tencent to help Tim Hortons China roll out over 1,000 outlets

    Chinese social networking and gaming giant Tencent is partnering with Tim Hortons China to expand the Canadian coffee house’s rollout.

    Tencent announced the partnership on its Chinese social media accounts without disclosing any financial details.

    Tim Hortons China has traded since early last year and is expected to use the new funding to set up a WeChat app as well as opening new physical locations outward from its highest concentration of stores in Shanghai. The firm has set a general initial target of 1500 outlets in the territory.

    The firm may be taking a leaf out of Starbucks’ former arch-rival Luckin Coffee’s playbook in focusing on digital business. Luckin expanded swiftly in China using the strategy before becoming embroiled in a financial fraud scandal.

  • Tim Hortons plans 1500-store China expansion

    Tim Hortons plans 1500-store China expansion

    Tim Hortons plans to open more than 1,500 of its coffee-and-doughnut shops in China over the next decade.

    The expansion seeks to capitalize on the country’s burgeoning coffee culture and is the latest international location for the coffee chain aiming to become a global brand.

    “China’s population and vibrant economy represent an excellent growth opportunity for Tim Hortons in the coming years,” the brand’s president, Alex Macedo, said in a statement.

    The chain signed a master franchise joint venture agreement with private equity firm Cartesian Capital Group for it to develop and open the restaurants. Financial terms were not immediately available.

    In 2012, Cartesian Capital partnered with Tim Hortons parent company Restaurant Brands International, which also owns Burger King and the Popeyes brand, and the Kurdoglu family to develop the burger chain in China. There are now more an 900 Burger King restaurants in China.

    City dwellers, especially young people and white-collar employees, in China increasingly drink coffee and have helped the café industry see strong growth, according to market-research firms.

    The turn to caffeine partly comes from lifestyle changes, people earning more money and more people living in cities, according to the firms.

    Consumers choosing coffee have helped fuel coffee chains’ expansion into China.

    Starbucks had 3,300 stores in 141 cities in China as of May and plans to total 5,000 by 2021.

    China is its fastest growing market and it opens a new store in the country every 15 hours.

    Whitbread, which operates Costa Coffee, has 449 of the coffee chain’s shops in China and plans to have 1,200 by 2022, according to its most recent annual report.

    While Tim Hortons is confident it can appeal to the Chinese, it’s latest international expansion plans haven’t convinced everyone.

    BMO Capital Markets analyst Peter Sklar said the expansion presents a growth opportunity for the company.

    “However, we believe there is significant uncertainty about whether the international rollout of the Tim Horton’s brand will ultimately be successful,” he wrote in a report.

    Tim Hortons has previously announced plans to expand to Spain, Mexico, Britain and the Philippines.

    “We remain concerned about its potential for success given RBI’s challenged expansion into the U.S. in the past,” Sklar wrote.

    The coffee chain is not as well known outside Canada than RBI’s fast-food brand Burger King, he said, adding to the uncertainty.

    Tim Hortons has more than 4,700 restaurants in Canada, the United States and around the world.

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  • Tim Hortons unveils $700M plan to renovate most Canadian locations

    Tim Hortons unveils $700M plan to renovate most Canadian locations

    Canadian restaurant chain Tim Hortons has opened the first of a new store concept which it plans to progressively convert most domestic stores to during the next four years.

    The chain, owned by Restaurant Brands International, has adopted a contemporary design look it has dubbed the ‘Welcome Image’ and is positioning as the biggest upgrade since the company was launched in 1964.

    Rolling out the new design across Canada will cost the company and its franchise partners an estimated $700 million (US$543 million) over the four years. There is no word yet on plans for the chain’s international stores, including in the Philippines where it has 11 stores trading already with plans for 24 more in the short term.

    The restaurant exteriors will be designed with natural looking, lighter, and more inviting materials, the company said in a statement.

    “Inside, restaurants will be decorated with artwork that reflects Tim Hortons values and history – including a commissioned portrait of Tim Horton, a mosaic of iconic brand images and a photo wall that features Tim Hortons unique coffee-sourcing and proprietary blending process. Guests will also enjoy upgraded, open concept seating that fosters the sense of community at the core of the Tim Hortons brand.”

    Slide to view the gallery below :

    “We want Tim Hortons to always be their home away from home,” said Alex Macedo, president of the Tim Hortons brand.

    “We know that Tim Hortons is a fundamental part of Canadian culture and we’ve worked hard with our restaurant owners to ensure we’re delivering exactly what our guests have come to expect from their favourite local coffee shop. Throughout the creative process, we conducted extensive market testing that revealed our new Welcome Image is not only approved, but loved by our guests across the country.”

    Tim Hortons has more than 4700 restaurants located in Canada, the United States, and around the world.

    Restaurant Brands International also owns Burger King and Popeyes.

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  • Tim Hortons Philippines launches in Bonifacio

    Tim Hortons Philippines launches in Bonifacio

    Tim Hortons Philippines has launched its first branch at Uptown Place Mall in Bonifacio Global City.

    It is the Canadian cafe and bakeshop’s first foray into Southeast Asia.

    Miss Universe Canada 2016 Siera Bearchell was in Manila for restaurant’s ribbon-cutting ceremony. With her were Department of Tourism secretary Wanda Teo, Tim Hortons president Elias Diaz Sese and executives of TH Coffee Services Philippines, which is the Philippines partner for Tim Hortons.

    The store is known for its signature pastries, including bite-sized doughnuts known as Timbits, and Iced Capp, an ice-blended coffee drink.

    Another speciality is the Double Double, a coffee with two servings of cream and two of sugar.

    There are also full-sized doughnuts, plus regular and breakfast sandwiches. Breakfast offerings also include muffins.

    Tim Hortons was named after its founder, a National Hockey League player, and first opened in Ontario in 1964.

    Restaurant Brands International announced its plans last July to launch the Canadian brand in the Philippines.

  • Tim Hortons plans expansion into Southeast Asia starting with the Philippines

    Tim Hortons plans expansion into Southeast Asia starting with the Philippines

    People craving a jolt of caffeine in the Philippines may soon be able to order a double-double at their local Tim Hortons.

    Restaurant Brands International, the multinational owner and operator of Tim Hortons and Burger King, said Thursday it has partnered with a group of investors to establish a master franchise joint venture company to sell the fast-food chain’s coffee and doughnuts in the Southeast Asian country.

    RBI chose the Philippines for its first stop in Southeast Asia because the country has a strong economy and a fast-growing quick-service market, said CEO Daniel Schwartz.

    The Philippines also boasts “a population that has an affinity for coffee and baked goods,” Schwartz added, including those of Tim Hortons’s, the company determined after months of market research.

    RBI didn’t say how many shops it plans to open in the Philippines. But chief financial officer Joshua Kobza said, “We aim to be a leader in the market.”

    Kobza hinted Tim Hortons would aim to match the level of some of its rivals in the local market — many of which boast hundreds of restaurants in the country, he said.

    The stores will serve many of the same staples as Canadian locations, like Timbits and iced capps, as well as some surprises, he added.

    “You’ll have a mix of the kind of products that we know and love here in Canada and some new products.”

    But details about any new offerings likely won’t be divulged until the first Philippines location opens, which Kobza and Schwartz said will open as soon as possible.

    RBI views Tim Hortons’z expansion to the Philippines as a gateway into other markets within the sub-region and other parts of the continent, noted Schwartz.

    Since Tim Hortons and Burger King merged into RBI in late 2014, the company’s been focused on taking the master franchise joint venture model that’s proved successful for Burger King and applying it to help Tim Hortons grow globally.

    “We think it’s a great opportunity,” Schwartz said.

    More international expansion announcements are expected from the company in the future, but all Schwartz will say is, “Stay tuned.”

    The restaurant chain has 4,438 restaurants, not including its 411 limited-service kiosks, as of March 31, 2016, the company’s latest quarterly report said.

    According to Tim Hortons’s 2015 annual report (when it had 25 fewer locations), the majority of those stores are in Canada, with 14.7 per cent in the U.S. and 2.6 per cent in the Middle East.

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