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Canadian coffee brand Tim Hortons’ China unit will open stores in the Chinese market at a faster clip after it recently secured investment from Tencent Holdings, the company said in a press release today without stating the amount it gained.
The unit plans to use the funds to further expand the construction of its digital infrastructure, work with Tencent to explore digital upgrades to its online channels, and quickly open more stores to meet consumer demand.
“We are very pleased to get investment from Tencent and look forward to tapping the huge potential of China’s coffee market,” the China unit’s Chief Executive Lu Yongchen commented about the cooperation. “Tencent built a unique platform that connects consumers’ online and offline lives. We will accelerate digital innovation, including the use of [Tencent’s] WeChat [messaging and payment] app, to bring customers a better consumption experience,” Lu continued.
Tim Hortons’ Toronto-based parent Restaurant Brands International, which formed in 2015, owns various long-established fast food chain brands like Burger King, Popeyes and others. It set up the joint venture Tim Hortons China in May 2018 in tandem with New York-based Cartesian Capital Group.
Tim Hortons opened its first store in China in Shanghai in February last year to officially enter the Chinese market. It now operates almost 50 stores in the country, most still in Shanghai. It also spans other Chinese cities like the port of Dalian in the northeast and the central transit hub of Zhengzhou.
With stores everywhere throughout Canada, the chain is the country’s number one eatery. Of its 4,800-plus stores worldwide, nearly 4,000 are in Canada, with over 5 million cups of coffee sold daily and 80 percent of Canadians consuming in the stores at least once each month.
China, however, is a far less of a captive market for this Johnny-come-lately, which lags far behind Starbucks, Luckin Coffee and other peers in store density. Therefore, the newcomer’s most important strategy is to open yet more venues. It will establish 1,500-plus locations across China in the next few years, its China unit said in December.
The chain’s eponymous co-founder, Miles Gilbert ‘Tim’ Horton (Jan. 12, 1930 – Feb. 21, 1974) was a Canadian professional ice hockey player for 24 seasons in the National Hockey League with the Toronto Maple Leafs, New York Rangers, Pittsburgh Penguins and Buffalo Sabres. Named one of the 100 Greatest NHL Players in history in 2017.
Source: Yicai Global
