Globally, most coffee is consumed in Western countries, but Asian countries are quickly gaining ground as several coffee chains battle for dominance and attention in these growing markets.

While Starbucks is still the leader in China, Tim Hortons is also rapidly opening its shops. The Canada-based company, called Tims China in the Chinese market, has partnered with several major local players, including Alibaba, which will offer Tims China coffee on the Freeshippo platform. The partnership has been signed for two years.

The company has also entered into an agreement with China’s largest convenience shop chain, Easy Joy, to jointly develop branded ready-to-drink coffees.

Our recent partnerships and collaborations with Sinopec Easy Joy and Alibaba Group’s Freshippo provide us new avenues for growth, particularly with the compact ‘Tims Express’ store format, RTD coffee, and other co-branded products.

Yongchen Lu, CEO, Tims China

Recently, Tims China opened its 500th branch in the country. The figures also show that the company’s aggressive approach to shop openings is paying off. In the three-month period that ended 30 September 2022, the company posted sales of $43 million, up 68% from the same period last year.

Tims China reported an increase in demand for delivery and takeaway services, with the former growing by 111%. The company also recorded an 86% increase in registered loyalty club members, indicating that consumers know and trust the company.

We are very pleased to report strong financial and operational results for our first quarter as a public company. Our robust top-line performance reflected contributions from store network expansion combined with solid same-store sales growth which we attribute to growing customer recognition of the absolute convenience, true local relevance, and continuous innovation offered to Tims China customers.

Yongchen Lu, CEO, Tims China

The Chinese market is becoming increasingly competitive, with several large local and international players vying for customers. Starbucks already has more than 6,000 outlets, followed by local chain Luckin Coffee, which was restructured after an accounting scam two years ago. Other popular local coffee companies include Seesaw Coffee, Coffee Box and Manner Coffee.

Covid-19 is a critical factor in the daily operations of coffee chains as companies are forced to close their shops on a daily basis. Tims China’s financial report shows an average of 23 closures per day. On the other hand, the closures have forced companies to look for other sales channels.

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