Tim Hortons plans to open 1,500 coffee shops in China

Tim Hortons plans to open more than 1,500 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 in China increasingly drink coffee and have helped the café industry see strong growth.

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.