Tim Hortons aims to hook China on double doubles
Tim Hortons has arrived in China, joining the high-stakes battle to sell coffee in a massive country that mostly drinks tea.
The Canadian coffee-and-doughnut chain, run by Burger King-owner Restaurant Brands International Inc., plans to focus on “everyday value” as it muscles up against the ambitious plans of local and foreign players such as Starbucks Corp. Its also debuting at a tricky time as a diplomatic row brews between China and Canada.
While more consumers may be giving java a shot, only about a third of Chinese consumers bought hot coffee in 2017, according to a report from
Kantar Worldpanel.
Tim Hortons has its work cut out for it, said Jennifer Bartashus, an analyst at Bloomberg Intelligence. “It’s a tough market,” Bartashus said. “Competitors have been there for a long time, and already established some sort of reputation with the consumer.”
Tim Hortons is targeting to open 10 to 20 locations in Shanghai this year, Alex Macedo, president of the chain, said in an interview. The brand is trying to stand out from rivals with a robust food menu.
“Some of these other compet- itors, these coffee shops, they don’t have food at all,” Macedo said. “We’re going to migrate toward being more of a café destination for a place for you to sit and hang out for a while.”
Besides joining a crowded field that includes Dunkin’ Brands Group Inc., Coca-Cola Co.’s newly acquired Costa Cof- fee and local startup Luckin Coffee, Tim Hortons faces a slowing Chinese economy and complicated geopolitical situation.
Its origins as a beloved Canadian brand may run into some nationalistic consumers, given the political tensions underway currently.