Net Revenue of 306 Million! Tims China Reports Significant Growth in First Quarterly Report Since IPO

For professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat official account: cafe_style)

For more premium coffee beans, please add the private WeChat of FrontStreet Coffee, WeChat ID: qjcoffeex

Tims China Reports Strong Q3 2022 Financial Results

Today, the renowned coffee chain brand Tim Hortons China announced its third-quarter 2022 financial report, which is also the company's first quarterly report since its Nasdaq listing. The financial report shows that the company's total net revenue reached 306 million yuan this quarter, a year-on-year increase of 67.9%, setting a new record for single-quarter revenue.

Store Expansion Strategy

According to the financial report, 46 new stores were opened in the third quarter. As of September 30, 2022, the net number of stores reached 486, including 454 self-operated stores and 32 franchised stores, covering 27 cities nationwide. This indicates that Tims China's store expansion speed remains relatively stable, advancing at an average rate of opening one new store every two days. In October, the company also announced the opening of its 500th store nationwide.

However, affected by the pandemic, Tims China's overall store expansion speed this year has been slightly slower. It is understood that when Tims China entered the Chinese market in 2019, it set a target of "opening 1,500 stores in 10 years." In recent years, Tims China's target has changed to "increasing to 2,750 profitable stores by 2026," mainly focusing on directly operated stores, and then adjusting the proportion of franchised stores according to subsequent developments. According to this plan, it means opening an average of 500-600 new stores annually in the future, while the current number is still far from the target.

Tims Express Expansion

Tims China introduced that this year, Tims China's joint venture with Easy Joy Coffee, Tims Express (Lingfeng Store), has already opened multiple stores in Beijing, Shanghai, and Suzhou, with good performance. A Tims Express only requires about 20 square meters to set up a counter, making it easier to penetrate places with good foot traffic and coffee demand. It is expected that Tims Express will experience rapid growth in store numbers in 2023, with its proportion increasing year by year.

Strategic Partnerships

Following the cooperation with Sinopec's Easy Joy Coffee in July, on November 18, Tims China announced a two-year cooperation agreement with Shanghai Hema IoT Co., Ltd. According to the cooperation agreement, both parties will launch co-branded ready-to-drink coffee products, which will be exclusively sold through Hama Fresh's online channels and offline stores. This marks Tims China's second move in the ready-to-drink coffee market.

Ready-to-Drink Market Expansion

Tims China's continued investment in the ready-to-drink market may be due to seeing that the ready-to-drink coffee track has gradually become one of the popular tracks. As products that are convenient to carry and ready to drink, RTD has risen rapidly in recent years and can now be seen everywhere in many retail terminals.

Store Format Portfolio

Public information shows that in addition to Tims Express, Tims China's current other three main store formats are flagship stores (Jinfeng Store), standard stores (Red Maple Store), and grab-and-go Tims Go (Jiefeng Store). Among them, flagship stores (Jinfeng Store) typically cover about 200 square meters, mainly serving as the first store in cities to expand brand influence.

Standard stores (Red Maple Store) cover about 150 square meters and are distributed in shopping centers, communities, parks, and office buildings. Both flagship and standard stores offer a full range of freshly prepared food and coffee beverages. Tims Go (Jiefeng Store) is a small store-in-store format that had previously entered Metro China stores.

CEO's Perspective

Regarding this performance, Tims China CEO Lu Yongchen stated: "The company's strong performance is mainly attributed to customers' growing recognition of the absolute convenience, genuine localization and community focus provided by Tims China, as well as continuous innovation. In the future, with the continuous improvement of brand awareness and user loyalty, through external cooperation to innovate service formats and enrich product portfolios, it will expand the company's greater development potential."

Future Outlook

Although the golden market of coffee is growing rapidly, there is still a long way to go before reaching maturity. It is still difficult to see the "ceiling" at present. We look forward to seeing what legends Tims China will bring to Chinese consumers in the future.

Image source: Internet

Important Notice :

前街咖啡 FrontStreet Coffee has moved to new addredd:

FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou

Tel:020 38364473