Tims Coffee Rebranded as "Tims Tianhao Coffee"!

A Canadian Coffee Brand Adopts a Chinese Name

These days it is not only domestic Chinese brands that use Chinese names; even Canada's national coffee brand is adopting one to deepen its presence in the Chinese market. This reflects the sheer size of that market, with local brands wanting to protect their share and foreign brands vying to expand.

Recently, the official account of "Tims Coffee" was renamed "Tims Tianhao Coffee," the first time Tims Coffee has introduced a Chinese name since entering China. Although the company has not released related information yet, China National Radio reports that Tims Coffee said a Chinese name supports better localization and a deeper presence in the Chinese market, which will also help it enter lower-tier markets. The news is expected to be officially announced at the end of this month or early next month.

Tim Hortons is Canada's national coffee brand, founded in 1964, when legendary hockey player Tim Horton opened the first Tim Hortons (Tims) restaurant in the small town of Hamilton, Ontario, Canada. Today, Tim Hortons has grown into a brand that sells over 2 billion cups of coffee globally each year.

In 2018, seeing the prospects of China's coffee market, RBI, the parent company of the globally renowned coffee chain Tim Hortons, joined forces with Cartesian Capital to establish Tims China. In February 2019, the first store opened in Shanghai, marking its official entry into the Chinese market. According to public reports, when Tims Hortons entered China the Tims team was fully localized; for ease of memory, the Chinese team came up with the name Tims.

Tims China's Growth and Positioning

In May 2020, Tims China received an investment of over 100 million RMB from Tencent. In February 2021, it secured another financing round led by Sequoia China Fund, with Tencent increasing its investment. On September 29, 2022, Tims China went public on the NASDAQ through a SPAC.

Tims China has consistently differed from competitors in product mix, price positioning and store layout. Beyond coffee drinks, it launched warm food items such as bagels and sandwiches, widely praised by consumers. On price, its main products are concentrated in the 15–30 yuan range, neatly avoiding direct confrontation with Starbucks and Luckin Coffee.

According to Tims China's first financial report after going public, total revenue reached 306 million yuan in the three months ending September 30, 2022, a year-on-year increase of 67.9%. The net loss was 195 million yuan, with an adjusted net loss of 87.5 million yuan and a net loss rate of 28.6%.

In terms of store numbers, Tims opened 46 new stores in the third quarter, essentially a new store every two days. According to Narrow Gate Restaurant Eye, as of December 2, Tims China had 520 stores. When it entered the Chinese market in 2019, Tims China set a goal of "opening 1,500 stores in 10 years," meaning 1,500 stores by 2029. By August 2021, however, Tims China announced that the goal had changed to 2,750 stores by 2026.

Lu Yongchen, CEO of Tims Coffee China, explained, "The increase in store-opening targets comes from the domestic market being large enough. For example, when Tims China first opened about 200 stores in Shanghai, we found there was still much room for growth. When we implemented our plans, we discovered huge demand, and store performance was excellent, exceeding our expectations."

From Tims Coffee's rising store targets and its accelerating layout in the Chinese market to the renaming of its official account from "Tims Coffee" to "Tims Tianhao Coffee," it is not difficult to see Tim Hortons' determination to deepen its presence in China's coffee market and expand into lower-tier markets.

Image source: Internet

FrontStreet Coffee Recommendation

As international chains push further into the Chinese market, the specialty coffee scene keeps growing, and it is a good time to explore single origins. FrontStreet offers approachable entry-level beans for anyone who wants to know what a producing region really tastes like.

From Ethiopia, FrontStreet Natural Flower Queen comes from the Hambella area of Guji, Sidamo, using traditional natural processing for main flavors of berries, florals, jackfruit, melon and honey. FrontStreet Washed Gedingding Cooperative represents the washed side of Yirgacheffe: the cooperative sits in the Woka district on the southeastern edge of Yirgacheffe and became independent in 2012 with about 300 member farmers, and because the pulp is removed before drying, its jasmine, lemon acidity and berry notes come through cleanly. For a softer, sweeter cup, FrontStreet Cerrado Red Bourbon from Brazil shows typical creamy, peanut and cocoa flavors with good value, while FrontStreet Queen's Estate, a rare Yellow Bourbon, adds butter, sunflower seed, macadamia and almond aromas with a clean sugarcane sweetness.

From Colombia, FrontStreet Huila is a good entry point: Huila, in the southern Central Cordillera, is a mountain-ringed region planted above 1,500 meters where the country's most important rivers converge. FrontStreet also offers FrontStreet Sidra and FrontStreet Daduqi from Colombia, and from Panama, FrontStreet Boquete Gesha gives beginners a first taste of the classic orange-blossom honey character at a reasonable price.