Tims China, which operates the Tim Hortons brand in China, has credited increased demand for delivery and recent retail partnerships for its robust third quarter performance
Growing consumer recognition of the brand contributed to an 86% increase in registered loyalty club members | Photo credit: Tims China
Tims China has said the success of its outlet expansion across the country and ‘solid’ same-store sales highlight increasing consumer demand for its convenience-led coffee offering.
In the three months ended 30 September 2022, Tims China generated revenues of RMB 305.7m ($43m) – 68% higher than for same period in 2021.
The company opened 46 net new stores in the period to reach 486 across the country. Same-store sales grew 7.5%.
Tims China said there is increasing demand for delivery and takeaway services, with delivery orders rising 111%, while growing consumer recognition of the brand contributed to an 86% increase in registered loyalty club members (8.9 million).
However, trading restrictions and lockdowns as part of China's zero-Covid policy continued to adversely impact Tims China’s operations during the period, prompting temporary store closures, reduced operating hours and supply chain disruption.
“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. As we continue to build greater brand awareness and loyalty, we are also increasing the number of our loyalty club members, exemplifying our success in building a genuine community,” said Yongchen Lu, CEO, Tims China.
In July 2022 Tims China announced an agreement with China's largest convenience store chain Easy Joy to develop co-branded ready-to-drink (RTD) coffee products in more than 27,800 outlets.
The following month Tims China commenced the roll-out of Tims Express outlets within Easy Joy’s outlet network.
In November 2022, the company announced a two-year RTD retail distribution partnership with Freshippo, which will see the 300-strong grocery chain introduce co-branded Tims China coffee products online and via its bricks-and-mortar stores from December 2022.
“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,” Lu added.
Tims China completed its merger with special purpose acquisition company Silver Crest and began trading on New York’s Nasdaq stock exchange from 29 September 2022.