The Canadian coffee giant Tim Hortons has raised a new round of funding in China, led by Sequoia China, and followed by Eastern Bell Capital. Tencent, also participated, increasing its investment in the company.
The amount of the new fundraise is undisclosed and used for opening more stores, building the brand’s digital infrastructure, presence, and more. In 2021, Tim Hortons plans to open more than 200 new stores, including standard stores, Tims Go, and theme stores. In May 2020, we previously mentioned that Tim Hortons received the first round of funding from Tencent, its digital partner in China, and announced its ambitious goal to open 1,500 stores overall across China in the next few years.
Two years into operating in China, Tim Hortons says it has reached storefront-level profitability with a footprint of 150 locations across 10 major cities. While retaining its classic products, the brand has been continuously launching localized innovative drinks and food and has been gaining more market share in China with nearly 3 million members on the WeChat Mini-Program. To appeal to young Chinese consumers, Tim Hortons opened an esports-themed restaurant with gaming giant Tencent and actively explored and extended the application scenarios of coffee.
“We are very happy to get the investment from Sequoia China and Eastern Bell Capital, as well as the increased investment from Tencent. We look forward to working together in the future to promote the healthy development of China’s coffee ecosystem. We are fully confident in the Chinese market and firmly believe that the rapid popularization of coffee in China will bring huge market potential,” said Lu Yongchen, chief executive of Tim Hortons China. The brand aims to provide consumers with more diversified choices of good coffee.
Tim Hortons views the Chinese market as a very important territory, being its second-largest market. According to the brand’s current total number of stores and its plans, Canada will account for 60% of the market, while China will account for more than 20%, focusing mainly on first-tier and second-tier cities.
