Tim Hortons plans to add more than 200 stores in China after a fundraising round from Tencent Holdings, Sequoia China, and Eastern Bell Capital. The coffee chain operator said on Friday that it will use the funds to build new stores, improve its digital infrastructure and its brand.
The Toronto-based firm competes with Starbucks Corp and Coca-Cola’s Costa in china. However, there isn't any difference between Tim Hortons and these multi-national chains. Therefore, to differentiate itself, Tim Hortons China sought to appeal to local taste buds with drink options such as lemon peach oolong tea and hot sandwiches, alongside its usual offerings such as doughnuts.
Tim Hortons had to differentiate itself and improve its brand positioning because the coffee market is crowded. Other chains like Starbucks had a strong footprint in china with it building what was once known as the biggest Starbucks store-coffee reserve in the world.
Additionally, Tim Hortons is considered new to the Chinese market. The coffee chain opened its first store in China two years ago and now has 150 stores in 15 cities. Differentiating its offerings definitely attract the Chinese demographic to its stores.
References:
1) Yu, S., & Goh, B. (2021, February 26). Tim Hortons plans to open 200 more restaurants in China and sell retail coffee on Alibaba. Retrieved February 28, 2021, from https://financialpost.com/news/retail-marketing/tim-hortons-to-open-200-more-outlets-in-china-after-raising-fresh-cash#:~:text=from%20our%20team.-,Tim%20Hortons%20plans%20to%20open%20200%20more%20restaurants%20in%20China,online%20marketplace%2C%20the%20chain%20said.
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