There are more than 500 Tims coffee stores in China, with revenue growth of more than 70% in half a year!

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Recently, Tims Coffee has officially settled in Dongguan, Guangdong Province, the 500th store in China. This is another milestone for Tims Coffee after Tims China will officially land on NASDAQ on September 29th.

Not long ago, Tims just opened two Tims "Coffee&Beer" stores in Shanghai, focusing on the "day curry and night wine" model. Affected by the epidemic, Tims store opening has been moving forward, now opening the 500th store, although far from occupying a large-scale advantage, but this is only the beginning.

Tims, founded in 1964, is a Canadian coffee brand. In 2018, Tim Hortons parent company RBI and Descartes Capital jointly established Tims China. In February of the following year, Tims China opened its first store in Shanghai's people's Square. It is a restaurant chain with many ready-made warm food cafes, mainly serving freshly brewed coffee, tea, cakes and baked warm food. When it first announced its entry into the Chinese market, Tims China aimed to open 1500 stores in 10 years, but after two years in Shanghai, it adjusted its goal to 2750 profitable stores by 2026.

To improve the strength of the store opening goal, or from the growing performance, Tims China achieved revenue of 57.257 million yuan, 212 million yuan and 643 million yuan respectively from 2019 to 2021. Despite being heavily affected by the epidemic in the first half of 2022, Tims still achieved revenue of 404 million yuan, an increase of more than 70.2 percent compared with 237 million yuan in the first half of 2021. These figures mean that Tims coffee has become a new force that can not be ignored in the Chinese coffee market, and it is accelerating towards its goal of 2026.

The opening of the first shop in Dongguan, Tims coffee adhering to the usual warm style. The store, located at No. 200 Hongfu Road, Dongguan City, is made up of a two-story building with an open terrace in the semi-open storefront. The iconic maple leaf pattern is integrated with the vitality of Lingnan city.

For a long time, Tims China has won the long-term support of many large shareholders, including RBI, Tencent Investment, Sequoia Capital China and Zhong Ding Capital, in addition to Cartesian Capital. Among them, Tencent not only invested twice, but also cooperated and supported many times at the level of business operation.

In March, Tims China announced that it had received a total of US $194.5 million from existing shareholders and other well-known institutional investors and investment commitments related to the listing of SPAC. Looking ahead, coffee is still one of the hottest consumer tracks, while China is the fastest growing coffee market in the world.

It is understood that the compound growth rate of China's coffee market from 2015 to 2020 is 13.8%, ranking among the Top1 of the beverage industry, and is expected to grow at a compound growth rate of 17.2% from 2020 to 2025, much faster than other soft drink tracks, reflecting the ultra-high prosperity of the development of the coffee industry.

Tims China is considering sinking the market while ploughing first -, second-and third-tier cities. At present, the main stores are standard stores, while the area of standard stores is usually 130-150 square meters, which belongs to large-scale stores and will consume a lot of money. Since it is going to sink and infiltrate constantly, whether the smart and fast TimsGo of 60-80 square meters in the future will become an important store model for its store expansion.

Chinese coffee consumption is infiltrating from the minority to the public, taking into account the medium price of brand quality and consumption power, which may be the way to obtain a large and high-quality consumer base. Tims China is good at seizing the mid-range price belt of the coffee market, launching coffee with a price of 15-30 yuan per cup, which is combined with warm food, so that consumers in more price ranges are willing to try to enter Tims stores. For example, breakfast time Tims offers drinks plus a 9.9 yuan bagel package.

After the successful landing on NASDAQ, the well-funded Tims is bound to accelerate the pace of expansion. Earlier, Lu Yongchen, CEO of Tims China, said that despite the rapid growth of the Chinese market, there is still a long way to go before the mature market. It is difficult to see the ceiling at present, and incremental development is expected to be fine in the coming decades.