Net income 306 million! Tims listed in China reported a substantial increase in the first quarter

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Today, TimHortons China, a famous coffee chain, announced its third-quarter results for 2022, its first quarterly report since its listing on NASDAQ. According to the financial report, the company's total net income reached 306 million yuan in the current quarter, an increase of 67.9% over the same period last year, setting a new high for a single quarter.

It can be seen from the financial report that 46 new stores were opened in the third quarter, and as of September 30, 2022, there were 486 net stores, including 454 self-owned stores and 32 franchise stores, covering 27 cities across the country. From this, it can be seen that the pace of store expansion in Tims China is relatively stable, opening an average of one new store every two days, and in October, the company announced the opening of its 500th store nationwide.

However, affected by the epidemic, the overall pace of store expansion in Tims China this year is still slightly slower. It is understood that when Tims China entered the Chinese market in 2019, it set a goal of "opening 1500 stores in 10 years", while in the past two years, Tims China's goal has been changed to "increase to 2750 profitable stores in 2026", and mainly direct stores, and then adjust the proportion of franchise stores according to the follow-up situation. According to this plan, it will mean that an average of 500 to 600 new stores will be opened each year in the future, but the current number is far from the target.

According to Tims China, Tims express (Lingfeng Store), a joint venture between Tims China and easyJet Coffee this year, has also opened a number of stores in Beijing, Shanghai and Suzhou with good results. A Tims Express only needs about 20 square meters to set up a counter, so it can easily infiltrate into some places with good flow of people and coffee demand. It predicts that the number of Tims Express stores will increase rapidly in 2023, and the proportion will increase year by year.

On November 18th, Tims China announced the signing of a two-year cooperation agreement with Shanghai Hema Internet of things Co., Ltd., following the cooperation with easy Jet Coffee of Sinopec in July. According to the cooperation agreement, the two sides will launch joint-style ready-to-drink coffee products and sell them exclusively through box Ma Xiansheng online channels and offline stores. This is the second time that tims China has made a move in ready-to-drink coffee.

Public information shows that Tims China in addition to Tims Express, the other three main stores are flagship store (Golden Maple Store), Standard Store (Red Maple Store) and buy-and-go Tims Go (Jiefeng Store). Among them, the flagship store (Jinfeng store) is usually about 200 square meters, mainly as the first store in the city to expand the influence of the brand.

The area of the standard store (Hongfeng store) is about 150 square meters, and it is distributed in shopping malls, communities, parks and writing buildings. Flagship stores and standard stores offer a full range of freshly prepared meals and coffee drinks. Tims Go (Jiefeng Store) is a small store-in-store model, which has long been in Metro China stores.

Regarding this result, Lu Yongchen, CEO of Tims China, said: "the strong performance of the company is mainly due to the customers' absolute convenience, true localization and communalization provided by Tims China, as well as the increasing recognition of continuous innovation. In the future, with the continuous improvement of brand awareness and user loyalty, through foreign cooperation to innovate service formats and enrich the product portfolio, the company will expand greater development potential.

Although the gold market of coffee is growing rapidly, there is still a long way to go before the mature market. At present, it is hard to see the "ceiling". We are looking forward to what kind of legend Tims China will bring to Chinese consumers in the future.

Photo Source: Internet