Tim Hortons plans to open more than 1,500 of its coffee-and-doughnut shops in China over the next decade.
The expansion seeks to capitalize on the country’s burgeoning coffee culture and is the latest international location for the coffee chain aiming to become a global brand.
The chain signed a master franchise joint venture agreement with New York-based private equity firm Cartesian Capital Group for it to develop and open the restaurants. Financial terms were not immediately available.
In 2012, Cartesian Capital partnered with Tim Hortons parent company Restaurant Brands International, which also owns Burger King and the Popeyes brand, and the Kurdoglu family to develop the burger chain in China. There are now more an 900 Burger King restaurants in China.
Consumers choosing coffee has helped fuel coffee chains’ expansion into China.
Tim Hortons has previously announced plans to expand to Spain, Mexico, Great Britain and has already established a branch in the Philippines.
The coffee chain is not as well known outside Canada than RBI’s fast-food brand Burger King, he said, adding to the uncertainty.
Tim Hortons has more than 4,700 restaurants in Canada, the United States and around the world.
SOURCE: CBC MANITOBA