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Tim Hortons says its China expansion will include menu with congee, matcha

Coffee chain plans to open 1,500 stores in Asia over the next decade
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Alex Macedo, president at Tim Hortons poses for a photograph at the Hockey Hall of Fame Tim Hortons location in Toronto on Thursday, August 16, 2018. (Nathan Denette/The Canadian Press)

The president of Tim Hortons says a plan to conquer a crowded Chinese coffee market hinges on tailoring its menu to local habits and tastes B次元官网网址 including offering congee and matcha alongside signature items like double doubles.

Alex Macedo believes the coffee chainB次元官网网址檚 plan to open 1,500 stores in Asia over the next decade will face lofty competition from a slew of companies who have dominated the market as the continent warms to drinking coffee.

B次元官网网址淲e are late to the game for sure,B次元官网网址 Macedo said in an interview with The Canadian Press.

HeB次元官网网址檚 made regular trips to Asia to observe the operations of rival coffee purveyors, including U.S. heavyweights Starbucks, McDonaldB次元官网网址檚, and DunkinB次元官网网址 Donuts; Beijing-based start-up Luckin Coffee; and U.K. chain Costa Coffee.

B次元官网网址淭hey created an atmosphere that is almost get in and get out, and it is very fast paced,B次元官网网址 he said, noting the tables and ambience differ from that in Canadian and U.S. cafes, where patrons tend to sit and linger with their cup of java.

ChinaB次元官网网址檚 coffeehouse atmosphere contrasts against the B次元官网网址渉ome-yB次元官网网址 feeling that Macedo wants to build to encourage customers to spend as much as time as theyB次元官网网址檇 like at Tim Hortons Asian locations, a custom popular with many Canadian Tims regulars.

B次元官网网址淲e want our team members to be the most welcoming staff in China,B次元官网网址 said Macedo. B次元官网网址漌e want people to be able to sit in our restaurants for 10 hours if they want to with only one cup of coffee if they want to or not ordering a cup of coffee at all.B次元官网网址

The companyB次元官网网址檚 coffee has already proven popular in early overseas testing, he said, as have the brandB次元官网网址檚 iced cappuccino drinks.

They will be featured on the menu alongside products featuring matcha B次元官网网址 a tea-based powder that comes in a bright green hue and is a perennial favourite in Asia.

The food selection will reflect local taste preferences, he said, adding the company has noticed Chinese consumers donB次元官网网址檛 eat baked goods or doughnuts as frequently as Canadians.

A completely local breakfast and lunch menu will feature Asian-style rice porridge called congee.

B次元官网网址淎 lot of (Asian) coffee shops will sell a piece of cake or whatever, but they donB次元官网网址檛 have a kitchen like we do, so that is where we are spending most of our time, trying to figure out what to serve for breakfast and lunch,B次元官网网址 he said.

Despite some of the adjustments the brand will have to make, food industry expert Robert Carter thinks the expansion makes sense because ChinaB次元官网网址檚 growing middle class is willing to spend their increased wealth on eating out, and more people are starting to drink coffee over tea.

However, Carter believes Tim Hortons needs to find a balance between serving local cuisine and signature Tim Hortons treats in order to succeed in China.

He pointed to one menu item in particular: iced coffees.

Research, he said, indicates it is the fastest-growing area for coffee, particularly with younger consumers.

B次元官网网址淭hey will try traditional brewed coffees, but it is really those coffee-based, sugary beverages that are driving them into coffee shops, not only in China, but in North America,B次元官网网址 he said.

B次元官网网址淚 would expect Tims to have a pretty aggressive portfolio with those types of beverages.B次元官网网址

Tims announced an agreement last month with private equity firm Cartesian Capital to bring thousands of restaurants to China, with plans to open the first location in 2019.

Tim Hortons has previously announced plans to expand to Spain, Mexico, Great Britain and the Philippines.

Its U.S. expansion, however, appears to be faltering. Last month it closed four locations in Ohio, the latest in a string of closures south of the border in the past several years.

In June, after reports parent company Restaurant Brands International was scaling back on its U.S. expansion plans, Macedo said in a statement that the company has seen softer comparable sales growth in the U.S. in more recent quarters amid a very competitive environment.

Tara Deschamps, The Canadian Press

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