Tims China Generates 27% Same-store Sales Growth in June
August 08 2023 - 5:00AM
TH International Limited (“Tims China” (Nasdaq: THCH)), the
exclusive operator of Tim Hortons coffee shops and Popeyes
restaurants in China, reports 27% system-wide same-store sales
growth in June, driven by increasing customer traffic across its
network.
“Our team is firing on all cylinders, as shown
by our strong same-store sales growth in June,” said Yongchen Lu,
CEO of Tims China. “In fact, since we fully re-opened our store
network in February following Covid lockdowns, same-store sales
growth has averaged 19% system-wide.”
Augmenting its robust same-store sales growth,
Tims China accelerated its franchising strategy to fuel profitable
growth as it aims to enter at least 40 new cities across China in
2023. Franchising drives capital-efficient growth at attractive
locations with established local partners. Of the net new
restaurants opened this year, 70% are franchised with high-quality
partners in a variety of locations, including convenience stores,
real estate agency offices, and appliance stores.
“Our local partnerships are pivotal to our
growth, and we are positioned well for accelerating network growth
as we break ground across China through our franchising strategy,”
said Mr. Lu.
Tims China has also aggressively deployed its
“Tims Express” store format for new stores. Designed to be compact
and efficient while maintaining Tims China’s signature warmth and
vibrant atmosphere, the shops typically occupy an area of 20 square
meters, allowing significant flexibility in positioning. The
flexibility of this format helps Tims China drive absolute
convenience, building density in our network, particularly in
high-traffic areas where larger spaces are unavailable.
Powerful franchise
partnerships
Easy Joy
The expansion of Tims Express is significantly
driven by the company’s partnership with Sinopec’s Easy Joy,
China’s largest convenience store network with over 27,800
locations. There are currently 46 Easy Joy Tims Express stores,
which leaves significant potential for further growth. The
partnership allows Tims China to serve its guests while they are
driving (as most Easy Joy shops are co-located with gas stations),
thus enabling the company to connect in yet another occasion of
guests’ daily lives. In addition to driving growth of the Tims
Express format, this powerful partnership includes a previously
announced collaboration to develop co-branded ready-to-drink
beverages that will be available for purchase across the Easy Joy
network.
Tims Express in an Easy Joy Convenience Store
Century 21
Tims has opened 12 Express coffee shops to date
located within Century 21 China Real Estate offices in Chengdu,
Suzhou, Beijing, and Shanghai. The stores mark the beginning of a
collaboration to co-locate Tims coffee shops inside Century 21
offices with attractive street-level locations and high foot
traffic. With 10,000 offices across over 170 cities in China,
Century 21 is a prominent real estate brand focusing on the
residential market. The Tims Express shops offers a convenient,
high-quality coffee experience to consumers in search of housing or
simply wishing to stop in for a good cup of coffee.
The power of partnerships and people, seen here
with Haier Sanyiniao and Century 21
Tims Express offers a touch of class at the
Courtyard by Marriott in Hangzhou
Haier Sanyiniao
On March 14, 2023, Tims China and Haier signed a
strategic partnership to open Tims Express shops within selected
Sanyiniao stores. Sanyiniao is a Haier Smart Home brand. There are
currently three Tims Express stores co-located with Sanyiniao
stores in Shanghai, with many more planned for the future.
Ling Ka
Tims China’s most recent franchise partnership,
announced in May 2023 with Ling Ka (an affiliate of a real estate
developer and hotel operator), will bring Tims high quality coffee
products to hotel lobbies across China. Our first store in this
partnership is located in the lobby of the Courtyard by Marriott in
Hangzhou.
ABOUT TH INTERNATIONAL
LIMITED
TH International Limited (Nasdaq: THCH) (“Tims
China”) is the parent company of the exclusive master franchisees
of Tim Hortons coffee shops in mainland China, Hong Kong, and Macau
and Popeyes restaurants in mainland China and Macau. Tims China was
founded by Cartesian Capital Group and Tim Hortons Restaurants
International, a subsidiary of Restaurant Brands International
(TSX: QSR) (NYSE: QSR).
The company’s philosophy is rooted in
world-class execution and data-driven decision making and centered
on true local relevance, continuous innovation, genuine community,
and absolute convenience. For more information, please visit
www.timhortons.com.cn.
Contacts
Public RelationsICR,
LLCTimsChinaPR@icrinc.com
Follow @TimHortonsChina
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/27acac18-72dd-43c8-bc4b-2ab9937b1079https://www.globenewswire.com/NewsRoom/AttachmentNg/09cc05dc-6e1a-4a9d-8399-8f6f745e19a8https://www.globenewswire.com/NewsRoom/AttachmentNg/efc0730f-458c-4715-b7d4-9794f79bbcd9https://www.globenewswire.com/NewsRoom/AttachmentNg/542671af-3e6e-4c88-a824-8df7911f126a
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