The operator of Tim Hortons in China has reported strong annual revenue and outlet growth with registered loyalty club members increasing nearly 90% in 2022
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Tims China opened 227 net new stores in 2022 to reach 617 outlets | Photo credit: Tims China
Tims China has reported strong 2022 sales and outlet growth as consumer demand for the Canadian coffee chain across the country continues to rise.
The coffee shop operator reported an 89% increase in registered loyalty club members during the 12 months ended 31 December 2022 to reach 11.3 million, up from 8.9 million at of the end of September 2022.
Alongside 57% year-on-year revenue growth to reach RMB 1bn ($146.6m), Tims China opened 227 net new stores in 2022 to reach 617 outlets, 547 of which are company operated.
More than half of the new stores (131) were opened in Tims China’s fourth quarter.
The company, which reached 500 outlets nationwide in October 2022 before reaching 600 in December 2022, plans to surpass 1,000 stores by the end of 2023.
“Despite the difficult circumstances, we managed to grow total revenues year-over-year by 34.6% for the fourth quarter, expand our store network to 617 across 39 cities, launch a series of new bestseller products such as ‘mulled wine flavoured brewed coffee’ and ‘salted egg yolk wrap’, and grow our registered loyalty club membership to over 11 million by year-end. With the end of ‘zero-Covid control measures’ by the PRC government authorities in December 2022, we are very excited to embark on a new era of development while continuing to drive strong revenue growth, win market share, and achieve margin expansion in the coming quarters,” said Yongchen Lu, CEO, Tims China.
In February 2023, Tims China announced it would gain the exclusive rights to develop and sub-franchise fast-food chain Popeyes across China. Tims China said the transaction, which closed on 30 March 2023, will bring significant operational and development synergies and further growth potential to the business.