Tims China Partners with Shanghai Metro to Open Tims Coffee Shops in “Line 14” Stations

Rhea-AI Summary

TH International Limited, operating Tim Hortons coffee shops and Popeyes restaurants in China, has announced the opening of the first seven Tims China stores in Shanghai Metro stations. The partnership will expand to include more Tims coffee shops in 'Line 14' stations, strategically targeting the 13 million daily commuters. The stores offer new and exclusive breakfast products, appealing to daily travelers, and are designed with subway train car elements to attract young trendsetters. The partnership provides great visibility to Tims China's brand, leveraging the world's largest metro system in Shanghai.

Insights

Market Research Analyst

The strategic move by TH International Limited to open Tims China stores in Shanghai Metro stations represents a significant expansion in one of the world's busiest urban transit systems. The high volume of daily passengers, estimated at 13 million, provides a captive audience and substantial foot traffic, which is essential for retail and food service outlets. The decision to target metro stations for expansion leverages the growing trend of 'on-the-go' consumption, particularly during morning commutes.

The introduction of new and exclusive breakfast products tailored for daily travelers can be seen as an attempt to differentiate Tims China from other competitors within the same space. By focusing on convenience and product uniqueness, the company is likely to attract a segment of the market that prioritizes quick service and novelty. This is especially relevant in a market like China, where consumer preferences are rapidly evolving and there's a strong emphasis on lifestyle and convenience.

Brand Strategist

Tims China's partnership with Shanghai Metro not only increases brand visibility but also enhances customer experience through the thematic design of the stores. By incorporating elements of subway train cars, the stores create a unique and memorable brand environment that resonates with young trendsetters. This demographic is highly valuable as they are often early adopters and influencers within their social circles. The design choice is a strategic effort to create a strong and distinctive brand identity in a competitive market.

Brand positioning in such a high-traffic environment can lead to increased brand recognition and loyalty, which are crucial for long-term success. The partnership with Shanghai Metro signifies a well-thought-out entry point that could pave the way for further expansion within China's urban transit networks, potentially increasing market share and establishing Tims China as a go-to brand for commuters.

Financial Analyst

Opening stores in high-traffic areas like Shanghai's metro stations could potentially result in increased revenue streams for Tims China. The strategic locations allow for a lower customer acquisition cost due to the natural foot traffic, as opposed to more traditional marketing and advertising strategies. However, it is important to consider the operational costs associated with such prime locations, as well as the initial investment for the thematic design of the stores.

Investors should monitor the performance of these new stores closely, as they could serve as an indicator for the scalability of this business model in other urban areas. The financial implications of this expansion strategy will become clearer with the release of future financial statements, which will reveal the impact on Tims China's bottom line. It is also important to assess the competitive response to this move, as it could influence market dynamics and consumer preferences.

SHANGHAI, China, Jan. 16, 2024 (GLOBE NEWSWIRE) -- TH International Limited (“Tims China” (Nasdaq: THCH)), the exclusive operator of Tim Hortons coffee shops and Popeyes restaurants in China, announces the opening of the first seven Tims China stores in Shanghai Metro stations. The partnership will be expanded to include more Tims coffee shops in “Line 14” stations.

The Tims coffee shops are conveniently located within the metro stations so commuters can grab a coffee on the go. The stores offer new and exclusive breakfast products, particularly popular with daily travelers.

As Shanghai has the world’s largest metro system, transporting approximately 13 million passengers across the city every day, the partnership provides great visibility to Tims China’s brand. This is amplified further by the design of the shops, incorporating elements of subway train cars, including a silver façade and flowing lights, appealing to young trendsetters and hard to miss.

(Tims coffee shop at Lujiazui Station on Line 14)

"The partnership between Tims China and Shanghai Metro is about more than just coffee. It is about providing a better commuter experience and it speaks for our efforts to think outside the box in terms of traditional consumption habits,” said Yongchen Lu, Tims China CEO. “We will continue to provide convenience for our guests throughout their day, wherever and whenever they want a cup of hot coffee."

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 https://www.timschina.com/

ABOUT SHANGHAI METRO
The Shanghai Metro is a rapid transit system in Shanghai, operating urban and suburban transit services to 14 of its 16 municipal districts and to Kunshan, Jiangsu Province. Served as a part of Shanghai rail transit, the Shanghai Metro system is the world's biggest metro system by route length, totaling 802 kilometers. It is also the second biggest by the number of stations with 408 stations on 19 lines. It ranks first in the world by annual ridership with 3.88 billion rides delivered in 2019. Over 10 million people use the system on an average workday.

Contacts

Investor Relations
IR@timschina.com

Public Relations
patty.yu@timschina.com

Follow @TimHortonsChina

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/a10c53ef-8ad1-45be-9ad0-8fa63b79b58c

FAQ

How many Tims China stores have been opened in Shanghai Metro stations?

The opening of the first seven Tims China stores in Shanghai Metro stations has been announced.

What is the partnership expansion plan for Tims China in Shanghai Metro stations?

The partnership will be expanded to include more Tims coffee shops in 'Line 14' stations.

What is the target audience for Tims China's new and exclusive breakfast products?

The new and exclusive breakfast products offered by Tims China are particularly popular with daily travelers.

How many passengers does the Shanghai Metro system transport daily?

The Shanghai Metro system transports approximately 13 million passengers across the city every day.

What is the unique design feature of Tims China stores in Shanghai Metro stations?

The stores are designed with elements of subway train cars, including a silver façade and flowing lights, appealing to young trendsetters.