Canadian QSR chain Tim Hortons set to open 250 stores in India
Premium- India is one of the world’s fastest growing markets for speciality coffee retail chains
NEW DELHI : Tim Hortons Inc., the largest quick-service restaurant (QSR) chain in Canada, will enter the Indian market with its first outlet in Delhi-NCR, before expanding its store count to 250 over the next five years, said a top company executive.
Tim Hortons will enter into an exclusive master franchise agreement with AG Café, the joint venture between global fashion and lifestyle retail conglomerate Apparel Group and emerging markets alternative investment manager Gateway Partners, Navin Gurnaney, chief executive officer (CEO), Tim Hortons India, said.
In India it will compete with Starbucks and Dunkin Donuts, offering a combination of coffee and foods. The first store is expected to open in June-July, Gurnaney, a former Tata Starbucks CEO, added.
India is the brand’s fourth country in the Asia Pacific.
Tim Hortons, operated by Restaurant Brands International (RBI) Inc., operates more than 5,100 stores around the world. RBI runs over 28,000 restaurants across more than 100 countries, and owns QSR brands such as Burger King, Popeyes, and Firehouse Subs.
After Delhi, it will open outlets in Punjab. “We’re going to build at least 120 stores in the next three years and quickly get to 250-300 in five years," Gurnaney said in an interview.
India is one of the world’s fastest growing markets for speciality coffee retail chains. The growth can be attributed to the changing lifestyle of the young population, rising disposable incomes, and increasing appetite to explore global cuisines, it said in a statement.
India is known for taking its beverages and food very seriously, said David Shear, president, RBI. “The delicious premium quality coffee and fresh food that guests around the world have grown to crave from Tim Hortons will be coming to India, marking this launch as a critical step in our international expansion plans," Shear added.
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The launch will translate into investments in market-leading talent and innovation, creating new jobs and providing a direct boost to the hospitality sector, said Gurnaney.
The market for cafe chains in India, including tea and coffee, is set to cross ₹4,500 crore by 2023, market researcher Euromonitor said in a report.
The pandemic-led lockdowns impacted sales for food services players, and postponed the launch for chains such as Tim Hortons. The market is now on a revival path. The food and beverage sector is seeing a revival after a long period of coronavirus-induced lull, said Nilesh Ved, chairman and CEO, Apparel Group.
This is an opportune time to introduce a new brand and have an aggressive plan to cater to the demand, he added.
Dubai-based Apparel Group operates more than 1,750 outlets across 75-plus brands such as Tommy Hilfiger, Charles and Keith, Skechers, Aldo, Nine West, Aeropostale, and Jamie’s Italian. It has stores in Kuwait, Bahrain, Oman, and Saudi Arabia besides India, South Africa, Singapore, Indonesia, Thailand, and Malaysia. Gateway Partners offers fund management and advisory services in Dubai and Singapore.
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