Tims China reported a net loss of RMB 143 million ($20 million) in Q1, despite a 3.1% increase in revenue, reports Caixin. The company’s same-store sales fell by 11.7% and self-operated store revenue only rose by 0.2% as leading coffee brands struggle to meet expectations amid economic uncertainties and shifting consumer behaviors in China.
After entering the Chinese market in 2019, Tims China attracted investments from Tencent Holdings Ltd., Sequoia China, and Zhongding Capital, eventually going public in the United States through a special-purpose acquisition company in 2022.
Initially lauded as the “next Starbucks,” Tims China pursued a “warm food + coffee” strategy and opened smaller stores. By the end of March 2024, it operated 903 stores, including 302 franchised locations, with ambitions to exceed 2,750 branded stores by 2026.