Canadian coffee chain Tim Hortons has signed up to a joint venture in China which will see it open 1,500 new outlets in the world’s second largest economy over the next 10 years, parent Restaurant Brands said on Wednesday.
Restaurant Brands, which also owns the Burger King chain, said the Chinese restaurants will be opened under a master franchise joint venture with private equity firm Cartesian Capital Group.
“China’s population and vibrant economy represent an excellent growth opportunity for Tim Hortons in the coming years,” President Alex Macedo said in a statement.
Tim Hortons, which has more than 4,700 across the world, has seen sales falling over the last two years.
In April, Restaurant Brands said it plans to spend $700 million to revamp the coffee chain, following a round of bad publicity over its management of outlets.
China is embracing cafes and switching from tea to coffee, prompting Starbucks Corp to say in May that it aims to triple China revenue and double cafe numbers to 6,000 by 2022.
Cartesian Capital Group is also already involved in Burger King’s Chinese franchise operation.
© Thomson Reuters 2018