Canada’s coffee and baked goods brand Tim Hortons is set to open its first two stores in India on Thursday. Speaking to BusinessLine, Navin Gurnaney, CEO of Tim Hortons franchise in India, said the company planned to open 120 stores over the next three years in India with an investment of about ₹240 crore.
“My commitment to the Board is to open 120 stores in the next 3 years. Our average store costs about ₹2 crores. So with a 120-store plan, our investment in the market will be significant,” he told BusinessLine.
Delhi NCR, Punjab first
The coffee brand plans to launch its first store in New Delhi and move further North. After the two stores in Delhi NCR, Tim Hortons plan to expand further into Punjab and other parts of the country.
“We have already identified locations in North India, of which 10 will be opened by this year end in NCR and Punjab. Our aim is to expand our footprint to many hundred stores over the next 10 years in India, focusing on covering the metros, tier 1 and tier 2 cities,” he said.
Entry in India crucial
He believes the company’s entry in India is crucial. It will represent the brand’s 4th country in the APAC region, which already has over 350 stores. With the launch in India, Tim Hortons will be building on other international expansion after China, Saudi Arabia and the UK.
When asked, about the potential that Tim Hortons saw in a country which already has two other players—Starbucks and Pret A Manger— backed by big conglomerates like Tata Group and Reliance Retail, he said, “The Indian coffee market is expected to reach over $4.2 billion in size by 2025, with out-of-home consumption accounting for about 20 per cent. The Indian coffee retail chain market is expected to reach the $850 million mark by 2025, hence India is an important market for Tim Hortons. We are deeply committed to investing in community growth and progress in India.”
Balanced pricing approach
According to him, the differentiator will be the fact that Tim Hortons will be a premium brand with a balanced pricing approach. “We have a wide price point range in all categories. We believe India has many passionate on-the-go Gen-Z crowd and millennials who understand our brand and have probably experienced it during their travels to other parts of the world. Since they are thought-driven and need an inspirational space to bring their dreams alive, Tim Hortons will be a perfect place for them.”