On December 14, the world-renowned coffee chain Tim Hortons China Business and the fried chicken brand Popeyes China Business (hereinafter referred to as "Tims Tianhao China") announced that they had reached a strategic cooperation with BESTORE, a high-quality snack brand, and the first store jointly built by the two parties opened in Wuhan on the 14th. In cooperation with BESTORE this time, TIMS Tianhao Coffee adopts the form of a fusion store and opens a small TIMS Express (Lingfeng store) in some BESTORE stores.
The smaller and lower-cost fusion store will help Tims Tianhao Coffee expand its stores more flexibly and reach more consumer groups. In the eyes of industry insiders, the cooperation between TIMS Tianhao Coffee and BESTORE will become an important node for it to extend the coffee consumption scene, attract more customer traffic, and enhance brand awareness and influence.
According to the cooperation agreement, the two parties will explore the opening of small Tims Express (Lingfeng stores) in some BESTORE stores to further expand the customer base and create more diversified consumption scenarios. At the same time, TIMS Tianhao Coffee will continue to expand its fusion stores. The relevant person in charge of Tims Tianhao Coffee revealed to "Consumption Titanium" that BESTORE is planning to select more integrated stores, and plans to open 3 stores in Wuhan around the end of the year. In mid-December, the two parties will plan to open the second BESTORE and Tims Express integrated store in Xi'an, and simultaneously deploy to the northwest market.
This cooperation is a strong alliance between two "industry giants".
As a leading brand of casual snacks in China, BESTORE's offline stores are no longer traditional snack stores, but a comprehensive new retail platform integrating service centers, delivery centers and experience centers. As of the end of September 2023, BESTORE has a total of 3,344 stores across the country, and its store network covers 181 cities in 23 provinces and cities across the country.
Tims Tianhao Coffee, which has only been in China for more than 4 years, is rapidly conquering the Chinese coffee market. As of September 30, 2023, the number of TIMS Tianhao Coffee stores nationwide reached 763, covering 56 cities, of which 174 were franchised stores.
In the view of Mr. Lu Yongchen, CEO of TIMS Tianhao China, BESTORE is the advocate and leader of high-quality products in China, and TIMS Tianhao Coffee is a firm executor of the "Coffee +" growth strategy. It is believed that the exploration of "coffee + snacks" will not only allow consumers to "eat and drink well", but also bring them the ultimate consumption convenience and rich consumption experience.
Mr. Zhang Guoqiang, Vice President of BESTORE, said, "We are very pleased to become a strategic partner with TIMS Tianhao China. TIMS China's professional international operation experience and rich localization innovation ideas will be a useful reference and supplement for BESTORE. It is believed that the sincere cooperation between the two parties based on common values will continue to promote the diversification of consumption scenarios and the enhancement of commercial value. ”
A more advantageous fusion store model.
The innovative combination of coffee and snacks is attracting more foot traffic. According to the relevant person in charge of TIMS Tianhao Coffee, on the opening day of the first store, the store was surging and lively. The cooperation between the two also brings an interesting consumption experience to consumers. The first batch of consumers who came to the store said, "Snacks and coffee are already very compatible, and it is quite fun for the two leading brands to work together." ”
In terms of the selection of store types, Tims Tianhao Coffee has deployed the Tims Express (Lingfeng Store) model, which has the advantages of a smaller footprint, lower cost and faster opening speed.
The relevant person in charge of Tims Tianhao Coffee introduced to "Consumption Titanium" that the high-efficiency Tims Express (Lingfeng store) shows the brand's signature warmth and vitality on the one hand, and on the other hand, it has the advantages of flexible store opening, lower cost and faster opening speed, covering an area of about 20 square meters. This type of store type helps Tims Tianhao China to increase store density and provide consumers with the ultimate convenience, and the Tims Express model is particularly flexible and efficient in high-traffic places with limited space.
In fact, the TIMS Express (Lingfeng store) model is a form of TIMS Tianhao China KA franchise.
Some industry analysts have pointed out that the KA franchise form of TIMS Tianhao China is full of characteristics, which can be said to be the "patent" of TIMS Tianhao China to a certain extent.
Through the form of KA franchise, TIMS Tianhao Coffee is moving forward quickly and cooperating with more strong corporate franchise partners. The relevant person in charge of Tims Tianhao Coffee told "Consumption Titanium", "Through the model of Tims Express integrated stores, Tims Tianhao Coffee has been able to cooperate with large chain enterprises, including BESTORE, Sinopec Yijie, 21st Century Real Estate, Haier Three-winged Bird, etc., so as to settle in popular spots and promote efficient growth." As of August this year, 70% of the new stores opened this year have been opened in cooperation with high-quality franchise partners. ”
Talking about the cooperation with BESTORE, the relevant person in charge of TIMS Tianhao Coffee told Consumer Titanium, "This cooperation is conducive to TIMS Tianhao Coffee to quickly exert its brand potential, expand more offline stores, and reach more consumer groups with high-quality services." ”
Coffee+" is an extension of the scene.
According to the financial report for the third quarter of 2023 released by TIMS Tianhao China, the total revenue in the third quarter reached 436.4 billion yuan, a year-on-year increase of 427%, the highest single-quarter revenue record since listing.
Behind the record revenue is TIMS Tianhao Coffee has won the love of Chinese consumers through the differentiated model of "Coffee +". Among them, the unique positioning of "coffee + warm food" has made TIMS Tianhao Coffee break the game strongly.
Different from other coffee brands, TIMS Tianhao Coffee Standard Store has perfect kitchen equipment and can provide freshly prepared warm food, which is not only closer to the dietary Xi of Chinese consumers who prefer "warm food", but also brings rich possibilities for diversified innovation of warm food.
The relevant person in charge of Tims Tianhao Coffee introduced to "Consumption Titanium", "The company's focus on the breakfast bagel series has deeply penetrated the minds of consumers, 19$9 bagels** provide a lot of sales for breakfast in the store. This year, the company has further extended warm food to lunchtime, introducing a minimum of 259 yuan of Yuanqi Bagel Castle** This kind of warm food** boosted the store's sales during lunchtime. At present, there has been a significant increase in breakfast and lunch, and in the future, the existing equipment will be used to provide more afternoon tea products suitable for the taste of Chinese people. ”
In addition to "coffee + warm food", TIMS Tianhao Coffee is extending the tentacles of coffee to more fields. In cooperation with BESTORE this time, TIMS Tianhao Coffee has creatively created a new consumption scenario of "coffee + snacks".
In the view of TIMS Tianhao Coffee, BESTORE is the advocate and leader of high-quality products in China, and TIMS Tianhao Coffee is a firm executor of the "Coffee +" growth strategy. This cooperation is conducive to the two parties to create the Matthew effect, achieve brand resonance through the new consumption scenario of "coffee + snacks", and provide consumers with better services.
Jiang Han, a senior researcher at Pangu Think Tank, pointed out that the innovative combination of coffee and snacks can provide consumers with more choices and increase the possibility of consumption. For Tims Tianhao Coffee, this cooperation can help it expand into new consumer groups and increase sales and market share. At the same time, this cooperation will also become an important node for it to extend the coffee consumption scene, attract more consumers into the store, and enhance brand awareness and influence.