TimHortons China is planning to go public in a deal that could rapidly speed up the chain’s roll out in the growing coffee market, with plans to open more than 2,500 new locations in five years, according to an investor presentation.
Restaurant Brands International confirmed Monday that its joint venture with private equity firm Cartesian Capital Group, which includes Tencent and Sequoia Capital as major shareholders, has entered into a business combination agreement with Silver Crest Acquisition Corp. The joint venture, officially named TH International Ltd. but often branded TimHortons China, opened the first TimHortons in China in Shanghai in 2019.
Restaurant Brands said the deal with Silver Crest, a special purpose acquisition company, would see TH International traded on the Nasdaq stock exchange.
Documents filed with the U.S. Securities and Exchange Commission pegged the implied value of TimHortons China at US$1.69 billion, with the expected value of the new combined entity when it starts trading at above US$2 billion.
Under the deal, TimHortons would bring its store count in China to more than 2,750 by 2026, according to documents.
That’s much more ambitious than previously announced plans. In 2018, Restaurant Brands said its partnership with Cartesian Capital would see more than 1,500 TimHortons restaurants in China in 10 years.
An investor presentation by TimHortons China included in regulatory filings said the company plans to nearly double its footprint from its current store count of 199 to 388 locations by the end of 2021.
The coffee and doughnut chain would continue to expand at a rapid rate, with 733 locations by the end of 2022, 1,163 by the end of 2023, 1,678 by the end of 2024, 2,203 by the end of 2,025 and 2,753 by year end 2026, according to the presentation.
“We will have nearly 400 units by the end of this year, opening one every 36 hours,” said TimHortons China chief executive officer Yongchen Lu, according to a transcript of the company’s investor presentation video filed with the SEC.
The restaurants would be a mix of flagship stores, classic stores and “Tims Go” locations, the documents said.
Meanwhile, the regulatory filings also offer a glimpse into how the brand – launched by a Canadian hockey player in the 1960s – performs in China.
The coffee and doughnut chain reported strong same-store sales growth of 42.5 per cent in the first quarter of 2021, the presentation said.
Still, the TimHortons menu has been tweaked to appeal to the preferences of the local market.
TimHortons China Chief Consumer Officer Bin He referred to the menu as “innovative classical products.”
“Timbits were changed to mochi holes, given original doughnut holes did not sell well in China,” he said in the investor presentation. “This face change makes Timbits an easier bite to reward myself in the afternoon and share with co-workers.”
Restaurant Brands said the proposed merger, which still requires regulatory approval, will position TimHortons to benefit from China’s increasing coffee consumption.
This report by The Canadian Press was first published Aug. 16, 2021.
Ottawa still wants us to stay home. But many travellers are heading to warmer pastures anyway
For many Canadians accustomed to a life of travel, the last year and half has only made their feelings of wanderlust grow stronger.
While the delta variant has complicated plans for a post-pandemic future where it’s safe to travel without reservations, many people are still planning to head south in the coming months.
Air Canada, Air Transat and Sunwing all say the upcoming fall and winter looks promising for travel to sun destinations.
“When looking to the sun market, we are very optimistic about our recovery,” Air Canada spokesperson Peter Fitzpatrick told CBC News in a recent email. He noted the airline is currently “observing demand growth that is above 2019 levels.”
Despite this increased demand, the federal government is still feeling uneasy about people travelling internationally.
In an email to CBC News, Global Affairs Canada said its still advising against non-essential travel outside of Canada and also pointed to practical concerns for those who do choose to go abroad.
“Additional travel restrictions can be imposed suddenly. Airlines can suspend or reduce flights without notice. Travel plans may be severely disrupted, making it difficult to return home.” Read more
A row of beach chairs in Varadero, Cuba, is empty of sun-seekers in March 2021. Cuba is relaxing restrictions for incoming Canadian tourists starting in mid-November. (Ramon Espinosa/The Associated Press)
Can a landlord cancel a lease because of tattoos? It happened to this student
A first-year Western University student who arrived in London, Ont., from Saskatchewan says she had a rental agreement cancelled at the last minute by a landlord who said she didn’t like her tattoos.
Kadince Ball, 18, started school at Western earlier this month and secured an apartment ahead of her move. She’d already signed a lease and paid her damage deposit, but shortly after she met her landlord Esther Lee in person, Lee told her that she couldn’t move in.
“A lease was signed and because I look a certain way, I was denied tenancy,” said Ball. “None of my tattoos are offensive. They are works of art. They are somebody’s works of art on my body.”
Lee told CBC News she moved to cancel the lease because she became “scared” after seeing Ball’s tattoos. The day the two first met in person, it was hot and Ball was wearing a tank top that showed her tattoos, which include a snake wrapped around a flower on her forearm, a cherub on one shoulder and a flower on the other shoulder
“It covered almost 70 per cent of her arm,” said Lee. “That’s why I don’t want to rent it to her because it’s scary, so scary.”
Ball eventually found another apartment. She’s more concerned with her studies than pursuing legal action. But a lawyer at the Community Legal Services Clinic at Western says if she chose to bring the incident to small claims court, she likely would have a case. Read more
Kadince Ball signed a lease for an apartment in London, Ont., before arriving from Saskatchewan for her first year at Western University. When she met the landlord in person, the landlord said she wouldn’t rent to her. She later told CBC News it was because of Ball’s tattoos. (Andrew Lupton/CBC)
How much air pollution is too much? The answer is lower than we once thought
The World Health Organization said earlier this week that the harmful health effects of air pollution kick in at lower levels than it previously thought.
As a result, the WHO is setting a higher bar for policymakers and the public in its first update to its air quality guidelines in 15 years.
Exposure to air pollution is estimated to cause seven million premature deaths and affect the health of millions more people each year, and air pollution “is now recognized as the single-biggest environmental threat to human health,” said Dr. Dorota Jarosinska, WHO Europe program manager for living and working environments.
Air pollution is now comparable to other global health risks such as unhealthy diets and tobacco smoking, WHO said. Read more
Vehicles drive on a highway as smog envelops the area of Lahore, Pakistan, on Nov. 11, 2020. The World Health Organization said this week that the negative health impacts of poor air quality kick in at lower levels than it previously thought. (K.M. Chaudary/The Associated Press)
Are you currently in a fight with your home insurance company over flooding or water damage? We want to hear your story! Email us at marketplace@cbc.ca.
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Tune in Friday at 8 p.m., 8:30 in Newfoundland and Labrador on CBC Television and CBC Gem.
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