Starbucks rival coffee chain Tim Hortons to launch in India

Tim Hortons, which competes with Starbucks, Costa Coffee and Café Coffee Day, is actively scouting for space to launch its first flagship store in the country in prime locations of Delhi

Popular Canadian coffee chain Tim Hortons is all set to launch in India by June-July, according to a top official of the company.

The quick service restaurant chain, which competes with Starbucks, Costa Coffee and Café Coffee Day, is actively scouting for space to launch its first flagship store in the country in prime locations of Delhi.

“We are looking to open 120 stores in the next three years and then 250-300 in the next five years,” said Navin Gurnaney, India CEO, Tim Hortons.
After Delhi, the company plans to open stores in Chandigarh and other cities in Punjab and then later in Western India.

“We have great brand equity in Northern India, especially Punjab given the high number of Punjabi expats and NRIs in Canada and hence it makes sense to introduce our stores in the region initially,” said Gurnaney.

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The company plans to launch outlets in Mumbai and other major cities in Western India by the spring of 2023. Tim Hortons is currently present in over 5,100 locations worldwide, and with this launch, India will represent the brand's fourth country in the Asia Pacific region.

The company is making a play for rising coffee consumption in India, which Gurnaney said is growing at a CAGR of 8-9 percent and is expected to reach $4.2 billion in the next two years. “About 20 percent of this market is out-of-home and hence presents a big opportunity for companies like us who have a differentiated offering,” he added.

Tim Hortons besides its coffee offering is betting on food to get a foothold in the Indian market. According to Gurnaney, the quick service restaurant’s menu will feature global food items, however, with an Indian touch.

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“The millennials, Gen Z, want a global experience when they visit a global brand, however, it has to appeal to the Indian palate. The consumer might want a wrap but they want the filling to match the taste of Indian cuisine,” he added

The coffee chain is positioning its brand in the premium segment in India, a segment where Starbucks, Costa Coffee, and a few other brands already operate.

“In Canada, we have 4,300 stores and we have been serving coffee there since 1964, while our nearest competitor only has 1,100 stores. Hence, we are capable enough and will take initiative to grab our share of the expanding coffee pie in India,” said Gurnaney.

Starbucks operates over 250 outlets in 28 cities in India and is eying faster expansion in the country. It is also experimenting with new formats such as smaller stores and drive-through outlets in the country.
All the stores, said the CEO, will be company-operated, however, the company is looking to tie-up with a few development partners locally who can help the company in the quick setting up of stores.

Tim Hortons will invest about Rs 3.5 crore-7.5 crore in setting up one store in the country.​