Tim Hortons’ mid-2022 launch in India is ‘well-timed’: GlobalData

The Canada-based restaurant chain will likely benefit from the resurgence of ‘out-of-home dining.’

Canada-based fast food restaurant chain Tim Hortons is set to open its doors in India in mid-2022, which GlobalData sees as a “well-timed” launch.

This comes as the analytics company expects Tim Hortons to capture the resurgence of “out-of-home” dining by the time of the launch.

“Tim Hortons’ launch will benefit from the revival of ‘on-trade’ guest visits and spending as the improving economic scenario boosts consumer confidence, and the relaxation of COVID-19 pandemic containment measures revive social gatherings at ‘out-of-home’ venues’,” Bobby Vergehese, Consumer Analyst at GlobalData said.

Citing its first quarter survey, GlobalData found that 56% of Indian respondents have affirmed that the consume food and drinks in coffee and tea shops at least once a month.

GlobalData also projected that the coffee and tea shops market in India could outpace its Canadian counterpart between 2023 and 2026.

 “While the Canadian coffee and tea shops market is highly consolidated, with Tim Hortons and Starbucks cornering the bulk of values sales, the Indian market is highly fragmented,” Verghese said.

“Despite this, specialist coffee chains, including Starbucks and Cafe Coffee Day, have carved out a niche for themselves as socializing hubs for urban working-age youth through their brand prestige, high-end ambience, and premium-quality offerings.”

He added that the youth are likely willing to spend more in exchange for a premium consumption experience, with 52% of Indian respondents saying their spending on coffee and tea shops was quite/very high.