Canada-based multinational fast food restaurant chain Tim Hortons Inc. plans to debut in India by the middle of 2022, where competitors including Starbucks have gained traction in urban locales through their premium-play. The launch is well-timed to capture the resurgence in ‘out-of-home’ dining, says GlobalData, a leading data and analytics company.

Bobby Verghese, Consumer Analyst at GlobalData, comments: “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.”

GlobalData’s Q1 2022 survey corroborates this trend, with 56% of Indian respondents affirming that they consume food and drinks at coffee and tea shops at least once a week^*. Moreover, GlobalData forecasts the Indian coffee & tea shops market to outpace the Canadian market during 2023-2026^**.

Verghese adds: “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^**. 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.

“These aspirational youth are willing to spend more for premium consumption experience, as revealed by GlobalData’s 2022 survey, wherein 52% of Indian respondents said their spending on coffee and tea shops was quite/very high^*.”

Similar to Starbucks, Tim Hortons has considerable ‘brand pull’ among the large Indian diaspora and tourists. The company aims to capitalize on its strong brand recall among the sizable Punjabi expatriate community in Canada by opening stores in major cities of Punjab after its maiden outlet in the Delhi-NCR region.

Subsequently, the Toronto-based coffee and fast-food store plans to expand to Western India. In all, the trademark owner, Restaurant Brands International, aims to open 250 Tim Hortons outlets across 26 India cities over five years.

Verghese concludes: “Tim Hortons’ plans to ‘glocalize’ its international menu by adding an Indian touch that is a key success factor as revealed by GlobalData’s consumer behavior analysis. For instance, Tim Hortons’ Canadian outlets rely heavily on the early morning breakfast rush to drive sales.

“However, as GlobalData’s 2021 survey reveals, more than two-thirds of Indians consume breakfast at home, and only 4% have it at cafes or fast-food restaurants^***. Similarly, the company can draw insights from Dunkin’ Donuts initial teething troubles in the Indian market, with GlobalData’s case study on the fast-food chain highlighting that donuts — Tim Horton’s core product offering — are largely perceived in India as a sweet treat akin to cakes and pastries, which are occasional indulgences rather than daily foods^****.”

*Data taken from GlobalData’s Q1 2022 Consumer Survey – India, with 613 respondents, published in March 2021

**Data taken from GlobalData’s Foodservice Intelligence Center — Market Analyzers, accessed in March 2022

***Data taken from GlobalData’s Q4 2021 Consumer Survey – India, with 530 respondents, published in December 2021

****GlobalData’s Failure Case Study: Dunkin’ Donuts & More – Misaligned positioning kept the brand from forging a deeper connection with consumers