Tim Hortons opens first branch in Korea

Industry

Published: 12 Dec. 2023, 18:37 Updated: 12 Dec. 2023, 22:34

Tim Hortons opens first branch in Korea

The first Tim Hortons store in Korea, which is located near Sinnonhyeon Station, southern Seoul [TIM HORTONS KOREA]

Tim Hortons, dubbed “Canada's favorite coffee,” is set to debut in Korea this Thursday with its flagship coffee beverages costing more than they do in their home country.

The first branch will open its doors near Sinnonhyeon Station, in the vibrant Gangnam District of southern Seoul. A second branch is set to open near Seolleung Station, also in Gangnam, on Dec. 28.

Tim Hortons' trademark Original Iced Capp, priced at 5,100 won ($3.90), positions the budget-friendly brand as a “premium” choice in Korea. That nearly doubles the rates observed in Canada, where the same product is sold for $2.65.

“Korea holds significant cultural influence worldwide, and its dynamic nature makes it the most competitive, progressive and lively coffee market,” said Rafael Odorizzi, President of Restaurant Brands International (RBI)'s Asia-Pacific region, the parent company of Tim Hortons, during a media briefing on Tuesday. “We will strive to provide fresh coffee and food menus to the best of our abilities.”

Inside the first Tim Hortons' store in Korea gives Canadian ambiances [SEO JI-EUN]

Tim Hortons' arrival in Korea, which generated online buzz among curious locals as well as homesick Canadians, marks the seventh Asian country where the brand will be established, along with the Philippines, China, Thailand, Pakistan, India and Singapore. Tim Hortons has more than 5,700 stores across 17 countries.

The chosen location, in the iconic Urban Hive building with its dotted facade near Sinnonhyeon Station, showcases Tim Hortons' distinctive design concept featuring Canadian maple symbols and vibrant red accents.

The menu includes around 90 items, include 46 coffee drinks, 8 Iced Capps and 14 non-coffee beverages, along with doughnuts and sandwiches. Unique offerings tailored to the Korean market include the “Maple Latte” and three “Melt” sandwiches — the Maple Cheese Melt, Maple Ham & Cheese Melt and Creamy Spicy Chicken Melt.

Donuts offered at the first Tim Hortons' store in Korea [SEO JI-EUN]

Diverging from its reputation for affordability in Canada, Tim Hortons is adopting a “premium” pricing strategy in Korea. Notable price points include the Americano at 4,000 won and the Original Iced Capp at 5,100 won — reflecting an increase of 40 to 60 percent over Canadian prices. Local budget coffee brands like Paik's Coffee, Mega MGC Coffee and Ediya Coffee offer Americano prices of 1,500 won, 1,500 won, and 3,200 won, respectively.

In defense of its pricing structure, Tim Hortons asserts its approach as “reasonable” considering market dynamics, economic conditions and customer preferences, according to Hwang Mi-yeon, chief business officer of Tim Hortons Korea at BKR.

Inside the first Tim Hortons' store in Korea [TIM HORTONS KOREA]

“One thing that was very clear to us was Koreans are willing to try new brands, and also the white space in the market is what we have done for the last 60 years — combining great beverage and great foods,” said the APAC head Odorizzi, despite anticipating challenges in a saturated Korean coffee market. “Thus we believe that Tim Hortons can play very well to seize that opportunity.”

Tim Hortons aims to open 150 stores in Korea within the next five years, beginning with its locations in Sinnonhyeon and Seolleung stations. The company is also exploring the expansion of drive-through outlets to cater to diverse consumer preferences.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]