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Product cover image for Tim Hortons in China: Franchising to Expand a Foreign Coffee Chain

Tim Hortons in China: Franchising to Expand a Foreign Coffee Chain

Lucas Liang Wang, Melody Bingqian Zheng, Sihong(Vivian) Zhou

Product #:W48761_P
Supplier:Ivey
Discipline:International Business, Strategy
Setting:China, 2023
Details:Case (PDF) • 11 pages • 2026-04-02
Your Price:$9.71

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In June 2023, the chief executive officer (CEO) of TH International Ltd. (Tims China), was at a strategic crossroads. Since entering the Chinese market in 2019, the master franchisee of Restaurant Brands International Inc. (Tim Hortons) had scaled through a mix of company-owned stores, city franchising with corporate investors, and key account franchising with established corporations. However, the competitive landscape had intensified drastically. Rival chains—particularly local competitors—were expanding at an unprecedented pace that significantly outstripped Tims China. The CEO now needed to determine whether extending franchising rights to individual investors would provide the necessary acceleration in location growth to counter this mounting competitive pressure.

Learning Objectives

This case chronicles a global coffee brand’s expansion within a foreign market, focusing on its diversification of expansion modes from corporate ownership to franchising. Departing from the typical franchisor-centric perspective, the case offers a unique opportunity to analyze decision-making from both sides of the franchisor-franchisee relationship. It not only features the franchising decision on the part of the brand owner but also gives attention to the individual franchisee. By analyzing this case and addressing assignment questions, students will be able to do the following:
  • Understand the strategic rationales and risks for both the franchisor and franchisee.
  • Distinguish between various franchising models.
  • Evaluate the personal and professional implications of becoming an individual franchisee.
  • Practice making strategic choices regarding the adoption of franchising and the selection of alternative modes.
  • Learn the critical skills and expertise necessary for effective chain operation.
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Case Study: Tim Hortons in China: Franchising to Expand a Foreign Coffee Chain | Ivey Publishing