Tim Hortons parent Restaurant Brands boosting presence in China
Global News
Restaurant Brands International says it's spending up to $45 million to boost its presence in China and spur growth in what the company sees as a promising market.
Restaurant Brands International says it’s spending up to $45 million on two deals intended to boost its presence in China and spur growth in what the company sees as a promising market.
The parent company behind Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs says the first deal will see it acquire Popeyes China from Tims China, which operates Tim Hortons franchises in the country.
RBI values the purchase at $15 million, noting Popeyes China has opened 14 restaurants in Shanghai since initially launching in August 2023.
The Toronto-based company says it plans to work with local partners and establish a “master franchisee” model for Popeyes similar to what is in place in other countries.
RBI also says it plans to partner with Cartesian Capital to invest up to $50 million in Tims China via three-year convertible notes, of which it will receive up to $30 million.
The moves come months after the company announced it would need to ramp up spending in China to propel further growth, and executives are striking an optimistic tone about the potential for expansion in the country.
“China is one of the most compelling long-term market opportunities for both our Popeyes and Tim Hortons brands. Popeyes China is off to a strong start and we are excited to unlock its development potential,” Asia Pacific President Rafael Odorizzi said in a statement. “… Today’s announcement allows Tims China to redouble its focus on quality restaurant development and providing Chinese consumers with our high-quality Tims coffee and food offerings.”
The investment in Tims China will grant RBI the right to appoint two directors to the Board and will see its equity ownership in the business increase to up to 18%, the company said.
