On June 9th, chain coffee brand Tim Hortons China (hereinafter referred to as Tim Hortons China) announced that in order to match the company's medium and long-term strategic development plan and make management adjustments, former CEO Lu Yongchen has been promoted to Chairman of the Group, and Zhang Guohua has taken over as CEO, responsible for the overall operation of the Group and the implementation of board strategies and policies. At the same time, the company plans to issue a new senior secured convertible bond with a maximum principal amount of 55 million US dollars (approximately 372 million yuan), aiming to further expand its store network and meet the operating capital and expenses needs of the company and its subsidiaries.
Public information shows that in 2019, Tim Hortons, a coffee chain brand founded in Canada, opened its first store in China. Lu Yongchen has always been the leader of the brand's business in China, leading the brand to overcome the milestone of thousands of stores, creating a differentiated positioning of "coffee+warm food", and gradually opening up franchising.
According to a reporter from the Daily Economic News, Zhang Guohua has over 20 years of experience leading large consumer goods enterprises in China and is a veteran in the fast-moving consumer goods industry.
In addition, the 2026 first quarter report disclosed by Tims China shows that the company incurred a loss of over 100 million yuan in a single quarter, and the size of its stores shrank by more than 20 compared to the end of last year. The decline in same store sales is also expanding.
From the overall competition in the Chinese chain freshly brewed coffee market, foreign investment and local brands are in a fierce battle, with increasingly fierce competition in terms of price, products, business models, and other aspects. In this context, what Zhang Guohua can bring to Tims Tianhao China has become the focus of attention.
Store contraction, bidding farewell to the initial exploration stage?
According to the financial report, in the first quarter of 2026, Tims Tianhao China achieved a total revenue of 257 million yuan, a year-on-year decrease of 14.6%, and a net loss of 109 million yuan, expanding its losses compared to the same period last year. At the financial conference call held on June 9th, Li Dong, Chief Financial Officer of Tims Tianhao China, stated that the main reason for the decline in revenue was the closure of some underperforming direct operated stores, coupled with a decline in same store sales.
According to the company's financial report, as of the end of the first quarter of 2026, Tims Tianhao China had 1026 stores, a decrease of 21 from the end of last year.
At the aforementioned earnings conference call, Lu Yongchen stated, "The relevant sorting work for underperforming stores is expected to end in the second quarter of 2026, after which the company will resume net new store expansion." Regarding the widening decline in same store sales, Lu Yongchen attributed it to the significant reduction of subsidies by external sales platforms and the company's proactive tightening of marketing investment and reduction of promotional activities.
We expect that same store sales performance will improve in the second quarter and steadily improve in the following quarters of the year, "Lu Yongchen responded to analysts' questions regarding the future trend of same store sales.
In addition, Lu Yongchen also stated that in the early days, stores were mostly large stores to build their brand, and the rental cost accounted for a relatively high proportion. The rental structure for newly opened stores in 2024, 2025, and 2026 is more reasonable.
On June 9th, Tims Tianhao China announced that Lu Yongchen had been promoted to Chairman of the Group and Zhang Guohua had taken over as CEO. The appointment will take effect on June 15th, 2026.
According to the number of stores, China has become the largest international market in Tim Hortons' global system. Tims Tianhao China has also bid farewell to the initial exploration stage and entered a new stage of high-quality growth. ”Lu Yongchen stated during the aforementioned financial report conference call.
In the years under the leadership of Lu Yongchen at Tims Tianhao China, the competition in the domestic freshly brewed coffee market has become increasingly fierce. The company is facing price shocks from brands such as Luckin Coffee and Kudi, subsidy wars from food delivery platforms, capital entry pressure from companies such as Boyu Capital and Dazheng Capital, as well as cross-border pressure from new tea beverage brands such as Guming and Meixue Bingcheng.
In response to analysts' questions during the aforementioned earnings conference call, Lu Yongchen admitted that tea drinkers are more enthusiastic about entering the coffee industry than ever before, and the product prices are very low. However, he also emphasized Tims' unique "coffee+warm food" business model in China.
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