Why Tim Hortons is the Best Coffee Franchise in India in 2024?
Written By: Resham Daswani
Tim Hortons—heard this brand name before? Yes. It is the famous Canadian QSR chain that started with a master franchise agreement with AG Cafe and Gateway partners and entered the Indian market in August 2022.
So let us dwell into the amazing coffee chain Tim Hortons Cafe Franchise in India, how it entered the Indian market, the challenges it faced and how it overcame them, the advantages of starting a coffee franchise in India, and more.
About Tim Hortons Franchise in India: Here’s How You Can Own One in 2024
Tim Hortons, a Canadian coffee chain that entered the country for the first time in August 2022, has said that it intends to increase its presence there. The India franchise of the brand made its debut in the city of Mumbai with the opening of two new coffee shops.
Here are some reasons why Tim Hortons chose the Indian market to expand its presence.
- Market diversity: The middle class in India is experiencing tremendous growth despite the country's vast population. There is a considerable market for the consumption of coffee as a result of the expanding urban population and the growing amount of disposable income.
- Cafe Culture: In India, where the café culture is flourishing, many people are looking for coffee shops as locations to socialize, work, or rest. This fad presents an opportunity for international coffee brands, who may capitalise on it by creating pleasant café settings and providing customers with a selection of coffee beverages.
- Diverse menu options: This international coffee brand provides customers with a selection of hot and cold coffee beverages, as well as savory appetizers and sweet treats. They are able to appeal to a large customer base because they have diversified their offerings beyond only coffee.
- Competition and Market Growth: In India, the competition between international and local coffee brands spurs innovation and quality improvements, which are ultimately to the benefit of the country's coffee drinkers. The market is still expanding, which creates opportunities for new players to enter.
- Karnataka, India’s Coffee Capital: This state produces over 70% of the country’s coffee.
- Penetration into untapped markets: There are many locations in India where the coffee culture is gradually growing. Tim Hortons takes advantage of growing into untapped markets.
It is anticipated that by 2023, the market for cafe chains in India, which includes the sale of tea and coffee, will have surpassed 4,500 crore.
Trending: Tim Hortons expands its footprint by opening its third store in Bangalore.
Challenges They Faced and How They Overcame It
Like all international brands that entered the Indian market, the Tim Hortons franchise in India also faced certain challenges, which included:
- Competition with other fast food chains in the highly competitive Indian market.
- Rich food palette culture to have along with their coffee.
- Need to prepare freshly cooked food at the outlets.
- Boycotting of the brands on social media.
Here are some strategies they used to overcome these challenges:
- They had to reduce the pricing to average it in competition with McDonald’s and Starbucks.
- Offer food and beverages at a more pocket-friendly rate suitable to all classes of people.
- Used promotional campaigns like Roll up the Rim, which meant that there was a hidden price when a customer rolled up their cup of coffee.
Why Invest in a Tim Hortons Franchise In India 2024?
Tim Hortons is all set to expand its footprints across the country in the year to come so this is a growing and promising opportunity for all the entrepreneurs and coffee lovers who want to own a Tim Hortons Franchise of their own.
Here are some reasons you should start a franchise in India if you have the investment.
- The brand name of a well-established and globally known cafe, with a brand heritage of over 55 years.
- Products priced at a pocket-friendly rate.
- High-quality customer service
- Quick returns on investment.
- Training and ongoing support from Restaurant Brands International.
Wondering what the cost to start a Tim Hortons franchise in 2024 is? The minimum initial investment to start is between Rs 70 lakhs to Rs 17 crores. To apply as a franchisee, you must meet the financial requirements and have experience running a business.
Before investing in a Tim Hortons franchise in India, as a franchisee you must:
- Keep in mind the investment, and have the necessary qualification background, prior work experience and meet the space requirements.
- Have the ability to handle multiple locations at one time.
Top International Coffee Franchises That Have Grown in The Indian Market
International coffee brands have seen a potential market in India for expanding their presence for various reasons.
- Because of its enormous population, India is consistently ranked as one of the most populous countries in the world. This enormous consumer base presents substantial prospects for expansion for multinational coffee chain businesses.
- Coffee companies that operate on a global scale frequently adapt their product lines to local preferences and gastronomic norms. This may involve incorporating the flavours of a particular region, catering to certain dietary restrictions, or providing vegetarian alternatives.
- In general, international coffee chains provide customers with a diverse selection of beverages, snacks, and sweets in addition to meals and sometimes even entire courses. They are able to appeal to a large customer base because of their diverse offerings, which include more than just coffee.
- Coffee chains thrive in major Indian cities, especially those with high tourism and commercial traffic. They serve tourists and residents.
- Café culture is growing throughout India. Coffee shops are for socialising, working, and relaxing. International coffee chains can capitalise on this trend and offer unique café experiences.
- Many global coffee brands are well-known. Their brand recognition may entice Indian coffee drinkers seeking consistency and quality.
These are a few of the compelling reasons why you should choose to start a coffee franchise in India and some of the top international coffee franchises are:
- Starbucks - Though this brand does not franchise to individuals, you can apply for this licensed outlet at airports, supermarkets or universities. Starbucks is a franchised outlet of the Tata Group, which operates its outlets across the country. The initial investment to start a Starbucks franchise in India is between Rs 25-40 lakhs.
- Cafe Coffee Day - As other brands this also does not give direct franchises, but you can partner with them to start a CCD in your city in India. This is undoubtedly the most loved coffee chain in India. With an initial investment of above Rs 10 lakhs, reach out to the company to know more.
- Costa Coffee - In 2005, Devyani International Ltd introduced this novel aroma of coffee to the Indian market with the goal of achieving both passion and perfection at its core. The tradition of speciality handcrafted coffee was established in India thanks to Costa Coffee, which quickly became popular among India's coffee connoisseurs. To get into a partnership with a Costa Coffee franchise, you would require an investment between Rs 30-40 lakhs with a space of 1000-2000 sq ft.
- Barista - Barista Coffee Company, which was founded in the year 2000, is considered to be the forerunner of the coffee culture in India. The chain of Barista Cafés provides customers with an authentic coffee experience in an atmosphere that is cosy, welcoming, and unhurried. Cafés can also be found dispersed around the islands of Sri Lanka and the Maldives, in addition to India. To start a Barista franchise, you will need an approximate investment of Rs 30-50 lakhs.
- Dunkin Donuts - Many consumers choose Dunkin Donuts for coffee and doughnuts. The American multinational firm, currently known as Dunkin, serves coffee and doughnuts in all major countries. To start a Dunkin Donuts franchise in India, you will need an investment of around Rs 1 crores.
Q.1. Is it profitable to start a Tim Hortons Franchise in India in 2024?
Yes, you can expect a net profit margin of around 12-15% approximately based on the food sector.
Q.2. Who is the CEO of the Tim Hortons franchise in India?
Tarun Jain is the current CEO.
Q.3. What are the size requirements to open a Tim Hortons Franchise in India?
Tim Hortons offers standalone drive-thrus with or without seats, urban in-lines, and foodcourt-style venues to better serve consumers. The average shop is 1,000–2,300 square feet. The latest free-standing drive-through variants contain seating and are 1,380 to 1,600 square feet.
The Canadian coffee and doughnut chain Tim Hortons is often commonly referred to as Tim's or Timmie's. Tim Hortons, a Canadian hockey player who was born in Hamilton, is credited with founding the now-famous and fast-growing coffee shop and restaurant business in 1964. Tim Hortons was born in Hamilton.
In addition to providing freshly brewed coffee, Tom-Horton also provides customers with the option to purchase other types of quick food, such as doughnuts, cookies, burgers, and more.
Get in touch with us at FranchiseBazar for the latest coffee franchises in India for 2024.
Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.
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