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The Spoon

Daily news and analysis about the food tech revolution

Tim horton's

Tim Horton’s Secures Investment to Expand Its Tech-Centric Coffee Model in China

Canadian coffee chain Tim Horton’s has secured an undisclosed amount of funding from Chinese tech company Tencent, according to AgFunder News. The company originally announced the news via a post on Weibo.

Tim Horton’s China unit will use the new funds to build up its digital assets and infrastructure as well as expand its number of locations in the Chinese market. Currently, it operates about 50 stores in that country and says the investment from Tencent will let the company hit its target number of 1,500 stores sooner than originally planned, though a specific time wasn’t named. 

Tim Horton’s first entered the Chinese coffee market in February of 2019. 

Digitizing the coffee market in China is a big business right now. Tim Horton’s faces competition from Luckin, which has always pursued a digital-first model that emphasizes mobile ordering, AI-powered self-service coffee terminals, and delivery. (Side note: Luckin is currently at the center of an accounting scandal that is raising questions about future growth.)

Starbucks is also a major competitor in China, having partnered with Alibaba’s food delivery platform Ele.me to grow its delivery footprint. Starbucks has also partnered with Alibaba’s Heme supermarkets to operate its own ghost kitchens, and launched its very first to-go-centric Express store in Beijing last year. 

Tim Horton’s new investment funds come at a time when all these companies will need to double down on their tech investments to make the coffee experience as to-go-centric as possible. The COVID-19 pandemic has placed things like contactless payment, delivery, and mobile orders into the center of future restaurant operations. Major chains that want to keep growing will need to spend more on these technologies in order to meet consumer demand for both convenience and safety, not only in China but in the rest of the world, too.

Burger King, Tim Hortons Aim for Faster Drive Thrus and More Personalized Tech in 2020

Restaurant Brands International (RBI), parent company of Burger King, Tim Horton’s, and Popeye’s, is doubling down on its efforts to modernize its brands and in doing so keep pace with competitors in the world of quick-service restaurants. On its earnings call this week, RBI’s CEO José Cil highlighted several milestones as well as goals for the future around making the drive-thru line faster, stores more digital-friendly, and individual customer orders more personalized. 

Tim Horton’s, a chain largely based in Canada and with a scattering of U.S. locations, is currently testing new digital menu boards in drive-thrus, using technology to gather information like weather, time of day, location, and more, and use it to better tailor offerings to each individual customer. If that sounds like a familiar story, it is. McDonald’s more or less started this wave of AI-powered drive-thru efforts last year when it acquired Dynamic Yield in 2019. Others, including KFC and Dunkin’, are also testing their own iterations of the drive-thru of the future.

Beyond the fact that personalized menu boards are supposed to improve order accuracy and offer more relevant upsell items to each customer, they are also practically speaking, a little easier for the restaurant to manage. Speaking on this week’s call, Cil pointed out that the company’s current menu boards cost “millions of dollars each year” to print and update, and that they are time-consuming to change out, as the task has to be done manually by staff members multiple times per day. “Switching to digital menu boards in the drive-through will free up time for team members to focus on serving guests while ensuring that the proper information is always on display,” he said.

Tim Horton’s already has these menu boards in “several hundred stores” and the company will install them “across most drive-thru locations over the next 12 to 18 months.” As well, the company is revamping its loyalty program for digital orders, moving it into its second phase where rewards and offers will be more tailored to the individual customer. Cil noted that this second phase will “drive digital registration and a lot of powerful tools like sales intelligence and one-to-one marketing that we’ll use to develop stronger relationships with our guests and drive incremental sales over time.”

Getting more intelligence behind its digital platforms to improve personalization is a goal for RBI across all its brands as the company strives to compete with the McDonald’s and Starbucks of the world. At Burger King, this will be in the form of the brand’s Burger King of Tomorrow Restaurants, the chain’s newly redesigned store format that emphasizes things like digital ordering via self-service kiosks and double drive-thru lanes. Cil said on the call that the company opened more than 800 of these stores in 2019.

Burger King of Tomorrow joins a long list of restaurants revamping their store formats to be more tech-centric and better able to fulfill delivery and takeout orders, which will account for the lion’s share of restaurant sales in the coming years. To that end, Burger King also offers delivery at 4,200 of its stores and works with multiple third-party services (DoorDash, Postmates, etc.) to fulfill orders.

As mentioned earlier, a large part of this technology push is to keep up with other QSRs running billion-dollar-plus digital businesses, namely Chipotle and McDonald’s, which are making AI and more customized menus a major part of their strategies. If 2019 was the year off-premises ordering became table stakes, 2020 will (probably) be the year personalization takes that title. RBI’s latest moves and future plans underscore how much the company wants its brands to be ahead, or at least with, the pack when that happens.

Speaking of personalization, you can hear my conversation about how it will change the restaurant business at Customize, the Spoon’s food personalization summit, in just two weeks.


Report: Impossible Whopper Boosts Burger King Sales, Will Popeyes Embrace Plant-Based Meat?

Yesterday Restaurant Brands International (RBI), owner of fast-food chains Burger King, Popeyes, and Tim Horton’s, announced its Q3 2019 Earnings Results.

The report showed that Burger King’s sales increased roughly 15 percent globally for the quarter. In the U.S., the launch of the Impossible Whopper drove 5% comparable sales growth, which Jose Cil, CEO of RBI, noted was the “strongest level since 2015.”

This isn’t exactly surprising. Impossible Whopper sales reportedly boosted traffic by over 18 percent to the BK in St. Louis which first tested the plant-based burger. Reports show, that the alt-meat burger is also leading to higher ticket sales and attracting more millennials and lapsed visitors (like The Spoon’s Chris Albrecht) to the fast-food giant. The RBI Earnings Results seems to indicate that this boost in traffic/ticket amount has continued as the Impossible Whopper rolled out to all Burger Kings nationwide.

Not all was rosy in the report, though. Tim Horton’s had what Cil called “a challenging quarter,” reporting only 0.1 percent growth compared to 2.8 percent growth in the same quarter a year earlier. This comes at the same time that the Canadian fast-food chain nixed Beyond Meat products from its menu, except in Ontario and British Columbia, just months after adding the plant-based meat to 4,000 of its restaurants.

These two facts might have nothing to do with each other. However, the report shows a rapid downturn for Tim Horton’s after the chain had a surprisingly strong Q2, in which its success was attributed, at least in part, to its adoption of Beyond Meat patties. Tim Horton’s rolled out the plant-based meat nationwide in July (that is, during Q3), so maybe consumers across Canada didn’t flock to the Beyond Meat offerings in the same way they did in the initial test markets?

Interestingly, Popeyes had one of its best quarters in nearly two decades, thanks to the viral popularity of its chicken sandwich. Next up, RBI might well continue its history of experimenting with alternative protein and launch a plant-based chicken sandwich. But it better hurry if it doesn’t want KFC or Chick-fil-A to beat it to the punch.