--- title: "Tims China Appoints New CEO and Secures $55 Million in Funding" type: "News" locale: "en" url: "https://longbridge.com/en/news/289213531.md" description: "Franchise transformation still underway" datetime: "2026-06-09T15:44:25.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289213531.md) - [en](https://longbridge.com/en/news/289213531.md) - [zh-HK](https://longbridge.com/zh-HK/news/289213531.md) --- # Tims China Appoints New CEO and Secures $55 Million in Funding On June 9, Tims China (the Chinese operations of the coffee chain brand Tim Hortons) announced two major decisions: Lu Yongchen, the former CEO who had led the company for many years, was promoted to Group Chairman, shifting his focus to strategy and resource coordination; Zhang Guohua, former Chairman of Nestlé Greater China, succeeded him as CEO. Coinciding with the leadership change, the company also secured new financing of up to $55 million. One of the company’s shareholders, Tim Hortons Restaurants International GmbH (hereinafter referred to as "THRI"), plans to subscribe for newly issued senior secured convertible bonds. The funds will primarily be used for store network expansion, working capital, and operating expenses. In recent years, Tims China has been striving to carve out a differentiated position in the Chinese coffee market. Unlike brands such as Luckin Coffee and Cotti Coffee, which emphasize beverage efficiency and high-frequency, low-price offerings, Tims China focuses on a "coffee + warm food" model. By offering freshly made items like bagels, sandwiches, and wraps, the company aims to extend consumption scenarios and increase average transaction value. However, the warm food model imposes higher requirements on site selection, waste control, and fulfillment efficiency. After the Chinese coffee market has been thoroughly shaped by low prices and high-frequency subsidies, Tims China finds it difficult to simply replicate North American store practices. Financial performance reflects this pressure. In 2025, Tims China’s system-wide sales reached RMB 1.565 billion, a year-on-year increase of 7.6%; however, total revenue decreased by 5.4% year-on-year to RMB 1.316 billion, with a net loss of RMB 436 million. The coexistence of system-wide sales growth and declining revenue indicates an increasing proportion of sales from franchised stores and a decreasing contribution from company-operated stores, signaling a shift in the company’s revenue structure. During the year, the company closed 113 underperforming stores, raising the proportion of MTO (Made-to-Order) stores to 74%. Same-store sales remained on a downward trajectory, falling by 2.4% for the full year. Alongside the announcements of the leadership change and financing, the company’s first-quarter report showed no significant improvement. In the first quarter of 2026, Tims China’s revenue was RMB 257 million, a year-on-year decline of 14.6%; the net loss was approximately RMB 109 million. Although the loss narrowed compared to several previous quarters, the company has not yet escaped its "cash-burning" status. During the quarter, the company netted a closure of 21 stores, marking the first significant contraction in its store count. This is the reality facing Zhang Guohua as he assumes the role of CEO. For Tims China at present, what is needed is not just continuing to tell the brand story, but a thorough restructuring of product efficiency, supply chain capabilities, store operations, and the franchise system. Especially during the franchise transformation phase, store opening speed is no longer the sole metric. Whether franchisees are willing to join ultimately depends on single-store returns; the brand’s ability to expand sustainably also hinges on whether headquarters can provide stable product, supply chain, and operational support. This is also the signal behind the $55 million financing. On one hand, for a chain restaurant company that is still loss-making and requires continuous investment, the current external financing environment is not easy. The continued subscription of convertible bonds by core shareholders indicates that Tims China is still regarded as an important growth market within the global Tim Hortons system. On the other hand, this funding is not unrestricted ammunition for expansion. THRI plans to subscribe for up to $55 million in senior secured convertible bonds, which come with priority repayment and security clauses, rather than ordinary equity issuance or subordinated debt. This arrangement itself reflects capital’s cautious consideration of risk and return. This funding buys Tims China some time, but the window of opportunity will not be long. The Chinese coffee market continues to grow, and brand differentiation is accelerating. Low-price brands compete on scale and supply chain, while premium brands rely on brand power and scenarios. The middle ground is the most susceptible to being squeezed out. ### Related Stocks - [THCH.US](https://longbridge.com/en/quote/THCH.US.md) ## Related News & Research - [THCH Q1'26 Earnings: EPS estimate is (0.21) USD](https://longbridge.com/en/news/289044190.md) - [Tims China Announces First Quarter 2026 Financial Results | THCH Stock News](https://longbridge.com/en/news/289175853.md) - [Sigma Advanced Systems bags ₹208 crore export order for artillery shells](https://longbridge.com/en/news/289009306.md) - [TH International Q1 revenue falls 15% on store closures](https://longbridge.com/en/news/289175799.md) - [Eli Lilly Could Become The World's Top AI Firm? 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