MANILA, Philippines – Canadian coffee and donuts giant Tim Hortons is set to come to the country to battle it out with established international and local fast food chains.
Restaurant Brands International Incorporated (RBI), Tim Hortons' holding firm, announced in a disclosure on Thursday, July 28, that it has established a master franchise joint venture company with TH Coffee Services Philippines Corporation, a group of local investors.
"We are proud to introduce the Tim Hortons brand to the Philippines, which is home to approximately 100 million people today," said Enrique Yap Jr, CEO of TH Coffee Services Philippines Corporation.
"Canada's favorite coffee will be a welcome addition to the market and we look forward to serving our guests across the Philippines," he added.
Canadian Ambassador to the Philippines Neil Reeder said that the "expansion in the commercial relationship is another testament to the robust ties that bind our two countries. We see this new Canadian investment in the Philippines as a platform that will create new opportunities for Canadian businesses and offer more jobs and opportunities for Filipinos."
As the master franchisee, the joint venture will be responsible for growing the Tim Hortons brand in the country. Tim Hortons is Canada's largest fast food chain with more than 3,000 chains in the country alone.
Besides its home market, the brand also has a presence in the US and the Middle East.
"This agreement signals an exciting era of growth for the Tim Hortons brand internationally and particularly in Southeast Asia," said Daniel Schwartz, CEO of RBI.
RBI is also the firm behind Burger King; it was created following a controversial $11.4 billion merger between Burger King Worldwide and Tim Hortons that raised concerns about US firms moving aboard for preferential taxes in 2014.
It is now one of the world's largest quick service restaurant companies with approximately $23 billion in sales and over 19,000 restaurants in approximately 100 countries.
While the firm did not disclose specifics of when it would open its first chain, it cited the success of many fast foods chains in the country as a key factor in choosing the Philippines as Tim Hortons' first foray in East Asia.
The Philippines is seen as a particularly attractive market for consumer brands, boasting a rising economy that hit 6.9% growth at the start of the year, the fastest growing economy in the region, driven mainly by consumer demand. (READ: Half of Filipinos splurge on food during payday – Lazada poll)
The consumer boom has also allowed local fast food chains, led by Jollibee and the Max's Group, to expand internationally. – Rappler.com