Tims China Seeks Revival with CEO John Chen's New Framework, Despite Q2 2026 Sales Slump
Tims China, a subsidiary of TH International Limited, reported its second quarter 2026 financial results earlier this month, which showed a decline in sales and customer base. According to the company's latest earnings conference call transcript, Tims China's CEO John Chen is eager to revamp the business with his new framework for growth.
Addressing investors and analysts on August 18, John Chen outlined his vision for Tims China's future, stating that the brand has significant strength to build on despite market evolution and changing consumer habits. He emphasized the importance of reconnecting with customers and driving growth through a detailed plan.
The company's second-quarter revenue and system sales dropped by 21.7% and 15.1%, respectively, compared to the same period in 2025. Net new store openings totaled two during Q2 2026, including 15 Made-to-Order (MTO) stores that offset a net closure of 13 non-MTO stores.
Same-store sales growth declined by 17.8% year-over-year, with an average comparable ticket size drop of 1.5%. The decline was attributed to reduced subsidies from delivery aggregators and decreased marketing and advertising spending. Digital orders accounted for a higher percentage of total orders in Q2 2026 compared to the same period in 2025.
Albert Lee, Tims China's Chief Financial Officer (CFO), provided more detailed insights into the company's financial performance during his presentation. He highlighted the importance of improving customer loyalty and increasing average ticket size through targeted marketing efforts and menu enhancements.
John Chen stressed that he has spent considerable time studying the business, including visiting stores, talking to customers, and gathering feedback from partners and suppliers. This learning experience has equipped him with a comprehensive understanding of where Tims China stands today and what it needs to do differently moving forward.
The company's emphasis on digital capabilities remains strong, as seen in the increase in digital orders as a percentage of total orders from 90.4% in Q2 2025 to 91.8% in Q2 2026.
