In June 2023, the chief executive officer (CEO) of TH International Ltd. (Tims China), was at a strategic crossroads. Since entering the Chinese market in 2019, the master franchisee of Restaurant Brands International Inc. (Tim Hortons) had scaled through a mix of company-owned stores, city franchising with corporate investors, and key account franchising with established corporations. However, the competitive landscape had intensified drastically. Rival chains—particularly local competitors—were expanding at an unprecedented pace that significantly outstripped Tims China. The CEO now needed to determine whether extending franchising rights to individual investors would provide the necessary acceleration in location growth to counter this mounting competitive pressure.
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