Tims China (Tim Hortons China) has narrowed its net loss in the first quarter (Q1) ending 31 March 2025, benefitting from “cost optimisation” measures.

TH International, the sole operator of Tim Hortons coffee shops in China, reported a net loss of 58.9m yuan ($8.1m) in Q1 2025 compared to the 142.8m yuan loss reported in the same quarter of the previous year.

Adjusted corporate earnings before interest, taxation, depreciation and amortisation (EBITDA) losses almost halved, standing at 29.3m yuan ($4.0m) in Q1 2025 from a loss of 52.3m yuan in Q1 2024.

Company-owned and operated store costs and expenses reduced 19% to 257.2m yuan ($35.4m).

Total revenues stood at 300.7m yuan ($41.4m), a 9.5% decrease from 332.1m yuan in the corresponding quarter of 2024.

The decline was driven by store closures and reduced same-store sales.

Revenues from company-owned and operated stores contributed 254.8m yuan ($35.1m) to the total figure, a year-on-year fall of 14%.

However, other revenues were up by 28.6%, amounting to 46m yuan ($6.3m).

Net new store openings amounted to two, with a net closure of seven company-owned stores and a net opening of nine franchised stores.

System sales rose 3.5%, totalling 376.3m yuan ($51.9m). Loyalty club membership also grew by 25.7%, reaching 25.1 million members as of 31 March 2025.

Tims China chief financial officer Dong (Albert) Li stated: “We further improved our company-owned and operated store contribution margin and adjusted corporate EBITDA margin by 5.9% points and 6.1% points, respectively.

“Specifically, our food and packaging costs, labour costs, other operating expenses (as a percentage of revenues from company owned and operated stores), and our marketing expenses as a percentage of total revenues decreased by 4.3% points, 2.4% points, 1.1% points and 0.1% points respectively.”

In early 2025, TH International announced the first store opening in Nanchang, Jiangxi Province, China.