Tim Hortons eyes spots next to Starbucks as it pushes toward 50 stores

Is Tim Hortons always next to a Starbucks?

The Canadian coffee chain's location strategy — planting stores near South Korea's dominant coffee brand — is drawing attention across the retail industry. Two out of every 10 Tim Hortons locations share a building with Starbucks, a pattern that reflects the chain's focus on high-traffic commercial districts where coffee demand is already proven.

Tim Hortons entered the South Korean market in 2023 and currently operates 32 stores, concentrated in Seoul and the greater metropolitan area. The company plans to expand to 50 locations by the end of the year.

The most striking feature of its expansion strategy is how close its stores sit to Starbucks. Six of the 32 locations are in the same building as a Starbucks outlet. A seventh is on the way: the Jongno Tower branch in Jongno-gu, Seoul, set to open Oct. 27, will share the building with Starbucks' Jongno R location.

The remaining 26 stores sit an average of just 107.7 meters from the nearest Starbucks — roughly a two-minute walk. Breaking that down: four stores are within 50 meters, six are between 51 and 100 meters away, 11 fall in the 101-to-150-meter range, three are between 151 and 200 meters, and two are more than 201 meters away.

The Seosomun-ro branch stands just 16 meters from the Starbucks at City Hall Station Exit 11. The Posco Intersection branch is 19 meters away, and the Sungshin Women's University entrance branch is 50 meters away. Even the farthest location — the Yangjae Station branch — is only 257 meters from its nearest Starbucks.

Industry watchers say the proximity is deliberate. By moving into major commercial corridors and office districts where foot traffic and demand from office workers are already high, Tim Hortons can build brand recognition and accessibility while tapping into the same customer flow that established players have already attracted.

Tim Hortons is not the first brand to follow this playbook. Ediya Coffee was long known for opening stores near Starbucks locations. Retail industry observers note that Starbucks and CJ Olive Young tend to anchor prime, high-traffic spots, which naturally draws other brands to set up nearby.

As it adds stores in key commercial areas, Tim Hortons is also working to sharpen its competitive edge in a saturated domestic coffee market. The chain is moving beyond its traditional image of coffee and doughnuts, expanding its menu to include sandwiches, wraps, soups and salads. Through its "Tim's Kitchen" concept — where food is prepared in-store — it is positioning itself less as a coffee shop and more as a café where customers can also sit down for a full meal.

"In a saturated coffee market, the most effective way for a new brand to build recognition quickly is to enter prime commercial zones that already have guaranteed foot traffic," an industry official said. "Expanding the menu to capture meal demand on top of coffee appears to be a strategy aimed at increasing how much use customers get out of each visit."