The Canadian coffee chain Tim Hortons has entered Malaysia’s booming coffee market, opening its first two stores in the country in partnership with Marubeni. However, the chain has even bigger ambitions in one of Southeast Asia’s fastest-growing coffee markets.“Malaysia represents a significant potential due to its dynamic and evolving coffee culture where consumers are open to trying new food and coffee experiences, making this a prime market for our brand,” Vaibhav Punj, CEO at Tim Hortons MGCA, told Inside Retail. Fast-growing market Malaysia’s coffee scene has been experiencing a remarkable boom in recent years, with increasing demand for high-quality coffee experiences and a growing appreciation for international coffee brands. In June, Ediya Coffee signed a franchise agreement with a local partner to launch in Malaysia with three stores slated to open this year. The South Korean coffee chain aims to reach 200 locations in the country by 2030. Meanwhile, Luckin Coffee is also preparing to open its first Malaysian outlet.“In general, the market is extremely competitive, the industry is changing, and our guests’ expectations are becoming higher than ever, so we need to continuously adapt to stay relevant and continue growing,” said Punj. Punj said that before entering a new market, Tim Hortons conducts multiple rounds of rigorous qualitative and quantitative research. This research covers a broad range of customers to understand their cultural and behavioural preferences.The company made its Malaysia debut at IOI City Mall last month, before opening the second store at Sunway Velocity. “IOI City Mall is often patronised by families and office workers in the area, making it a popular destination for leisure and daily needs. This vast reach and vibrant atmosphere made it the perfect spot for our first outlet,” Punj said. He also added that the Sunway Velocity location aligns with the brand values, which is supporting spaces that foster community and inclusivity, as the mall is renowned for its autism awareness initiatives including Autsome, a calm pod where autistic patrons can rest in private. Localise strategyThe regional CEO said the company dedicated significant time to establishing a robust local supply chain and customising its products to meet local tastes.“A major focus was ensuring that all our products are sourced from Halal-certified suppliers, aligning with our strict no-pork, no-alcohol policy,” he added. “The menu has been adapted to incorporate local flavours while preserving its brand identity.“We spent months conducting multiple concepts and taste testing of our core products. This thorough approach has allowed us to introduce Tim Hortons with confidence, knowing that our products will resonate strongly with Malaysian consumers.” Tim Hortons Malaysia’s menu includes items such as the Sambal Grilled Cheese Sourdough Melt, Beef Ragu Bolognese, Pineapple and Kaya-filled Donuts, and localised Iced Capp flavours like Teh Tarik Tribute and Butterscotch Ondeh-Ondeh.“Our marketing strategy in Malaysia focuses heavily on community engagement, cultural integration, and support for local sports,” he added. Besides the menu, Tim Hortons also partnered with local artist Asyikin Abdullah (Lakar by Mekar) to feature her signature floral and batik motifs on the store’s wall. “From our furniture to our décor, our restaurants in Malaysia allow our guests to discover what makes the brand special and unique,” Punj said. “By honouring Malaysia’s rich heritage, we aim to create a strong emotional bond with our customers.”In addition to collaborating with the Malaysia Ice Hockey Federation, Tim Hortons also partnered with Mercy Malaysia, an international NGO, on the ‘Tims for Good MY’ initiative. All profits from Kaya Filled Donuts support the organisation’s efforts to provide medical relief to vulnerable communities.Bigger goal Tim Hortons currently operates more than 5800 restaurants across more than 15 markets worldwide. Malaysia marks the chain’s fourth Asian market after Singapore, South Korea and Pakistan. “Following our launch at IOI City Mall and Sunway Velocity, we plan to expand to key retail locations such as Aeon Bukit Tinggi, Sunway Pyramid, and more in the coming months,” Punj said. In addition to its standard in-store training, Tim Hortons is also investing in leadership, finance, and technology training to elevate its teams’ skills, ensuring they are well-prepared to “deliver exceptional service” as the business expands.The CEO added with the market entry into Malaysia, the company aims to establish a stronger presence and lay the groundwork for broader regional growth. Tim Hortons plans to open more than 100 locations in Malaysia in the next five to seven years. “Our goal is to build brand recognition and operational expertise in Malaysia that will serve as a model for future markets across Southeast Asia,” he concluded.