(Yicai Global) May 31 -- The net loss at coffee chain operator Tims China widened in the first quarter of this year, despite higher revenue, due to the rising cost of opening more stores in the country, its earnings report showed yesterday.

The Shanghai-based firm plans to reopen its first Popeyes store in the second half of this year and will open about 10 this year, Beijing Business Today reported today.

Tims China announced in February that it had acquired the exclusive business rights in the Chinese mainland and Macau to the fried chicken brand Popeyes, which is owned by fast food giant Restaurant Brands International.

Popeyes entered the Chinese mainland in 2020 and opened nine stores across Shanghai, Hangzhou, and Nanjing. The stores experienced an initial surge in popularity but have all closed since the second half of last year amid fierce market competition. 

Tims China, the Chinese offshoot of Canadian coffee chain Tim Hortons, had 648 self-owned and franchised stores as of the end of the first quarter, 31 more than at the beginning of the year. The firm plans to raise the number to more than 1,000 by the end of this year, according to Beijing Business Today.

Tims China logged a net loss of CNY174.5 million (USD25.4 million) in the three months ended March 31, versus CNY151.3 million a year earlier, the firm said in its earnings report. Revenue rose 50 percent to CNY336.5 million.

The revenue growth was primarily driven by an increase in the number of company owned and operated stores from 403 as of March 31, 2022 to 551 as of March 31, 2023 and 8 percent sales growth for the stores in the first quarter, Tims China said.

Editor: Tom Litting