Timmy's Coming to China

More coffee coming to China via Tim Hortons in the next 10 years

When you go to China and tell them you're Canadian, the first thing they say is Norman Bethune, the doctor from Gravenhurst, Ontario who performed battlefield operations during the Sino-Japanese war for the Communists.

But maybe soon their association with Canada will be Tim Hortons.

That's because the Canadian coffee and doughnut chain is planning to open more than 1,500 restaurants in China in the next 10 years through an agreement with a private equity firm.

The chain is named after hockey player Tim Hortons

Tim Hortons is named after the Canadian hockey player who, after retirement set up a fast food chain that originated from Hamilton, Ontario. There are now over 4,600 restaurants in nine countries.

"We have two main priorities at Tim Hortons: building and strengthening our brand in Canada; and expanding our iconic Canadian brand to the rest of the world," the chain's president, Alex Macedo, said in a statement.

"China's population and vibrant economy represent an excellent growth opportunity for Tim Hortons in the coming years."

Sounds like the hopeful belief that there are 1.2 billion people in China and if they each buy my product for a dollar...

And for Macedo to say China's economy is "vibrant" shows his lack of understanding of the country -- growth there has slowed significantly in the last few years. Maybe he means relative to Canada's economy?

Timbits are the "holes" from the doughnuts. Nothing wasted

"We have already seen Canada's Chinese community embrace Tim Hortons and we now have the opportunity to bring the best of our Canadian brand to China with established partners who have expertise in the industry and the country," he added.

Tim Hortons is owned by Restaurant Brands, which also has Burger King and Popeyes in its portfolio. Interesting those latter brands are in Hong Kong, but not Tim Hortons. Or maybe Hongkongers would consider it too downmarket?

In any event, the fast-food market is getting crowded in China -- we just hope that Tim Hortons manages to find a foothold there and become just as ubiquitous as Starbucks.

How do you say "Timbits" and "double double" in Mandarin?

NY Commute a TurnStyle Experience

This way to shop and eat at TurnStyle in Columbus Circle

The subway system in New York is over 112 years old, and in serious need of a makeover if it had the money.

However, it's good to see some improvements made at Columbus Circle. One part of the station was empty for the longest time, and in March the space was revamped with US$14.5 million into a shopping/eating area with the clever name of TurnStyle.

A series of eateries and shops line the corridor

It's a funky area with coffee shops, boutiques, eateries selling take-out food from doughnuts to salads and sushi rolls, fresh juices and cute greeting cards.

The long narrow corridor is colourful and looks like a hit with the hipster crowd, and of course for those commuters looking for a bite to eat before or after work.

The vast majority of the shops are independents, with Starbucks thrown in for good measure, but it was not completely packed. The variety made wandering the area fun and inviting.

The space is colourful and fun to wander

Obviously the MTR Corporation in Hong Kong thought of this concept ages ago when it designed its stations 40 years ago, but it's good to see New York's Metropolitan Transportation Authority offering more than just a hot and dull commute.

Newsworthy Catch

Guo Zhenxi of CCTV is the current target of a corruption probe

China's graft busters are on a roll, this time targeting a senior executive with state broadcaster CCTV.

Guo Zhenxi, 49, China Central Television's financial news channel director, and is producer Tian Liwu, are suspected of accepting bribes and were taken into custody.

Apparently there was no advance warning Guo would be detained, which shows anti-corruption czar Wang Qishan playing his cards close to his chest.

Seems that Guo's career blossomed with CCTV, having joined this state media outlet in 1992 as a financial journalist and then crossing over to the business side to become deputy chief of advertising in 1998, according to Caixin.

Then between 2005 and 2009, he was both CCTV's advertising chief and head of its financial news channel, CCTV-2. He gave up the marketing role in 2009, but it is very unusual and not to mention unethical for someone in a news organization to hold those two positions at the same time. No wonder CCTV has lost its integrity...

Every year the state broadcaster holds auctions for advertisers to bid the highest price for prime time slots, particularly the Spring Festival Gala and other events when it is believed people tune into the TV.

In 2002, CCTV advertising slots raised 2.6 billion yuan but by 2009 it was a whopping 9.3 billion yuan. Last year it was 15.9 billion yuan.

Editorially, Guo was responsible for two popular shows. One was Chinese Annual Economic Figures, where top business leaders who appeared on the show gained a lot of exposure.

The other program was the consumer rights show 315 Gala, referring to Consumer Rights Day on March 15. The show sends reporters undercover to reveal irregular business practices. In recent years the targets have been foreign companies. Starbucks was the victim last year for allegedly overcharging customers in China more than anywhere else in the world.

The accusation was criticized by netizens who said the American coffee company had every right to charge whatever it wanted, and that there were other issues that deserved reporting instead.

Some academics are not surprised by Guo's detention. "With his powerful position within this powerful organization -- which enjoys a national television monopoly -- you can imagine how many people stand in line to bribe him," said Deng Yuwen, a former deputy editor for the Central Party School's Study Times.

"The content-providing departments should be separate from those overseeing commercial interests," added Zhang Zhian, a professor of journalism at Sun Yat-sen University.

We will be watching Guo's case with interest, to find out how much money he allegedly fleeced CCTV and how he managed to hold two positions at the same time. Perhaps this event will be the turnaround for CCTV's battered integrity?

Grinding the Wrong Way

A Xingbake or Starbucks on Qianmen Street in Beijing

Chinese state media are usually united on issues. They take the same stand suggested by the government and then go of on their own tangents, but they are basically taking the same line.

However, it is just as amusing when they start criticizing each other.

A few days ago China Central Television presented a scathing report on Starbucks, saying it had "hefty product prices" on the mainland compared to other international cities.

It said that the price of a 354ml cafe latte in Beijing cost 27 yuan ($4.43), higher than in London (24.25 yuan), Chicago (19.98 yuan) and Mumbai (14.60 yuan).

The program interviewed the chairman of the Coffee Association of Shanghai, who estimated that a tall cafe latte cost less than 5 yuan to make, and that Starbucks' 32 percent profit margin in the China/Asia Pacific region in the second quarter was higher than in other regions.

Reports like this fan the flames of economic nationalism, but not to the point of last year's torching of Japanese cars and trashing Japanese restaurants because of the Senkaku/Diaoyu Island dispute flared up again.

Nevertheless, the report on Starbucks follows criticism of Apple, with complaints about its warranties and customer service, and then Fonterra's baby milk powder being contaminated.

While all state media were on board with Apple and Fonterra, they didn't go along with CCTV on Starbucks.

Some internet users suggested CCTV go after state-owned enterprises that profit from practically having monopolies on the market, that not only sell expensive products but also have shoddy service.

People's Daily didn't seem impressed with CCTV's report. "Other than coffee, what else is more expensive in China than overseas?" it asked on its Sina Weibo account. It then answered its own question that listed such items houses, cars, medical expenses and education fees.

Seems CCTV will have to crawl back to its corner with its tail between its legs and wait for an Alpha dog to take the lead to avoid making the same mistake again.