LAHORE: Last year in May, Business Recorder reported that Canadian chain Tim Hortons was planning to open in Pakistan.
“As we continue to grow Tim Hortons around the world: Tims is opening in Pakistan this year,” the company posted on its official LinkedIn account back in May.
The economic situation at the time was different—very different. The US dollar was worth Rs200 in the inter-bank market. Inflation was at 13.8%.
Fast forward less than 9 months later, and the rupee is now around the 270 mark. Inflation is now at 27.6%, and set to increase further.
None of this has stopped Pakistanis from queuing for hours to grab coffee and pastries from the Canadian chain - owned by Restaurant Brands International Inc (RBI), a Toronto-based company that also owns other fast food brands including Burger King and Popeyes - which opened its first outlet in the South Asian country this week just as its economic crisis took a turn for the worse.
Scores of Pakistanis have thronged to the cafe since it opened on Saturday at an upmarket Lahore shopping mall.
The development comes as fuel prices have also risen in less than a month by almost a fifth as the government implemented fiscal measures that are prerequisite to unlocking funds from an International Monetary Fund (IMF) bailout.
At the same time, the government only has enough foreign reserves to pay for just over three weeks of imports.
This phenomenon exposes the dark side of Pakistan’s economy— the divide between the different socioeconomic groups.
“Higher prices don’t really matter for the class of people coming here,” Ahmad Javed, a medical student who used to go to Tim Hortons while he was living in Canada, told Reuters as he queued up. “Rich people in Pakistan are getting richer, the poor are becoming poorer while the middle class is struggling.”
According to its online menu, a small brewed coffee costs 350 rupees ($1.30), while a large flavoured coffee is twice as much.
By comparison, the average government-mandated minimum wage is 25,000 rupees ($94) a month. With a population of more than 230 million and a $350-billion economy, Pakistan remains a growth market for fast-food companies.
Canadian restaurant giant Tim Hortons coming to Pakistan
McDonald’s, Retail Food Group-owned Gloria Jean’s Coffee and Yum Brands Inc -owned Pizza Hut are among the international brands with outlets in Pakistan. Tim Hortons is set to open another two outlets in Lahore, RBI said in a statement.
Pakistani firm Blue Foods operates the franchise. Both companies declined to give any details about the outlet’s sales in the opening week.
For students such as Pareeshay Khan, the brand’s social media traction trumps the cost of the coffee. “I’m here to taste the coffee that’s the top social media trend. I don’t know about the price, nor do I care.”
Meanwhile, Islamabad remains engaged in virtual talks with the IMF to unlock a bailout programme that was stalled last year in September.
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