As Tim Hortons draws crowds in Lahore, economist says cannot compare economy with purchasing power

People stand in a queue outside Tim Hortons Cafe and Bake Shop in Lahore on February 18, 2023. (AN Photo)
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Updated 19 February 2023
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As Tim Hortons draws crowds in Lahore, economist says cannot compare economy with purchasing power

  • Tim Hortons witnessed record-breaking sales on the opening day of its outlet in Lahore on February 11, says head of operations
  • Economist says despite social media criticism, the move brings foreign direct investment to the South Asian country

LAHORE: As Tim Hortons, an international coffeehouse, continues to draw large crowds in Pakistan’s culinary hub of Lahore, an economist says one cannot draw comparisons between the economy and people’s purchasing power because “it is always a question of macroeconomics.”

On February 11, Pakistan opened its doors to Canadian multinational coffeehouse and restaurant chain Tim Hortons, which made the highest single-day sales for any outlet of the global franchise in the world.

“We made a global record. We reached up to the highest number in 61 years [in the history of Tim Hortons]. The international team was also here. They were tracking the transactions and everything,” Adnan Bhatti, head of operations at Tim Hortons Lahore, told Arab News on Saturday.

Bhatti didn’t reveal the exact number due to international restrictions. However, he said the outlet opened at 7:30am on the opening day and closed around 11pm. Even then, Bhatti said, people were standing inside but Tim Hortons had to pull the shutters down due to government restrictions.

“We dealt with over 13,000 guests on the opening day. The queues you saw outside the outlet were totally fair. Even now, as we talk, 60-65 people are standing in the queue,” added Bhatti.

Pictures of coffee enthusiasts forming long queues outside the restaurant have since gone viral on the Internet, with netizens pointing out how the sight was in stark contrast with the current economic meltdown in the country, with inflation going through the roof, local currency depreciating by the day, and the foreign exchange reserves falling to critically low levels.

But Pakistani Neuro-Economist Dr. Abdul Jabbar Khan said the opening of Tim Hortons was a “positive” development, while the customers shared the public was “richer” than the government and “curious” to try a cup of the much-hyped beverage because of its international appeal.

“[The opening of the outlet in Pakistan shows we are getting] foreign direct investment through locals, through Pakistanis, or through overseas investors. It’s a positive sign and I appreciate it,” Khan told Arab News on Saturday.

“We cannot just [draw] comparisons of poverty or the economic proposition in Pakistan [with people’s purchasing power]. It is always a question of macroeconomics. People of Lahore are a different proposition altogether across Pakistan. They love food, they love eateries.” 

The economist said the need of the hour in Pakistan is to control the government expenditures, which the authorities have only attempted “in theory.”

While inflation was not a choice, treating oneself to a cup of coffee certainly was, Mahnoor Shakir, 36, told Arab News, standing in a queue outside Tim Hortons in Lahore.

“I don’t find anything wrong with spending Rs400-Rs500 ($1.92) on myself. Especially, when you are getting something of international standard and quality, from an international chain instead of something over-priced that too is local,” she said.

“International chains coming to Pakistan and sustaining will only help grow our economy, our business stream.”

Aside from a variety of coffee, the newly opened outlet in Pakistan is also serving sandwiches, donuts and baked items.

Customers say the prices of coffee are pretty reasonable and are even less when compared with other known coffee houses in the city.

“It’s priced accordingly so that it is affordable for everyone,” 20-year-old Hadi Ali, who was waiting to get donuts for his mother, told Arab News.

“My mother likes the brand; she has tried it abroad. They [the public] see it’s an international brand so everyone has come out to try it. If it would have been a local brand, there wouldn’t be long queues like this.”

Asad Sheikh, chief operating officer of Lahore’s online food community ‘Foodies ‘R Us,’ said they didn’t expect the turnout to be this huge.

“It’s the number of transactions in one [opening] day which have broken the world record,” he said. “It’s been eight days since the launch, but the queue is as long as it was on the opening day.”

Mohammad Akmal, 60, who came to Lahore from London for a few days, was also standing in the queue with his son to taste the coffee.

“The quality is good. It’s an international brand. My children like it. People are curious, they haven’t tried it or been abroad ever. For them, it’s the brand,” Akmal said.

Noman Naseer, 48, said the people in Pakistan are richer than the government.

“People are enjoying the new brand launched in Pakistan. People are coming and standing in long queues for just a coffee, fries, etc. It’s Pakistan’s culture that if someone is going somewhere, others follow suit whether they like it or not,” he said.

“You will mostly spot people from the upper class [here]. It can be for everyone, but I don’t think so, considering the rising inflation in the country.” 

Tim Hortons is expected to open 80 outlets in Pakistan over the next 10 years, according to Sheikh, who said two more branches of the coffeehouse are ready to be opened in Lahore’s Gulberg alone. This will be followed by one in Islamabad and another in Karachi, he added.

Sheikh also believed that the opening of Tim Hortons would benefit the economy.

“The economy works when the money is circulating. This is the circulation of money,” he said. “It’s providing employment and work opportunities to various vendors.”


Fifth-generation diamantaire Ali Khalil believes ‘Arab heritage gives the brand its soul’

Updated 59 min 8 sec ago
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Fifth-generation diamantaire Ali Khalil believes ‘Arab heritage gives the brand its soul’

  • Khalil following in footsteps of his great-grandfather
  • Jewelry preserves Lebanon roots, he tells Arab News

DUBAI: Born into a family of diamond dealers, Ali Khalil left a decade-long career in London’s financial world to follow what he believes is his true calling, to create timeless jewelry through his brand Levuma.

Founded by Khalil in 2016, the jewelry house has a long tradition in the diamond industry, beginning with his great-grandfather. In the 1930s, Khalil’s great-grandfather began trading rough diamonds in Sierra Leone.

Fast forward to 2016 and Khalil decided to name his brand after Levuma, a remote village in the southeastern part of Sierra Leone and the site of the family’s first plot of land dedicated to mining diamonds.

The fifth-generation diamantaire says he has preserved his Arab identity throughout the years, something that is mirrored in the luxury brand’s ethos. (Supplied)

And the brand has no shortage of glittering fans — in September, pop star Mariah Carey appeared at the MTV Video Music Awards in a $10 million diamond set by the company.

“Seeing Mariah Carey wear one of my pieces was an ‘I made it’ moment. I never imagined that as a kid growing up in Antwerp. But every milestone just pushes me to go further,” Khalil told Arab News recently in Dubai.

Khalil is keen to raise awareness about the label in key destinations around the world, from Los Angeles to Riyadh.

“We already have very long-standing friendships and loyal clients across the Kingdom, and our goal is to deepen and expand those relationships even further,” said Khalil, who showcased his newest collection in Saudi Arabia earlier this month.

The fifth-generation diamantaire says he has preserved his Arab identity throughout the years, something that is mirrored in the luxury brand’s ethos. (Supplied)

“Our plans include strengthening our private client presence with more frequent visits and exclusive presentations (and) introducing new high jewelry creations tailored for Saudi collectors,” Khalil added.

“Saudis value exclusivity, authenticity, and personal connection, they don’t just buy a piece, they connect with its story,” he said.

The fifth-generation diamantaire says he has preserved his Arab identity throughout the years, something that is mirrored in the luxury brand’s ethos.

“Although I was born in Belgium, my family’s roots trace back to Lebanon more than a century ago. We later spent several generations in Africa and London before eventually building our base in Belgium in the 70s.

“Throughout this journey, we always preserved a strong Arab identity, a culture that values beauty, generosity, and legacy.

The fifth-generation diamantaire says he has preserved his Arab identity throughout the years, something that is mirrored in the luxury brand’s ethos. (Supplied)

“Jewellery in the Arab world has deep emotional meaning. It celebrates family, personal milestones, and the stories we choose to remember … our Arab heritage gives the brand its soul.”

Designed to be heirlooms, each creation embodies Khalil’s vision of quiet luxury and sophistication.

“For me, beauty lies in simplicity. The diamond is nature’s most perfect material, my role is to enhance its beauty, not overpower it,” he said.

The fifth-generation diamantaire says he has preserved his Arab identity throughout the years, something that is mirrored in the luxury brand’s ethos. (Supplied)