Tim Hortons Franchise Cost, Earnings, Review.

Tom Hortons Restaurants- it doesnt get more Canadian than that, although Tim Hortons is now also available in the USA. If a Canadian client calls us - Tim Hortons is usually the franchise they think they want to buy. When I ask people why Tim Hortons, I have yet to hear a good reason other than "Theres always a line up" Well guess what , you don't get paid for line ups. Today why Tim Hortons may not be as great of a franchise as many people think.
Taken from the Tim Hortons 2017 US FDD it will cost you $680,900 to $1,822,400 for a Standard Shop. Most shops cost around 1 million. Royalty 4.5% if you lease the building from Tim Hortons and 6% if not. Advertising fee will be 4%. Taken from their website you will need a minimum 1 million dollars net worth and $300,000 cash to be considered by the group.
We get a lot of investor groups and business people who have several other businesses calling and asking about Tim Hortons. The first thing I ask is do you intend on working your other businesses full time? If yes, you can't buy a Tom Hortons because they will only accept owners who who are willing to commit to them full time. They also look for prior management experience, solid business acumen and you will need a partner. I was once told a joke that is because Tim Hortons will run a single human being into the ground.
Tom Hortons was founded in 1964 by Canadian hockey player Tim Horton and partner and for many years Tim Hortons expanded to become one of the most Iconic Canadian brands. But as we always try and illustrate to people, every brand has a lifecycle, and unfortunately by the time these brands expand so big everyone wants one, the party is generally over.
Bet you didn't know that Burger King purchased Tim Hortons for $11.4 billion dollars in 2014 and they became a subsidiary of the Oakville based Restaurant Brands International. RBI is majority owned by a company from Brazil called 3G capital.
Now right when RBI took over many analysts, including us, knew this would not be pretty. Soon thereafter there was a Canadian Policy Alternatives study that suggested this company takeover is "likely to have overwhelmingly negative consequences for Canadians." The study analysed 3G Capital's past history of takeovers of Burger King, Heinz, and Anheuser-Busch and stated "it has a 30-year history of aggressive cost cutting, which could hurt Tim Hortons employees, small-businesspeople, Canadian taxpayers, and consumers. And we'll cover that in a minute but before we do let's back up a little.
Back about 10-15 years ago Tim Hortons switched from baking fresh in store, to having their goods parbaked, which is partly cooked, frozen then delivered. But Tim Hortons very slogan was "always fresh" and this is where many Die hards thought Timmies had turned to the dark side. IN 2008 there was a class action lawsuit over this switch to parbaking for "breach of contract, breach of duty of fair dealing, negligent misrepresentation, and unjust enrichment" and the lawsuit cited that franchisee's costs to produce a doughnut literally tripled from 6 cents to 18 cents per donut, required new equipment and other expensive investments. That case was eventually dismissed however needless to say franchisees were not happy now making 3 times less on donuts than they had prior to parbaking and having to buy the goods from corporate. Remember you can't step in the same river twice? That river of three times profit passed over a decade ago.
Since that time Tim Hortons and their franchisees have had a turbulent relationship. There is the 850 million dollar class action lawsuit where franchisees sued Tim Hortons for bullying and intimidation. The statement of claim read “Since the time of the corporate takeover of Tim Hortons, the relationship between Tim Hortons and its franchisees has become more adversarial than amicable,” on behalf of a franchisee group called the Great White North Franchisee association. Tim Hortons claims this organization is only a few negative owners, and has warned franchisees about spreading "misinformation" to analysts. The president of the GWNFA however suggests that over half of all Tim Hortons franchisees have joined the battle against corporate.
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[@almVancouver]

Yep, I live in Canada, Tim Hortons has taken a big beating in the public eye. Not nearly the reputation it once had.

[@johndefalque5061]

All the Tim Horton's franchises in the greater Victoria are owned by just 1 man. The open 24 hrs requirement makes no sense, causes soups to be held for twice as long as recommended.Parbaked can't compete with fresh-the freezer where food goes to die.

[@mathewdesbiens7888]

I am Canadian and have therefore have grown up on Tim Hortons. The brands quality has declined dramatically in the last few years.

[@richardpeters2034]

I am glad you care about us workers

[@TaranVH]

Woah woah wait. The government can increase the minimum wage, but Tim Hortons franchisees cannot increase their prices?? How is that legal? What kind of draconian contract did they have to sign?

[@FranchiseCityOnline]

Most food franchise contracts will have prices controlled in the contract, along withe 100% control on what goods they can sell. Its great for customers - for franchisees sometimes not so much! Thanks for the comment.

[@TaranVH]

Thanks for the response! I do not intend to ever own a franchise. KZbin just started recommending your videos, probably because I've shown an interest in finance-related stuff. But it is quite interesting to learn about these things. I'll be watching a few more of your videos.

[@sojohnny....8824]

Inflation my friend

[@realcanadianrailfan110]

All the franchisees did, to offset the raise in minimum wage was cut hours. My wife works at one. No more paid breaks, not even a 15 minute break, she paid almost $1200 last year for her small benefits and if they want, she might get 5 shifts this week, and 3 next week. Charging $1.35 for an .18 donut is still a decent profit margin.

[@FranchiseCityOnline]

Thanks for the comment!

[@krishxplor]

Tim Hurtings :) Great channel mate ! Keep it up

[@simonriddick]

I only go to Tims for the chili now. They took the bow ties out of the chicken noodle soup. They put cheddar on my ham and Swiss. They took away that awesome italian sandwich they had and the list goes on. In the morning they are slow as hell and I can't be waiting around so I go to Mcdonald's. I usually get a big breakfast and a coffee and that is sometimes ready super quick. Bacon egg muffin too are pretty quick. The service seems friendlier at McDonald's probably because things are run more efficient putting less stress on the workers. The one tims I go to they just throw the shit out the window at you lol. Another thing at McDonald's they hang the debit machine out to you so you can tap it quick which is perfect. So yeah no lineups and decent food and price and i'm there. Wendy's I stopped going to as well that was my girl for years lol. I did go the other day and it was decent there was a bit of flavor to the burger this time. Reason I went was the McDonald's in my city is packed with 10 car or more sometimes so I drove just a few blocks down and only 1 car at Wendy's lol.

[@divinee.155]

The problem with timmis is the food price has gone up so fast and the quality has gone down. The cookies were 25cents each now the are smaller nastier and now 1.25 the last time i check. The ice cap is barely coffee its some sort of syrup. I'm lactose intolerant and ice cap use to kill my stomach since the sale, i can now drink ice capp.

[@deandoxtator7137]

U get better coffee at McDonald's now. And since Tim Hortons does make their stuff fresh like their slogan says they left a bitter taste with all Canadians who love their fresh timmies. I remember going to Tim Hortons at lunch time at high school. Now I rarely go there now I am my late 30's. However they do lots for children too.

[@okdock8702]

The franchisees were not making 3x less on the doughnuts. The doughnuts were costing 3x more

[@realazduffman]

Glad I am not the only one caught that.

[@joesmith-zj7ec]

Can you do a video on why you should turn your buisiness into a franchise vrs why you shouldn't? Im starting something big next year and in 5 years will be ready to decide this.

[@FranchiseCityOnline]

Will do! Franchising of businesses is an additional service we intend to provide in the not too distant future so that will be a good tie-in. Thanks for the comment.

[@wclark3196]

Nope. Don't do it. There's a lot of acrimony between RBI and a good number of franchisees. Google the news for recent stories. Plus the way many franchisees reacted to minimum wage increases in Ontario (taking away paid breaks from staff and wanting them to pay for uniforms) lost the company a huge amount of good will. Edit: Ha! Commented too soon. VERY thorough coverage here. Great job.

[@mikes252]

The other issue is most Tim Hortons in Canada hire the most untrained kids or a lot of foreign workers who are willing to do minimum wage or less...basically the most unskilled and poorest customer service that the lowest wage will get them, many locations have been busted for having employees that are basically slaves, the owner also owns like an apartment building and gives the employees basically room and board and takes their whole paycheques in exchange

[@almVancouver]

Yeah, that was in the news not so long ago. I find newly arrived immigrants, or those that don't speak english very well are the mainstay for cheap labour force in the fast food industry.

[@80teg]

I think they are rolling back the number of approved work visas starting fall of 2018. Which they needed to, because in as much as earning dollars is a way out for a lot of people on visas, we need to ensure the financial stability of canadians first. ps- Those foreign workers are usually degree holders. Dont let the funny English fool you; they are on average considerably more educated than a born & raised Canadian adult working at Timmy's.

[@Waveman352]

I've watched a ton of this guys videos. Does he ever actually ever recommend buying a franchise of any kind or does he just hate them all?

[@FranchiseCityOnline]

kzbin.info/www/bejne/Z6rYn5Suj7CsfKc

[@josephlacerra8433]

Did not know what Tim Horton's was. Thanks for this informative video. It seems to me that if Dunkin Donuts can survive with its awful coffee, disgusting donuts, and dirty stores, then Tim Horto's will probably hang in as well. People seem to use these places due to force of habit.

[@FranchiseCityOnline]

Good point!

[@anombradoful]

Food is not very good, drinks are terrible, donuts taste like paper with sugar but i will fight you if you ask me to change -- It definitely is a force of habit.

[@BROutdoorz]

🤣 I’m calling them “Tim Hurtins” now..👍🏻🤣

[@patelsumit118]

Since the RBI took over good time is over at TIm Hortons. They have literally flooded the market with locations to fight with the competitions. I would not be surprised if they start selling burgers, subs, and hotdogs to stay in market.

[@MichaelEnglish88]

What a guy! This guy should be on Bloomberg or MSNBC! Excellent video. Great comments. Thanks a bunch!

[@FranchiseCityOnline]

Appreciate the feedback!

[@davidpinilla5150]

RBI ruined tim hortons... and I work there, first thing that has to change is the coffee, Ive had a lot of people complain, saying it doesn't taste good, or taste like dirty water or its bitter. Idk if this os true cause i don't drink coffee but from what people are telling me its gotten really bad.

[@gyice]

Tim Horton's days are numbered their new business model geared towards profit only and no customer loyalty or respect will put the final nail in their coffin.

[@DividendFiend]

*Local Tim Hortons has 1 star review* *Drive thru non stop full*

[@virtualmage0]

Use to love tim, but since all these change their coffee is terrible,food quality is subpar and price are up to the roof.

[@emmyjohnny970]

Can you review Wing Stop if you haven't already?

[@TommyTomTompkins]

Ok bet

[@rwr233b]

That and in their Marion Ohio store they Change time clocks so that people don’t get paid for all their hours. I know for a fact that the Tim Hortons in Marion Ohio has managers that would adjust to peoples pay Cox so that they weren’t getting any more hours then they rescheduled even if they were 10 or 20 more

[@VgManiac]

I love this channel.

[@hummingbir6]

*Tim Hurtins!* 😂

[@abhirajsingh2015]

How can i stary my own buziness in canada can u help me to start a new start up

[@jamesoconnor3562]

The one near my home in the US of A I like because, unlike it's competition, it has lots of people to wait on you, and you are quickly in and out of the place.

[@rethinker167]

Fun fact my mother was apart of the class action against tims

[@waterbottle4782]

Considering the franchises are now suing the parent company....

[@daw162]

A good lesson in risk - for those folks who live in an imaginary world where what they have today is what they think they'll have tomorrow (and those folks load up their debt accordingly).

[@Matt.Collins]

What do you charge to review a franchise ?

[@FranchiseCityOnline]

Zero! You can contact us at franchise.city to learn more.

[@annetteslife]

Par baking is nothing new, just about every restaurant does that. I have worked at various restaurant that use prepackaged food instead of fresh handmade food. So what Timmies is doing is nothing new. Same with not having paid breaks

[@FranchiseCityOnline]

Yes but there motto isnt "always Fresh!"

[@garfieldsmith332]

That long time motto of there always referred to the coffee. They used it long before they got into the "everything edible" type restaurant. They would say there coffee did not sit for more than 20 minutes before it was tossed out. Today they seem to be selling their products based upon how quickly they can get it to you. I still get coffee there but that is all. Thanks for posting. I really do like this channel and find it very informative. It is a must view for anyone who wants to open any kind of franchise.

[@BROutdoorz]

I’m fading away from Tim’s too...they are slow,the food is poor quality,and the cost has reached ridiculous 3 years ago..I stop for coffee there couple times a week..one more price increase and I’m done

[@FranchiseCityOnline]

Thanks for the comment!

[@olderguyrny]

Very informative video. Ditch the goatee!

[@FranchiseCityOnline]

Nope. But thanks for the comment!

[@zerohour7661]

I would once fight for Tim Hortons but now nope I hope they close down let this be a lesson for everyone don't sell out cuz you want more money

[@Bonsignore4U]

You need a professional microphone

[@desimonium]

This information is outdated. The current net worth requirement is $500,000 with unencumbered funds at $100,000.

[@AmanSS890]

Tim Hortons Store owner pockets $265,558 and more after Tax and interest. Net earnings $174,280 that’s after taxes and over head expenses A Tim Horton’s in Saskatchewan Profits almost $400,000 when people say Tim Horton’s has lost its tuch just look at the numbers even so people still go there. People have a habit built into them. They can’t stop going no matter how much they complain about them. Tim Horton is all about fast coffee and fast donuts that’s it love them or hate them Tim Horton’s will always make money.

[@shahzebahmed1990]

You are absolutely wrong. Tims is killing it

[@FranchiseCityOnline]

If by "killing it" you mean franchisees are earning less, then yes. kzbin.info/www/bejne/ppLSiGOsrrOtd7s

[@RebuttalRecords]

Tim Horton's is over-rated IMO.

[@ParissaKhoury]

Tim Hortons has the worst food menu and baked good out of any fast food chain

[@cdsand45s]

when did doughnuts get so complicated

[@W333dm4n]

Who's down to jump over the counter and grab the donuts tray

[@joewang2630]

Did this guy seriously say he thinks Tim Horton's Drive-through employees deserve at least $100/hr without flinching?

[@FranchiseCityOnline]

I had no idea anyone would take that literally. They work very hard and are not paid a lot is what I'm suggesting. Obviously the business model would fall apart if $100 wages were implemented.

[@davidpinilla5150]

drive thrus are not easy... have u ever worked one?

[@joewang2630]

Yeah sorry I should not have taken that literally lol you just looked into the camera and said it with such a serious face. Huge fan of the channel though. I have been considering buying a franchise for the last couple of years and I am glad I found your videos before I went through with it - you totally changed my perspective. When I have saved up enough starting capital, you can definitely expect a call from me!

[@FranchiseCityOnline]

Thanks for the kind words!

[@DamienMalakay]

Timmie's used to be great but once they sold it, it immediately went to shit!!!

[@fredfrond6148]

Tim Horton’s is the slowest of all the coffee shops. I have 1 Tim’s and one Starbucks right by my office. The Starbucks will clear a line up of 15 people in 5 min. Tim Horton’s 15 min.

[@davidpinilla5150]

Lol you're over exaggerating... most tims need an average drivethru window time of 25 seconds per car in the morning and its not that hard to do, even if you have 150 cars per hour which is normal

[@jamesoconnor3562]

Avoid brick and mortar. Up keep, and weather concerns, to much. Sell online with little overhead or inventory.

[@gaybama5957]

online has its limitations, a $3 product online requires $5 shipping while you can buy it for $3 in a b&m store.

[@noleftturnunstoned]

Tim Horton's food is disgusting and they are on the way out. I am Canadian.

[@MaximOfSurrey]

Same. Tim's is the lowest common denominator on coffee, their tea is awful, and their baked goods are like biting into a sugar coated shower sponge. What's really weird about the brand is that it somehow instills a kind of bizarre nationalistic fervor in people.

[@clemhfandango.]

That's what happens when capitalist leeches like 3G Capital takeover a functional and profitable business. These leeches only care about stealing as much money from franchisees as quickly as possible.

[@MrWatchmen759]

noleftturnunstoned what you crazy there better than Starbucks and have really good coffee and food with good prices

[@aryanaspasi4827]

@@clemhfandango. true

[@itrthho]

Tim Hurtins...trademark that name!

[@FranchiseCityOnline]

Lol!

[@HalfStarFilms]

How are you a "business owner" under these strict franchises? My independent contractors have a lot more rights and freedom by law then these so-called franchisee business owners. These franchisees are just managers who are the ones taking all the financial risks and taking the liability.

[@mikes252]

Ya Tim Hortons is Garbage, the food quality is horrible and all frozen garbage, if your an owner you are a slave to buying all product from them, you can't change prices so either you cut your profit margins to buy increasing cost product, or work employees on minimum wage or less that happens often....the only reason this franchise is so busy is because of Brand Loyalty but thats fading quickly especially in Canada. Maybe 10-12 years ago investing would have been worth it but not now

[@dabajabaza111]

Tim Hurtin's lmao

[@ROMSradio]

They have the best coffee hands down I can't stand starbucks. Over roasted stale beans and too much caffeine overpriced, etc. Tims is a difficult job to work at I did it in high school and will never work there again

[@qjackz]

Its really annoying that everyone associates Tim Hortons with Canada. It's a pathetic excuse for a coffee shop

[@MrBeard17]

what other country would it be associated too ... ?

[@qjackz]

@@MrBeard17 It should be associated with Canada, it's just embarrassing that the rest of the world thinks we like crap they serve.

[@kattzculo7739]

The place sucks!! Frozen food for $$$ Comon man !

[@tomcox5962]

Who in their right mind made the decision to put paper straws in ice caps now. First off, they soak up the drink and go soft. Second, they taste horribly bad. Congrats on losing another diehard customer!!!!!

[@Shay416]

Right. Like management okayed "coffee candy canes" and never think about just branding stainless steel straws... Like just focus on coffee because y'all are killing things for the fans

[@warburk]

Haha that's so funny my old bosses have two. They were a joke as employers

[@henkkhrr5306]

Yep capitalism at its best. Compared to when it was Canadian owned or owned by Wendy's SO many things have become seriously substandard at TH that they are too numerous to list. STOP GOING TO TH. That sends the message and is the only way these guys will get your attention if we all do that.

[@godson1of1]

Timmy ho’s is horrible

[@derick3482]

Tim Hortons is american LOL it's owned by your Burger KINGDOM