TORONTO – It’s become a long standing debate from those who choose their brew. For many Canadians, deciding whether to get your coffee from Starbucks or Tim Hortons is one that is virtually split down the middle, even though the Seattle based Starbucks owning 1,400 locations to the over 4,900 from its competitor.
Tim Hortons and Starbucks searches stay tight through google searches
One of the reasons that these companies are so close can be broken into how many locations. With nearly 3,500 more restaurants than it’s competitor, Tim Hortons isn’t something that many Canadians need to look for.
The locations within Canada may have something along with franchises against ownership. On a 20 year lease, you could own a Tim Hortons franchise for $35,000, given that you have $60,000 in liquid capital. Meanwhile, if you wish to own a Starbucks within Canada or the U.S, your mostly out of luck. Starbucks is a company that owns all its locations across Canada and the U.S.
“I always viewed franchising as a way to get access to capital, because you’re using other people’s money to grow, essentially. And we were dealing with a premium product — something that can be hard to learn, that you have to explain to the customer, that requires an educated staff.” Starbucks CEO Howard Schultz told Entrepreneur in 2003. “It would have been hard to provide the level of sensitivity to customers and knowledge of the product needed to create those Starbucks values if we franchised. You can be just as entrepreneurial and experimental in a company-owned model.”
And with that, this news comes as Starbucks plans to close 300 stores by March to restructure the brand within Canada. This includes new pickup and curbside locations across Canada. This consists of a 93-square meter location in the Financial District in Toronto. Revamped by COVID-19, these locations would rely heavily on customers ordering their brew before getting to the store and delivery options like Uber Eats and DoorDash.
Taking Reign on the West Coast
The numbers may favour Tim Hortons, but that doesn’t mean that it’s population is on par nationwide. On the west coast of Canada, Starbucks takes the cake over its Canadian rival.
Tim Hortons and Starbucks searches stay tight through google searches
Each year, the Seattle Coffee giant generates $300 million in sales in Canada. Meanwhile, though Tim Hortons sales were down in 2019, Restaurant Brands International sold over $6.7 billion. Given that the giant also owns Popeyes Chicken and Burger King, the brand has shown itself as a fast-food giant in the great white north.
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