Tim Hortons vs The Coffee Club Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs The Coffee Club including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Tim Hortons Franchise
The Coffee Club Franchise
Investment $135,300 - $2,068,500$450,000 - And Up
Franchise Fee $35,000N/A
Royalty Fee 4.5%6%
Advertising Fee 4% of Gross Sales3%
Year Founded 19641989
Year Franchised 19651994
Term Of Agreement 10 years-
Term Of Agreement 10 years-
Renewal Fee --


Business Experience Requirements
 
Tim Hortons Franchise
The Coffee Club Franchise
Experience

*An entrepreneurial drive and ability to build a high performing team. *Prior management experience. Experience in food service and/or restaurant operations is a plus. *A lifestyle that allows for the time commitment required to launch and build a franchise restaurant. *Net worth of $500,000 and liquidity in the amount of $300,000 (The full investment from a Tim Hortons could be over $1,600,000) *A personal passion and commitment to the development of the Tim Hortons brand. *Ability to exemplify and execute the Tim Hortons principles and standards of operation on a daily basis. *Understand the importance of being a community partner that is proud to represent Tim Hortons.

Good ethics in business and positive business acumen are the only tools required for what The Coffee Club believes to be a recipe for success; that, and a commitment to excellence, a thirst for knowledge and a passion for people.

Financing Options
 
Tim Hortons Franchise
The Coffee Club Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/No-/-
Start-up Costs No/No-/-
Equipment No/No-/-
Inventory No/No-/-
Receivables No/No-/-
Payroll No/No-/-

Training & Support
 
Tim Hortons Franchise
The Coffee Club Franchise
Training New franchisees undergo an intensive seven week training program at the Tim Hortons University, located next to the Oakville, Ontario, head office. The facility includes classrooms and a fully operational Restaurant, providing trainees with intensive hands-on experience in the preparation of all Tim Hortons products. Strong emphasis is placed on food handling and hygiene procedures, Team Member relations, equipment maintenance and in-Restaurant security systems. * Seven (7) week training program in the Oakville, Ontario, at Tim Hortons University * A Restaurant opening crew/Manager of Operations Standards (MOS) to assist the opening of the Tim Hortons Restaurant (for a maximum period of two weeks)-
Support * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service businessThe six building blocks of Mission, People, Marketing, Operations, Property and Financial Management are all supported by manuals, training and support departments to tap into, to ensure our daily operation is supported and provided with the tools to succeed.
Marketing Ad slicks, Regional advertising-
Operations 58% of all franchisees own more than one unit

Number of employees needed to run franchised unit: 25 - 30

Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

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Expansion Plans
 
Tim Hortons Franchise
The Coffee Club Franchise
US Expansion Yes-
Canada Expansion No-
International Expansion Yes-

Company Overviews

About Tim Hortons

Tim Hortons is one of North America's largest developers and franchisors of quick service restaurants and one of the largest publically traded restaurant chains in North America based on market capitalization. Founded in 1964 in Hamilton, Ontario, Canada, Tim Hortons is one of the fastest growing coffee and bakery franchises in America and an industry leader in same stores sales with more than 4,000 restaurants worldwide (as of April 1, 2013). Today, our U.S. restaurants are primarily located in New York, Michigan, Ohio, Indiana, Pennsylvania, West Virginia and Maine. We have plans to grow our franchise opportunities throughout the U.S. in the coming years. We are far beyond coffee and donuts.Tim Hortons Cafe & Bake Shops is proud to serve "Always Fresh Premium Coffee," the coffee that has made us famous, as well as our always fresh baked goods, home-style soups, fresh sandwiches and wraps, hot breakfast sandwiches and specialty teas. We offer a variety of menu items that entice guests to visit our restaurants during all day parts including breakfast, lunch, dinner and the fastest growing category is the QSR category, late night snacking. From full-service restaurant franchises, to custom-built kiosks and a wide range of non-traditional venues, we build our restaurants to fit anywhere while maintaining the exceptional quality, freshness, convenience customers expect. Tim Hortons Cafe & Bake Shops have become a daily ritual in the lives of our guests through the quality and value of our products. This brand loyalty has been earned in partnership with franchisees, which we call our restaurant owners, by delivering superior products and services to our guests and communities through leadership, innovation and partnerships.

The total investment necessary to begin operation of a Tim Hortons franchise under a Franchise Agreement (excluding real property) ranges from $298,650 to $1,394,000 for a Non-Standard Shop/Kiosk, and from $1,009,000 to $2,068,500 for a Standard Shop. This includes $103,100 to $496,400 for a Non-Standard Shop/Kiosk and $389,600 to $511,400 for a Standard Shop that must be paid to the franchisor or an affiliate.
The total investment necessary to begin operation of a Co-Branded Restaurant franchise under a Franchise Agreement (excluding real property) ranges from $695,500 to $1,837,400 for a newly-built Co-Branded Restaurant and from $135,300 to $219,600 for a Tim Hortons restaurant that is renovated to become a Co-Branded Restaurant. This includes $466,000 to $686,500 for a newly-built Co-Branded Restaurant and $5,500 to $177,600 for a Tim Hortons restaurant that is renovated to become a Co-Branded Restaurant that must be paid to the franchisor or an affiliate.
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Tim Hortons is the # 1 Canadian franchise for 2020.


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About The Coffee Club

The Coffee Club 'Cafe Bar Restaurant' These licensed restaurants specialise in offering customers what they want on request. There's waiter service - attentive yet unobtrusive - and a wide choice of breakfast, lunch and dinner meals available morning, noon or night. This style of The Coffee Club requires a commitment to restaurant-style customer service, longer opening hours and a dedication to providing additional options to the standard menu. We call these 'Chef's Choices'. Requires an initial capital investment of more than $500,000The Coffee Club 'Club' offers a range of light meals, gourmet sandwiches, coffees, beverages, cakes and counter service. At the centre is our dedication to serving excellent coffee. Clubs typically exist on strip locations or within a shopping centre or high-pedestrian areas. You will find that The Coffee Club system boasts more 'Clubs' than any other style of store available. Requires an initial capital investment of approximately $500,000 Generally the smallest option in The Coffee Club portfolio, Kiosk's are predominately seen in shopping centres with a focus on light meals, gourmet sandwiches, coffee, beverages, cakes and counter service. A kiosk location requires an initial capital investment of approximately $450,000