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Updated RecentlyTim Hortons vs Coffee Bean & Tea Leaf Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Coffee Bean & Tea Leaf including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $135,300 - $2,068,500 | $3,000,000 - $5,000,000 |
| Franchise Fee | $35,000 | N/A |
| Royalty Fee | 4.5% | - |
| Advertising Fee | 4% of Gross Sales | - |
| Year Founded | 1964 | 1963 |
| Year Franchised | 1965 | 1996 |
| Term Of Agreement | 10 years | - |
| Term Of Agreement | 10 years | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| 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. | Sophisticated developers with a proven track record of success, with the experience, capabilities, and resources to grow the brand. Prospective franchisees should have experience in: Multi-unit retail or restaurant operations Franchise operations Commercial real estate |
Financing Options |
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| In-House/3rd Party | In-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 |
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| 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 business | We have an integrated supply chain with worldwide distribution capabilities, owning the process from seed to cup. Exclusive and proprietary recipes for beverages, pastries, and cafe meals are created by our product development team who ensures each item is crafted to our premium standards. Our real estate and development team assists in store design, stores specifications and construction. Our support team includes a dedicated Franchise Business Manager for day-to-day operations and ongoing support, as well as franchise trainers and training centers in Los Angeles, Kuala Lumpur and Singapore. |
| Marketing | Ad slicks, Regional advertising | Our marketing team provides collateral, resources and guidance to increase brand visibility and help maintain the integrity of The Coffee Bean & Tea Leaf name while continuing to expand and strengthen the brand around the world. |
| 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) | - |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | - |
Company Overviews
About Tim Hortons
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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About Coffee Bean & Tea Leaf
Founded in 1963, The Coffee Bean & Tea Leaf is the oldest and largest privately-held chain of specialty coffee and tea stores in the United States. With a reputation for excellence, the company is known for its premium, handcrafted, flavorful beverages as well as product innovations including having developed The Original Ice Blended coffee beverage. Stores can be found worldwide in markets such as California, Arizona, Nevada, China, India, Korea, Singapore, Malaysia, Philippines, Indonesia, Israel, Egypt, UAE, Qatar, and Mexico - and continue to expand rapidly.
RETAIL Formats
Traditional Retail
Traditional street side locations and shopping malls represent the majority of The Coffee Bean & Tea Leaf cafes worldwide. Our retail design offers a modern, contemporary look coupled with a highly efficient back-of-house configuration. We have proven to be successful in locations big and small around the world.
Non-Traditional Retail
AIRPORTS
The Coffee Bean & Tea Leaf has over 40 airport locations around the world. We offer the traveler a premium specialty coffee and tea experience wherever they may be, and successfully operate both in-line and free-standing cafes in the airport and travel channels.
UNIVERSITY CAMPUSES
We have a growing number of locations on University Campuses. The Coffee Bean & Tea Leaf provides an environment for students and staff to work and socialize while enjoying our beverage and food offering.
MILITARY BASES
On Military Bases, We are proud to serve members of the United States military and their families.
STORE IN STORE
The Coffee Bean & Tea Leaf offers grocery shoppers Store in Store cafes and kiosks that provide our world class beverages as well as retail products available on grocery store shelves across the United States. For inquiries regarding wholesale distribution, please visit the For Business section of our website.
HOTELS & CASINOS