Tim Hortons vs Deli Delicious Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Deli Delicious including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$135,300 - $2,068,500 | $122,250 - $467,850 |
Franchise Fee |
$35,000 | $25,000 - $30,000 |
Royalty Fee |
4.5% | 6% |
Advertising Fee |
4% of Gross Sales | 2% |
Year Founded |
1964 | 1996 |
Year Franchised |
1965 | 2008 |
Term Of Agreement |
10 years | - |
Term Of Agreement |
10 years | - |
Renewal Fee |
- | - |
Business Experience Requirements |
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. | No experience is required. Deli Delicious will provide all the training you need to successfully operate your own business. |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
No/No | -/Yes |
Start-up Costs |
No/No | -/Yes |
Equipment |
No/No | -/Yes |
Inventory |
No/No | -/Yes |
Receivables |
No/No | -/Yes |
Payroll |
No/No | -/Yes |
Training & Support |
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) | 14 days of classroom and hands-on training.
On-The-Job Training: 182 hours
Classroom Training: 35 hours
|
Support |
* The use of all Tim Hortons Manuals
* Support from head office personnel who have vast knowledge in the food service business | Ongoing assistance and guidance with policies, customer service, marketing, new menu recipes, advertising, and operational issues. You are never in business by yourself with Deli Delicious.
Purchasing Co-ops
Newsletter
Meetings/Conventions
Toll-Free Line
Grand Opening
Online Support
Security/Safety Procedures
Field Operations
|
Marketing |
Ad slicks, Regional advertising | Co-op Advertising
Ad Templates
Regional Advertising
Social media
SEO
Website development
Email marketing
Loyalty program/app
|
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) | About 60 percent of the franchisees are owner-operators.
About 40 percent are investors.
Number of Employees Required to Run: 12
|
Expansion Plans |
US Expansion |
Yes | 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.
Tim Hortons is the # 1 Canadian franchise for 2020.
#44 on Franchise Rankings.com
About Deli Delicious
Fresno's Deli Delicious sandwich shop has come a long way since opening its first shop at Bullard and Blackstone avenues in 1996.
*Great customer service and fresh ingredients.
*About 60 percent of the franchisees are owner-operators. And about 40 percent are investors.
*Has 47 subs on its menu from ham and salami to blue buffalo chicken. It also makes hamburgers, fries, salads and soups.
*Along with a big selection of subs, Deli Delicious offers an upscale, but relaxed deli experience.
*Deli Delicious continues to make improvements to its menu presentation and offerings, store design and the level of service it provides to its customers.
*Offering quality subs to sandwich lovers.
*Determined to keep this business growing through superior service and attention to detail.
Plans to move its franchises into nearby states following its effort to penetrate the greater Sacramento area. General plan calls for us to be the largest regional premium deli restaurant by the year 2019.
In developing plans for franchises,
Deli Delicious decided on two restaurant models. One is the express model and the other, the standard model.
*The express model is designed for serving food in smaller or non-traditional locations like hotels and airports. It can be as small as 450 square feet depending on location.
*The standard model is a larger shop spanning about 1,300 square feet and ideally suited for malls other popular retail locations.
*Deli Delicious offers help with site selection.
*Training is provided to bring the new franchise owner up to speed on how to run a Deli Delicious restaurant. It includes 14 days of classroom and hands-on training.
*Ongoing training and development seminars offered to our franchisees and their staffDeli Delicious is supported by a group of restaurant professionals, including sales, operations and training teams.
Franchise owners pay a franchise fee of $15,000 for the express model and $20,000 for the standard model.