Tim Hortons vs Van Houtte Franchise Comparison

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

Start-Up Costs and Fees
 
Tim Hortons Franchise
Van Houtte Franchise
Investment $135,300 - $2,068,500$250,000 - $300,000
Franchise Fee $35,000$27,500
Royalty Fee 4.5%5%
Advertising Fee 4% of Gross Sales-
Year Founded 19641919
Year Franchised 19651983
Term Of Agreement 10 years10 years
Term Of Agreement 10 years10 years
Renewal Fee --


Business Experience Requirements
 
Tim Hortons Franchise
Van Houtte 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.

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Financing Options
 
Tim Hortons Franchise
Van Houtte Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/NoNo/No
Start-up Costs No/NoNo/No
Equipment No/NoNo/No
Inventory No/NoNo/No
Receivables No/NoNo/No
Payroll No/NoNo/No

Training & Support
 
Tim Hortons Franchise
Van Houtte 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 businessMeetings, Grand opening, Field operations/evaluations, Purchasing cooperatives
Marketing Ad slicks, Regional advertisingCo-op advertising, 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)

 5% of all franchisees own more than one unit

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

Expansion Plans
 
Tim Hortons Franchise
Van Houtte Franchise
US Expansion Yes-
Canada Expansion NoNo
International Expansion YesYes

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 Van Houtte

Albert-Louis Van Houtte, a French immigrant, set up his first grocery store in Montreal in 1919. Van Houtte stocked the store with specialty products from Europe, including coffee. Each day he would roast small batches of coffee in the back of his shop, and soon Van Houtte had built up a reputation in Montreal for selling quality coffee. In the more than 80 years since its founder began roasting European coffees, A.L. Van Houtte Cafe-Bistro has grown beyond Montreal and has expanded its menu. Today, each cafe-bistro serves a variety of coffee and espresso drinks, as well as teas, soups and sandwiches.