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Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Scooter's Coffeehouse 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 | $389,942 - $860,654 |
Franchise Fee | $35,000 | $40,000 |
Royalty Fee | 4.5% | 6% |
Advertising Fee | 4% of Gross Sales | 2% |
Year Founded | 1964 | 1998 |
Year Franchised | 1965 | 2002 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | - | $5000 |
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. | - |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/Yes |
Payroll | No/No | No/Yes |
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) | On-The-Job Training: 160 hours Classroom Training: 46 hours Additional Training: At existing coffeehouse |
Support | * The use of all Tim Hortons Manuals * Support from head office personnel who have vast knowledge in the food service business | Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform |
Marketing | Ad slicks, Regional advertising | Co-op Advertising Ad Templates National Media 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) | Absentee Ownership Allowed Number of Employees Required to Run: 3 - 12 |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
In a vibrant market, differentiation is the key to success. At Scooter's we have developed a singular "premium" identity that sets our coffeehouses apart from the competitors and allows us to occupy a unique position in the industry. Scooter's dedication to the premium experience has created a difference that customers appreciate. Our coffee tastes different because it is different.
The premium experience begins with our coffee, but it doesn't end there. Our corporate philosophy dictates that everything the customers taste, see, hear and feel should reinforce the premium philosophy.
* Our coffee is served exclusively in Insulair's new triple-wall insulated cup, a unique solution recognized as one of the top innovations of 2005 by Inc. Magazine. Triple-wall cups are a quality alternative to polystyrene foam and non-insulated cups with paper sleeves.
* Our specialty drinks are created with Monin syrups, widely recognized as the world's premier flavoring. Unlike many popular flavorings, Monin syrups are made from natural fruits, nuts and spices, and contain no fat or cholesterol.
* Our mocha drinks are blended with Monin premium chocolate syrups, a rich and superior alternative to powdered flavorings.
* Our store locations are aesthetically designed to emphasize the premium experience. Equipment, art, furniture and accessories are carefully designed to reinforce the message that our customers receive the best.
This unique identity has turned Scooter's into the largest locally-owned coffee franchise in the Midwest.