Tim Hortons vs Murphy's Deli Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Tim Hortons vs Murphy's Deli 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 | $175,200 - $827,500 |
Franchise Fee |
$35,000 | $25,000 |
Royalty Fee |
4.5% | 6% |
Advertising Fee |
4% of Gross Sales | - |
Year Founded |
1964 | 1993 |
Year Franchised |
1965 | 1996 |
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. | - |
Financing Options |
|
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 |
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 | - |
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) | - |
Expansion Plans |
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.
Tim Hortons is the # 1 Canadian franchise for 2020.
#44 on Franchise Rankings.com
About Murphy's Deli
The Murphy's Deli concept utilizes three core principles for continuous profitability and customer satisfaction.
First, our menu choices make each meal an adventure. We offer colossal, two-handed sandwiches along with guiltless, low-carb, low-fat options. For instance, our menu varies from muffalettas, deli classics, delicious salads and desserts to gourmet coffee and fresh juices. Second, we use a wide selection of breads, hand-sliced meats and cheeses to create any of our twenty three incredible sandwiches. Our ingenious combination of fresh, unique ingredients and condiments consistently causes our customers to remember yesterday's lunch with a smile when today's lunch break rolls around.
Third, we make each Murphy's Deli the ideal place for patrons to eat with friends or associates. Our goal is to create a fun, colorful, and warm atmosphere in order to enliven the day as well as relax the mind. We have designed each interior layout to function efficiently and successfully in many different types of environments while also reflecting an atmosphere of high standards.
Come join the Murphy's Deli team of food service professionals! We welcome motivated partners to share our success in franchising delicatessen restaurants in the most vibrant cities of North America. Our remarkable growth stems from each of the following factors: the dedication of our corporate staff and franchise owners, our exceptional menu, distinctive atmosphere, effective marketing, and thorough training and preparation of new franchisees.