Tim Hortons Burger King deal would be good for both – Franchise Industry expert Gary Prenevost
If you have been watching the news today, you might have heard that Tim Horton’s Inc. and Burger King have formed the world’s third largest fast food company after the Oakville, Ontario based coffee chain has agreed to a $12.5 billion merger with the US Company. The companies have a combined $23 billion in sales, and have 18 000 restaurants in 100 countries.
And it looks to be a win-win situation for both fast food giants. It gives Tim Horton’s an independent brand with the ability to move more quickly and efficiently bringing Tim Horton’s iconic Canadian brand to consumers on a global scale. Meanwhile, Canadians and other fans of the Tim Horton’s brand can be rest assured that the Timmy’s they have known and loved will still be the same following this historic transaction.
On the other hand, Burger King will likely benefit from some tax savings, but in the end those savings will likely not be as big as initially reported. This merger is about optimization for two brands who are both struggling with the same challenge – growth!