Ron Joyce, a former policeman who had operated a Dairy Queen franchise. It appeared to someone that can steer to franchise business to success, whereas it’s missing piece from Tim Hortons’s puzzle. The third Tim Hortons’ franchise was by Ron Joyce where he became from, although it was going to be a shaky relationship at the start. Soon Ron Joyce faced issues with paying royalties to Tim Donut Ltd., a company of franchisor-owned by Charade and Horton. Joyce believed that Tim Donut Ltd. has less support for the franchise, and he couldn’t look easily toward Tim Horton who had left to Toronto and was playing professional hockey in the United States. Joyce quit.
Tim Horton had to inject more money into Tim Donut Ltd. from his struggling to keep
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the chain alive. (Hunter, 2012). Tim Horton was asked Charade to leave in the end of 1965, and Tim Horton’s wife, Lori Horton, became his partner. Unfortunately, it doesn’t work out. Tim Horton decided to invite Ron Joyce return in 1966. Then, Joyce bought out Lori Horton’s stake in Tim Donut Ltd., for $12,000. Ron Joyce plans to develop and refined the franchise model from 1966 to 1974, and made it more vertically integrated.
This meant franchises purchased more and more supplies through the franchisor, Tim Donut Ltd. Thanks to the franchisor, because it gets volume discounts and rebates bulk purchases. In turn, franchisees needed to receive operations, marketing, and product support. All seems to be going smoothly, until 1974, when Tim Horton has a fatal car accident. While allegedly under the influence of amphetamines and alcohol are Tim Horton has been speeding. It is in discussing his late-night restaurant business and Ron Joyce. Following Horton's death, Joyce bought the Horton's share went to his widow, Lori Horton, for one million US …show more content…
dollars. Although Tim Horton is almost perfect in his lifetime, he was a happy child who is always in the lack of opportunities, of particular interest. After Horton's death, it seems appropriate to Ron Joyce and Lori Horton together oversee the creation of a children's summer camp DIS- unique. As this latter case, the operation of the camp supported by the franchisee. As a franchisor, from Tim Hortons sponsored 300,000 children who play minor hockey, calls "Timbits hockey" after the name of its popular Timbit donut hole. A major change of ownership occurred in 1995, when Tim Hortons merged Wendy's hamburger chain, partly out of friendship and Wendy's founder Dave Thomas and Ron Joyce between, and a part of Tim Horton’s way into the US market. (Hunter, 2012). According to Hunter (2012), early success for Tim Horton’s came from being a model of efficiency and effectiveness.
There is simplicity offered with a limited menu and its efficiency in purchasing, preparation, staffing, kitchen design, and food preparation. The innovation of drive-thru gave people the option of not getting out of their cars to grab a coffee and a snack. Tim Horton is also the first one to eliminate smoking in its restaurants early on, vanishing it from the coffee and donut competitors, especially in the modern crowd. The company grew exponentially, as its basic system that delivered attractive products was building on, along with friendly facility at low costs and prices. He also grew by controlling its supply chain and controlling its costs, pricing, product and process of consistency, and quality – a virtuous circle. Customers all over Canada were served with a growing number of solid franchisees. Tim Hortons had more than 4000 outlets by 2012, along with 99% of its North America outlet franchised (Tim Hortons Inc.,
2013). As mentioned that Tim Hortons is a leading publicly traded restaurant chain in Canada. It’s also the fourth-largest publicly traded restaurant chain in North America based on market capitalization.
There was a trend in rise of the net property & equipment related assets since 2002 to 2004. This boost in net property and equipment assets was related to the acquisition strategy conducted by Applebee’s. For the $34 millions acquisitions of 21 restaurants in Washington D.C. area on November 7, 2002; $24 millions has been allocated to the fair value of property and equipment plus $10 millions in goodwill. This has caused a jump in net property & equipment assets for 2002 to jumped 16% and Intangibles assets to jumped 12% when compared to 2001. Since most of the purchased are by cash, this has caused a 31% decreased in the Cash & Equivalents for Applebee’s balance sheet. For the 11 Applebee’s restaurants acquisitions in Illinois, Indianan, Kentucky, and Missouri for $21.8 million on March 24, 2003, $7.9 millions were allocated to the fair value of property and equipment, the other $16.6 millions went to goodwill, plus a net liabilities in additions of $1.3...
Wawa has a number of strengths that will allow them to be a successful part of the economy in Canada. Unlike competitors in the United States and around the world, Wawa has a wide range of products and services that go beyond the average convenient store. An average convenient store can be defined as “a store with extended opening hours and in a convenient location, stocking a limited range of household goods and groceries”. Not only does Wawa have extended opening hours (some being 24 hour) and convenient locations but their stock is not limited to household goods and groceries. Wawa has touch screen computers that allow the customer to choose from a large variety of fresh food including breakfast, hoagies and sandw...
A positive to expanding to Canada is that Canadian shoppers are similar to American shoppers, ideally making this a good target market for growth (Fiorletta, 2015). In an interview regarding expansion in Canada, CO-CEO Walter Rob said, “Our efforts in Canada are part of the effort to grow.” “We think the opportunity for fresh, healthy foods is larger now that it’s ever been”. “And we intend to grow as fast as we have ever grown — 40 new stores next year, 42-44 for the following year.” “That’s 10% square footage growth on top of 15 million square feet of retail we already have.” “People have said maybe we should stop our growth.” “I said, no, we are not going to do that because our strategy is working.” “There’s no reason to stop.” “There’s every reason to keep going.” (Vieira,
In the August 27th, 2014 article from The Globe and Mail, “Tim Hortons: How a brand became part of our National identity”, Joe Friesen observes that the intended merger of Tim Hortons with Burger King is not an ordinary business transaction, since Tim Hortons’ effective infiltration of the Canadian identity has made it an epitome of its culture and values.
Looking into a brief history of how the Tim Hortons franchise became what it is today, Tim Horton opened his first restaurant in 1964 in Hamilton Ontario. Tim Hortons had the focus to sell top quality, always fresh product with great value and service. This first store started off with only coffee and two types of doughnuts, Apple Fritter and Dutchie. In 1967, Tim Horton joined with Ron Joyce becoming full partners of the newly formed company. After Horton’s tragic death in 1974, his wife sold her husband’s share of the company which had now expanded into 30 restaurants, to co-owner Ron Joyce for one million dollars. She quickly regretted the decision and tried to overturn afterward, but was unsuccessful in doing so. As of today Ron Joyce has taken the small coffee and doughnut restaurant and transformed it into a multibillion dollar franchise, made up of 4304 ...
Target, a high-end discount department store, hoped to continue expanding and adding to the company’s 1,752 stores, by purchasing 200 Zellers stores, located in Canada. One of Target’s, longtime goals was to expand into Canada , and after a decade, the company took a jump across the border (Shaw, 2011). Because many thousand Canadians hold a Red Card, Target’s reward card, Target assumed this would be a successful expansion, increasing the amount of US brands that encompass Canada’s market. Target spent a year converting the Zeller stores, altering and renovating them to transform them into Target Canada, a subsidiary of Target (Shaw, 2011). They opened 124 stores in locations all over Canada, hiring back only one percent of the former Zellers employees, desiring to make a fresh start for the department store chain (Target Refused Zellers Workers).
TCBY has been a frozen treats product innovator from the day its first shop opened in Little Rock, Arkansas in 1981. The great-tasting, low-fat frozen yogurt concept received an enthusiastic response from an increasingly health-conscious public. Its trendy new product propelled the company to the forefront of franchising, and was the ‘first in a long line of ground-breaking menu items that anticipated consumer preferences and continually refreshed the TCBY concept’ (Conlin 2001, p. 133). But TCBY products are just one of the reasons that thousands of operators have concluded that a TCBY franchise is the preferred opportunity in branded frozen treats, and a dynamic partner in any co-branded concept. However, TCBY is facing a lot of problems, both internal and external, during the difficult period from the late 1980s to the early 1990s, especially the problem with its franchising system. The purpose of this report is to provide a comprehensive situation analysis of TCBY, with special reference to its franchising system, and identify several concerned issues of TCBY and its franchisees, and how these issues have negatively affected the relationship between them. Furthermore, this report also provides three recommendations in the attempt to diminish these concerned issues and better maintain the relationship between TCBY and its franchisees, and most importantly, help TCBY to increase the company’s performance and achieve their strategic goals in the next few years.
MARIST COLLEGE’S IMC EFFORTS The mission of Marist college is to help students develop the intellect, character and skills necessary to lead enlightened, ethical and productive lives in the twenty-first century. It is important that all forms of communication that originate from the institution must have a same look which will guarantee Marist a brand name. The overall IMC strategy of Marist college involves the development of an identity for the institution whose main objective is to enhance student learning.
From positive feedback of poutine, many menus have begun to create their own original gourmet varieties. Poutine joints like Smoke’s Poutinerie, is a familiar Canadian chain available nationally (except in PEI and the territories), offer creative combinations of poutine mixes for customer’s wants. The classic poutine is undeniably popular, but Smoke’s menu offers other toppings such as meat choices, salsa, guacamole, etc. and they even offer the Rainbow poutine with is a vegetarian option. It is clear that poutine has grown in variety and opened multiple, new locations around Canada as well as the States. With its popularity spreading worldwide, Canada’s identity will only flourish and advance in the
Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.
Demand for Panera franchising opportunities was very high, which allowed Panera to be picky about where and with whom they would do business. Panera determined where bakery-café locations could be. The franchisees bore the cost of opening new locations, and were required to obtain their ingredients from the home company. Expansion using the franchise model provided many upside benefits for Panera, while limiting the downside r...
When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turnaround. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment.
“Going forward, the company is well positioned for future growth, and Nigel and his team remain focused on driving franchisee profitability and delivering shareholder value” shares Lead Director Raul Alvar...
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand without having to pay such a large initial cost to open a new store since the franchise purchaser pays a cost to open the business. As well, the company can regulate many of the business activities so that there is a sense of consistency throughout all of the locations. The purchaser is allowed to use the trademarks and goods of the franchise which already have a large market presence. As well, they are provided with training and work standards by the company to help their business run smoothly (Kalnins & Lafontaine, 2004, p.761). Looking at the business model of the world’s largest food retailer, McDonald’s, provides great insight into franchising and business growth in general as well a better understanding of a global business that utilizes the franchising technique.