By the numbers: Tim Hortons franchisees and Ontario’s minimum wage hike

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Some Tim Hortons franchisees have responded to Ontario’s new minimum wage by clawing back employee benefits, sparking backlash from their parent company and Premier Kathleen Wynne, as well as some concerned consumers who are participating in a boycott of the coffee-and-doughnut chain.

Here’s a look at the numbers behind the controversial measures that have some of the franchisees and the parent company playing the blame game:

$2.40: The jump in minimum wage in Ontario for most employees starting Jan. 1. It is set to go up another $1 at the start of 2019.

$243,889.10: How much the increase will cost the average Tim Hortons franchisee, according to the Great White North Franchisee Association, a group representing about half of the country’s Tim Hortons franchisees.

The calculation assumes every employee’s hourly wage is boosted by $3.35, which includes the $2.40 minimum wage hike and factors in additional costs from other changes to the province’s employment and labour laws, like increased vacation pay.

This figure would vary depending on the mix of full- and part-time employees at a particular store, said a GWNFA spokeswoman in an email.

The association does not yet have a projection for what the average franchisee will lose a year when Ontario’s minimum wage rises to $15 an hour in 2019.

$6,968.26: How much more each full-time employee who works 40 hours a week will cost a Tim Hortons franchisee every year, according to the GWNFA.

10 cents: How much the parent company of Tim Hortons, Restaurant Brands International, raised the price of a cup of coffee by on average at its Canadian locations in 2014. At the time, it also boosted the price of breakfast sandwiches by a dime in all provinces except Ontario.

Since then, it has only raised the price of menu items infrequently. Most recently, on Aug. 2, 2017, some restaurants in select markets increased prices for some hot beverages and breakfast menu items, Tim Hortons said at the time.

The GWNFA said some of its franchisee members have been left with no alternative buy to implement cost-saving measures, like cutting some employee benefits, to survive as RBI has not helped them by raising menu prices or taking other measures.

Tim Hortons said it’s committed to helping franchisees work through the employment law changes.

10 cents is also how much a cup of coffee cost when the chain was founded in 1964. At the time, a doughnut also cost a dime.

$1.5 million: The required net worth of anyone applying to purchase a Tim Hortons franchise, according to the company’s website. Applicants must have an additional $500,000 in liquid assets to qualify.

4,613 restaurants: The number of Tim Hortons locations in Canada as of Dec. 31, 2016, according to the company’s most recent annual report. Only 29 of these were owned by the company, while 4,584 were franchised.

Follow @AleksSagan on Twitter.

Aleksandra Sagan, The Canadian Press

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80 COMMENTS

  1. A very well run restaurant should make a 10% profit, most don’t. Majority run around 7%. There isn’t a lot of room there and it is why restaurants are a here gone the next business. I can’t believe people can say they would invest 2 million and not expect a return. An owner breaks even making 100k/yr after 20yrs. So you want the owner to make less so the employees can have more? The owners shouldn’t be targeted but the franchise could be. Have the owner pay min wage and after a year the corporation has to increase your wage. So let’s say we have someone who has been at tims for 5yrs they make min wage +.50-1.00/yr they are there. Keeping costs down on the owner and hit the “fat cats” instead

  2. Folks, we’re getting all worked up over a few Tim Horton’s locations taken action against wynne’s gov’t increasing the minimum wage by 22.8 %. We’re giving this wynne gov’t undeserved ammunition to tear into all the small business operators by attacking a hand full of Tim Horton owners. Folks, this wynne gov’t doesn’t care about anyone except fooling enough voters to believe she actually cares for the little people. Folks, why does she wait until just before the election to do bring about this increase ?? wynne has been spending millions of your taxpayer dollars to do what ??? So she could fool enough voters to actually think she deserves another term. Seriously !!! wynee has destroyed this Province. We have so many people earning min.wage in this Province because all the good manufacturing/Ind. jobs have left this Province. Why ??? Because this Province is too expensive for small/med/large businesses to survive. And folks, if businesses can’t survive, we all lose. Yes, we all lose !!! Don’t let the smoke & mirrors of this wynne gov’t fool you. wynne is playing all of us like a fiddle and some of you are falling for it. Seriously ???

  3. Businesses historically whine that they can’t make it. Remember slavery days “we can’t make it without slaves” and child labor “we can’t survive without it” the lie that keeps on keeping on. It is very myopic to not understand that a well-paid employee keeps the economy going. Just look around Michigan all the small town businesses are going out of business because we don’t have the well-paid employees we once did. Time for businesses to step up and reduce the reward to their CEOs and pay real people

  4. Would not be surprised at all if those Timmies owners were looking to cut the benefits, breaks etc and just waited till now so they could blame the wage increase

  5. Tim’s has obviously been losing to McDonalds as far as coffee sales go around my neck of the woods. They got lazy and are losing profit no doubt. Why Canada has this coffee addiction in the first place should be questioned. Ya, I liked Tim’s coffee for a number of years. Not because it was the finest, but because it had a nice vibe. But Government decided to ban smoking and it has been downhill ever since. Especially for coffee shops. Let’s face it man, our rights have been all but stripped to the point where not even a having a good cup of Java feels good anymore. Maybe that’s because FUN has all but been outlawed in Canada. Or is it just me? Anyone else?

  6. In one Tim Hortons restaurant….How many are full time employees because they only hire part-time to avoid benefits payable

  7. And there is wynne using it to her governments full advantage to stay in power … nothing else matters. I still will never vote for the underhanded conniving bi&*^%h and the crooked liberals …

  8. it would be refreshing if most people doing the bashing actually realized the costs to run a business and employ staff. Most staff can’t even acknowledged any costs to the employer other than their hourly wage. It would also be refreshing if people quit buying products and services from businesses they claim to not like.

  9. Dee and Bruce …at the same time of the min wage increase the government has introduced a tax savings program for small business (mom and pop shops) to help offset the increase in salary costs. Leaving me to bring to light this …. Therefore; if Timmies falls into a small business category they would be entitled to that lower tax rate program just introduced. So the cry babies at the Tim franchises obviously rake in far greater profits than they’re trying to convince the public of. … just sayin

    • There is a big difference between profit and revenue. In most provinces the requirement to be a ‘small’ business is based on revenue, not profit. If the Nova Scotia government was to force a wage hike like that, half the small business here would be gone. Employers have to make EI and CPP contributions on behalf of employees along with vacation pay. I suspect you will see price increases in Ontario. I don’t think this is over yet. The question is, will the general public still be on board when the increase comes from them? I hope other provinces are watching closely.

  10. The employees should all quit and look for alternative jobs.This will allow the franchises go loose money.Now this will put some senses in their pocket.If they cut my break i will quit.People do what i suggested.

  11. The numbers don’t add up…

    First – 14.00 – 11.40 = 2.60
    Vacation pay increases are only for employees who have been full time for over 5 years. Those employees get an extra 2% vacation pay – which is – on $14.00 – 28 cents an hour.

    What percentage of Timmy’s employees last 5 years do you think? What percent are full time? Because I don’t know the norm but here in Toronto, it’s rare to encounter the same Timmy’s employee for much more than a month or two. So I suspect the number of employees to whom this applies is close to zero, but let’s be kind and assume 25% of Timmy’s employees hit that threshold. So an average of 7 cents per hour. CPP and EI and EHT on that increase is 8.93% – in all, another ~24 cents per hour.
    Making the increase $2.91. NOT $3.35!!! Which, multiplied by 40 and then by 52 = 6,052 – not the nearly 7K they claim.

    These assumptions are also based on the franchisee paying everyone the minimum wage today – many pay at least some of their employees more than the minimum – so the net increase is lower still.

    And here’s the real rub… in 1965 when Timmy’s charged 10 cents for a regular cup of coffee, the Ontario minimum wage of 0.95 / hour would have enabled employees to purchase 9.5 cups of coffee for an hour’s wages. At 11.40 their purchase power has decreased by 1/3 – to 6.42 cups of coffee – and at the new minimum wage, still only 7.8 cups of coffee. Since the minimum wage was $9.50 in 2008, Timmy’s has raised prices from 1.17 to 1.79: an increase of over 50%. Yet minimum wage has climbed – until January 1st, only 20%, and even with the new rate, now only 36% over the same time. So let’s call BS on the pooor franchisee! Who by the way…? paid 450,000 for their new franchise! So far Timmy’s has been making lots of profits off the hard work of workers getting a minimum wage that hasn’t increased by anything like the price of a cup of coffee.

    • I agree completely. The biggest problem is that the Franchisee Organization has decided to show what the cost would be given the potential maximum. The real facts are that the average cost to a franchisee is more like 38% of that figure. Just do the real numbers. Sounds like a great opportunity for the Canadian Labour movement to start a unionization campaign.

    • Keep in mind that the vacation pay that already exists compounds along with the increase; so any calculated increase needs to be multiplied by 1.04 or 1.06 depending on employee tenure.

      Let’s divide the figures provided by GWNFA though:
      Average cost per franchisee: $243,889.10
      Increased cost per full-time, 40 hour per week employee: $6968.26

      $243,889.10 / $6968.26 = 35

      So GWNFA is saying that each of these locations has 35 full-time employees and zero part-time employees. Despite the fact that it’s demonstrably not the case, let’s pretend for a moment that each of these locations is a 24-hour establishment that happens to be open 365.

      Each week has a total of 168 (24*7) hours.
      Based on their figures, the total number of employee hours worked in any given week comes out to 1400 hours.
      1400 (employee hours worked) / 168 (hours in a week) = 8.33…

      So, this alleges that, no matter the time of day, the average franchise will have around 8 and 1/3 employees in their store. That is obviously absolutely wilfully deceptive math. Anyone who has worked at a Tim Hortons can account for the fact that a store seldom has even close to that many staff in the store even during their busiest periods. What’s more, the bulk of their labour force consists of part-time employees and absolutely not full-time employees. So they have taken the average number of employees per store as well as the absolute maximum cost of an individual employee, and then loaded that cost into a year. There is not one Tim Hortons that will come anywhere near that level of loss. The fact that they are so comfortable lying to the public in such a blatant manner erodes even the slightest bit of sympathy I may have had for franchisees (which was already scant).

      • Great math Greg…!.. I’ve explained that exactly the same way… with the same math…. and people just don’t want to hear it. The GWNFA… is fear mongering and taking their issues and lawsuit with RBI and dumping it on the employees and the government. Classic spin…. and deflection.

    • Apparently this franchise pays 13 dollars per hour. Students will get a raise to 13.15 an hour ,which is a huge percentage of their staff. Employees 18 and over will receive a dollar raise . OHIO+ has been implemented so Employers will have reduced benefit rates ,since the Government now pays for prescriptions for employees 24 and under and the children of Employees. PLUS they will receive a 1% tax break from the Government to offset the wage hike. They forget to factor that in their calculations

    • I agree!!! Corporate greed…..sickening! Awesome post and replies very educational!
      Raising the minimum wage is good for everyone…some are just to backward to realize it…..Sad..

  12. Maybe I’m missing something here…

    Does the average Tim Hortons have 35 full time employee’s? Are all Tim Hortons 24 hours? If so, does the average shift have 8-9 people (accounting for all hours of the week)?

    Seems like a lot more people then I’d have ever seen at most Tims, back when I drank that swill.

    • They probably have 35 employees, but most of them are part-time employees (& not entitled to benefits)..so it is most likely not not. They are among most employers these days, who only hire part-time flexible employees so they don’t have to provide anything more than the required hourly rate, without the required benefits so long as they keep it under 25 hours (25 hrs?). It’s sad….as a lot of kids depend on these entry level jobs to make their way into the working world with their youthful enthusiam for their future prospects. Also sad, that the employers like this are sending this message to them.

  13. All fast food is too cheap and too available. It is cheap and available because it’s provided on the backs of the working poor. All fast food joints have the same business plan – maximize minimum wage labour. When this plays out those that reduce services will drop out, prices will rise maybe with a reduction of sales (unlikely) and those that can afford fast food will be required to dig a little deeper in the pocket. It’s a very small part of redistribution of the wealth. I agree that there are other means to achieve this including tax policy but these should be as well as not in lieu of.

  14. Tim Horton’s is not in the coffee and donut business and never has been They are in the real estate busness and this should be obvious to anybody who has any business experience. They plan to stay in the real estate business so get used to it. The blame for wages not keeping up with prices is a blatant lie. If one took that 10 cent coffee and 90 cent an hour wage from 1964 and expressed it in money like the silver value in the dimes at the time and now you would see prices and wages are indeed where they should be within about 50 cents or less The problem is the hidden tax created by govenment…called inflation by overpending, exactly what they want Tims to do. So Tims can stay in the real estate business or get back to basics coffee etc and the employees should work for a more enlightened employer like the Government of Canada

    • You are wrong … Tim Hortons is actually in the process of selling off all real estate holdings (offered first to the franchisees who operate the store and failing which to investors or interested buyers). To begin with they hold very few real estate holdings and typically negotiate longterm leases aligned with the timeline for the franchise agreement with the restaurant owner. Since RBI was formed through the tax inversion of BK and TH the business approach has been to increase ROE by deploying less capital, selling off any holdings (land, Corporate owned stores) to raise cash and cutting expenditures. Your comment is uneducated and simply an opinion not the actual business model of RBI.

  15. the employees at my local Tims are run off their feet, especially if it has a drive through as well. But after speaking to Tims management, they still cannot provide a coffee lid that does not leak all over my clothes lol and I know I dont have a hole in my lip

  16. Simple. What did you think was gonna happen? I’m sure other Chain restaurant owners will follow and Fine dining and bars ect ect. Did you think the restaurant would just absorb the difference?

  17. FUNNY, They fail to mention in this article how much extra revenue the $0.10 increase [that was implemented to offset the wage increase] has/will generate!!! Why, cause the greedy @#$%^ took that when it was implemented and stuck it right in their own pockets and are now crying poor. BoooHoooHooo!

    • That 10 cents is revenue and of the total revenue generated the Restaurant Owner takes home maybe 15% after expenses, royalties, advertising contributions etc. The average Tim Hortons can make around 2.5M in sales in a good location so for a price increase to differ ONLY 100K of the proposed increase of 140K you would have to raise ALL prices on the menu by 25% (100K if 15% GM assumed means revenue increases of 666K on sales of 2.5M means 25% increase). And lets not forget that the business owner still takes a 140K hit. Its not like these owners are making a million dollars. You are penalizing small business owners and transferring wealth from individuals who are not rich to begin with instead of changing tax policy to take from those who make millions…

      • Tim Hortons owners are not “small businesses.” Let’s consider your $2.5M in sales estimate. As per the company website, The ongoing costs per month are 10% of the gross sales. That leaves $2.25 M to pay staff, inventory and running the business.
        You are saying that they spend $1.9M to run the store all costs including tax. (approx $178500) and minus their 15% income $375,000. This leaves a total of $1346500, for operational costs. That number is ridiculous. If we average 7 employees working every hour of every day all making $14/hour that works out to $837312 in wages. That leaves $509188 to cover the rest of the over head. I order to eat that up,that would indicate a 25% (of income) cost to run the business. Does that seem reasonable or do those numbers seem too high?
        Under this model the business still makes a huge income and pays a more reasonable wage to their employees. How is such a salary not reasonable for the business? How much effort do they put forth to earn that $375000? Initially all they had was the money to start it. It’s rich people getting richer by exploiting the poorer people.
        P.S. If we use the same hours breakdown for the old minimum wage the difference is only $126000. No where near the $244k they estimate, unless they actually have 14 employees on everyday 24/7. Which I do believe is way too many.
        Look clearly, some one is not telling the whole truth.

  18. Blaming the government for something business has been reluctant to do, to do the right thing, is wrong. Businesses like Tim Horton’s have had several months to prepare and organize a plan to deal with this new reality. The part that infuriates the general public is clawing back from employees. Low, cheap and ill considered. As reported in the media, the Coburg couple (Children of the founders of the company) had sent the memo from their Winter Home in Florida. That action was akin to putting bad cream cheese icing inside the proverbial muffin. Crass act.

    • blaming a business who survives on VOLUNTARY customer interaction is wrong. The government uses force to achieve its goals, if we were really free then any business could pay what they wanted and customers would have more options. END GOVERNMENT RED TAPE NOW.

  19. It’s not only the cost of the increase of minimum rate that impacts the employer, but the extra amount that must be paid for the employer’s share of CPP and Employment Insurance, as these are paid as a percentage of the wage. Also increased vacation pay on higher wages. And the employees also are impactied in a negative way. Higher wages mean increased income taxes, both Federal and Provincial. And the Provincial Health Car tax imposed when Income Tax is filed. Make under $20,000 and there is no Health Care Tax payable. At $20,000, the Health Care Tax is $300, and it goes up from there. Not to mention the increase in all prices and more HST for the Government. So who really wins here? Everyone is grumbling about the ‘high profits ‘that Tim Hortons and others make and they should share. But is anything every done about the every-increasing exorbitant profits that the banks are making?

      • Absolutely – We should be talking about the exorbitant profits the banks make – and they DO NOT pay their employees that well.! ! Leave the little guy alone – concentrate on the really BIG guys- Banks – Walmart!! It’s disgusting how much the CEO’s make compared to their workers!!

    • It’s not about how hood the coffee is or isn’t. It’s not about service level or customer satisfaction. It’s not even about how it’s going to help employees bottom line. It IS about creating more taxes to cover poor government management, poor government business decidions and smoke and mirror deceit to try and solicit badly needed votes in the next election.

      If Tim Hortons or any other business big or small managed thier business in the same manner as the Ontario goverment and other goverments the door would be closed and charges filed. There is no legal accountability in government what so ever.

      • Haha…as if somebody – everybody – making $14/hour is going to pay enough taxes to fund “poor government management, poor government decisions”. On the other hand, why should any voter earning minimum wage vote for a party who refuses to raise that to somewhere near a living wage?

        Accountability in government is to the voters, and Ontario voters have lately soundly rejected alternatives to Liberal government, most recently when Hudak’s boneheaded hubris caused the PC party’s bid to fail miserably when failure didn’t even seem to be an option.

  20. McDonalds makes just as Good Coffee if not Better anyways. Plus Tim Hortins keeps putting up their Prices once they Suck PPL in with their addictive Cocaine Coffee๐Ÿค”๐Ÿ˜œ๐Ÿคฃ
    Sooooo it’s Like WTF ๐Ÿค”๐Ÿค”๐Ÿค” Honestly Tim Hortins is just a Seniors Hang Out like McDonald’s only McDonald’s coffee is better & Cheaper. Stick that up your Coffee Tim Hortins. Your always punishing staff for something ie… Treating dogs in cars with Tim bits finding out and then Firing the Staff for giving out a Tim bit to the customers Dogs๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜  Tim’s corporates Better think about going back to school and learning how to take care of their Staff and Customers Better. Your not the Cats Ass on the Block anymore with Starbucks & McDonald’s & even Robins Donuts doing better customer relations and Staff Promos . You MOFOs ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ ๐Ÿ˜ 

  21. I find it quite amusing. They never mention that students make up the bulk of Tim’s staff so they don’t make $14 an hour. That the dime hike in August was to offset the wage hike. I work part time in retail while I go to college and my work didn’t bat an eye at the increase. We didn’t even have a meeting about it. Those Tim’s franchises should be boycotted. A day or two of no sales would shut them up. Yes, they may take a minor hit, but shouldn’t we, as a people be supportive of bringing Canadians up, out of poverty instead of lining the riches pockets. The mentality in our country is moving further and further away from being Canadian and closer and closer to America. ME ME ME.

  22. These corporations have benefitted for decades on the backs of minimum wage workers. For 2 years, these same corporations spent millions trying to stop this minimum wage increase. I would love to hear from the Tim Horton’s or Loblaw’s or any of these multi-million/billion dollar corporations on what changes they made to better the lives of these workers during the 2 years prior to the minimum wage increase. Did they give the customary 5 cent raise to these workers after 1000 to 1500 hours and pat themselves on the back once again? Most of these corporations rely solely on part-time staff working 35 to 40 hours per week and students doing the same for even less. I can’t believe the insight coming from the previous comments! It’s like Donald Trump claiming to start from nothing…his daddy gave him a million to start…he’s filed bankruptcy 4 or 5 times…that’s not starting from nothing…working for minimum wage is starting from nothing!!!

  23. How about these numbers. In 1964 a cup of coffee was 10 cents but minimum wage was 90 cents an hour. That’s 9 times higher.

    At the end of 2017 a large cup of coffee was 1.98 and minimum wage was 11.60. Only 5.8 times higher.

    As far as I see it, even at $15 an hour the companies still owe these people more money.

  24. “The GWNFA said some of its franchisee members have been left with no alternative buy to implement cost-saving measures”

    buy = but?

  25. personally I have no problem with a $15.00 / hour minimum wage across the country and it should be federally mandated…. when a franchisee has to have a net worth of 1.5 million and another .5 million at hand then I dont think 15/hr is going to break them ….. a living wage helps the economy grow and allows those employees to pay rent buy groceries and even god forbid go to timmies and buy a coffee and a donut once in a while …. Seattle instituted 15/hr a few years ago much to the doom and gloomers dismay and protest and now Seattle has one of the best economies going and new restaurants and businesses opened ….

  26. Tim Hortens are mom and pop shops, they are franchises. Most of these restaurants are owned by families, and it is their retirement plan. There is huge overhead to run any kind of food/beverage business, between spoilage, employee waste, and flat out theft, it is very difficult to make a profit. The margins at these places is extremely tight. It also does not help that most towns & cities have very few restrictions on how many like businesses can be located in a general area. In most Canadian cities there is a Tim’s on every block. These people put up their hard earned money to get into these franchises, and most of the time have to work long hours to manage them, and keep from losing their shirts. They do not need anyone else sneaking a hand into their pockets.

    • Then they should accept the consequences that come with being an owner. No different than buying a house and complaining you have to spend money to fix things.

    • Mom and pop? You downplay the fact that just to be considered for a franchise you need to have 1.5 MILLION in net worth and $500,000 in readily available cash. The average net profit is over $300,000 per year and you call a wage increase for the working poor “another hand sneaking into their pockets” ??? “There is a Tim’s on every block” suggests that they ARE in fact very profitable and all the rich people want to own one.

    • @Ash. $867.11 per franchise. Wow they can all retire on that huge windfall, meanwhile the minimum wage increase will cost the average franchisee $243,889.10. Seems to me that would be a net loss of $243,021.99. Did you even bother reading the article before commenting?

  27. Dee A Thibert. It doesn’t matter how much you sell if you raise the costs of production and not the price of the product the bottom line goes down. So either they have to decrease the cost of production to offset the government legislated wage increase, or increase the price of the product. I think that most people want them to increase the price of the product, however that may result in selling less product and the bottom line will still fall short. By reducing the cost of production through reducing the employee benefits commensurate with the legislated wage increase, the bottom line stays the same. Do you have a family budget? The concepts are identical. And finally no, you cannot expect anyone to run a business that operates without a profit. I think what you are inferring is that the profit must be astronomical. It’s not. It is commensurate with the price of the franchise and the risk to the investor. And it was ever thus.

    • You forgot one option, profit less. Individual workers have been doing it for the last 40 years, isn’t it time that businesses take a turn? Why is it that shareholders must make a profit above all else? This is what is creating the great wage gap.

    • The company did lower production cost a few years ago by using frozen donuts. Please note this extra profit went right into the owners pockets.

  28. terrible article.
    -how much does each franchise save with the business tax decrease?
    -how much on average does each employee make in 14 days (minus the new requested contributions to benefits)? did the number of hours drop but the money taken in stay the same, thus costing the employer nothing?
    -are the employees being asked to work 8.5 hours and take 30 min off for free and still get their 2 required 15 min paid breaks? Or are they being told they work 8 hours and are being paid for 7.5?
    -leave blaming the government out of it. The minimum wage needs to go up 30 cents a year, period. they (every ontario government, period) leave/left it too long, let hundreds of thousands of people work for less than the poverty line / living wage, and let businesses get away with it. the extra money (if there is any extra because businesses are cutting hours and demanding the same loyalty from long term employees) earned will turn around and BE SPENT IN THE LOCAL ECONOMY. That student at the store in the mall who now has 50 bucks extra a month will spent it at the mall. every store in that mall will turn around, if they are smart, and offer incentives again to mall employees TO spend their paycheques at the mall. And not on booze. Or federal drugs come summer 2018.
    I visited a mall just after New Years day: of the 4 stores I visit regularly 2 laid staff off in knee-jerk reactions to the MW increase, and all 4 cut hours. Disgusting.

  29. So, what is the current average profit per franchise? The increase is an understanding that for too long corporations have underpaid workers and overpaid executives. I don’t feel any sympathy for the corporate fat cats.

  30. The numbers missing are what is earned by both franchiseeโ€™s and parent company.

    If you want to argue #โ€™s put them all out there!!

    By their suggestions each store now needs to sell a minimum of 2.4 million cups of coffee in order to remain profitable.

    • The net income of the franchises are needed in order to make an accurate analysis with dividends, management salaries and inter-company loans added back in to that figure.

  31. wynne’s liberals are playing the voters of this province like a fiddle. Everything wynne is doing has 1 and only 1 objective, no matter what the negative consequences will be for the people of this province. wynne wants you to re-consider and give her a second chance and vote for her and her liberals in June’s provincial election. wynne is spending, no wasting millions of taxpayers dollars to convince you that she should be voted back in. Seriously ??? But, sadly, quite a few potential voters will be fooled and be convinced that she is the better choice. Don’t be fooled folks.

  32. Obviously the GWNFA doesn’t understand their own figures. Sure, they offer the caveat that the figures for each location will vary depending on the mix of full- and part-time employees, but it will not cost each location $243,000.
    Yes, the Wynne government is trying to buy votes. Wynne ranting about Tim Horton’s is pure vote-buying posturing, not any sort of concern for workers. If any pressure needs to be applied, it’s on the government, not the coffee shops. Boycotting bthem will only see employees hours cut, or other abuses.

  33. Yes the wage increase should have been done in smaller increments. But the liberal government could have made an immediate impact by reducing the income taxes of the minimum wage earners. Taking home more of your actual current wage would have gone a very long way. This immediate increase in minimum wage hurts everyone with price increases to products that everyone needs on a daily basis such as milk and bread etc… This especially hurts seniors on pensions that didnโ€™t increase.

    • Hilarious. How much income tax do you think minimum wage earners pay? No, you don’t “get it”. They pay EI, which is (very poor) insurance against layoffs and CPP, which is deferred payment to themselves, and very little if any income tax unless they’re working way more than 40 hours a week.

    • The reality is these businesses pay less than 4% on the first $500k of income then 11.5% on the rest. This is lower than the 15% their employees pay to the Ontario Gov.
      The reality is we need a standard tax rate. Ex, everyone including businesses pay 10% of all income earned and gross income before deductions. After businesses pay the tax first the rest of the profits are theirs.

  34. Had they raised the minimum wage in smaller increments over say 3 or 4 years the impact would not have been so great, but as usual greedy Liberal politicians rushed the minimum wage increase to buy votes.

  35. I didnโ€™t care to read much of the article so if I sound stupid I do apologize. BUT, why,out of all the businesses, is Tim Hortons freaking out?? Have you ever tried to get s first of the day coffee? Or even through the day, not just an at a meal time kind of coffee?? They are PACKED!! So why are they soooooo worried about losing their shit or trying to cut their staffs crap?? They bring in half the towns pay cheque!!! The ones who should be coming concerned by this wage hike kicker are Mom and pop shops or businesses that JUST began last year or in maybe the passes thread year based that have more than 4 people on board for staffing!! Drives me nuts how bout g was g places like this who have been around for a long while are crusty over a wage hike when they have such a loyal purchasing fan base. Makes me shake my head.

    • These locations are franchises. They are privately owned. The franchise owner pays the employee, not Tim Hortons. The franchise owners are simply doing what they can to absorb the cost of the wage hike without cutting staff or hours. All small businesses are making cuts where they can ( Those that haven’t already gone out of business). The liberal media is jumping on this story because of who the owners of these two franchises are.

    • Dee as of now you are the ONLY one seeing it right. It IS the mom and pop shops that will be impacted the most, NOT the chain store, corporate OR franchisee. you ARE correct, you can RARELY go into a Tim Horton’s during their 4 main peak periods without waiting through a massive line up, and they keep a steady stream of customers flowing throughout the day. MOST of these Tim’s owners are WELL off and NOT hurting for anything and only see their employees as a punch card that makes them money.

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