HOME > OUR INVESTMENT STORY > A Unique Business Model

A Unique Business Model

Tim Hortons collects royalties, consistent with a highly franchised company. In addition, our business model includes controlling more than 80% of our full-serve system real estate through ownership or control of the head lease, and leveraging significant levels of vertical integration that exist in our system. This unique business model provides us with multiple quality, recurring streams of revenue.

The Tim Hortons business model is timetested and different from most quick service restaurant companies. This model has created a 49-year history of growth and performance.

Real Estate
Primary formula is rent based on % of gross sales

Typically 8.5% of gross sales

Franchising
Primary formula is royalty based on % of gross sales

Typically 4.5% of gross sales

Vertical Integration

5 distribution centres
2 coffee roasting facilities
Fondant and fills manufacturing facility