Tim Hortons Is Preparing To Be Bought By Burger King
Yes, i'll have the double double Whopper please.
Photo cred - Brendan Mcdermid
Whoppers and timbits may become one, at least in a corporate-administrative sense, as Burger King plans to buy out Tim Hortons and create a new mega-resto entity. The food service-fusion was announced and all but confirmed by WSJ, as both Tims and BK are in agreement and are now in talks to create a new Canadian-based company.
Tim Hortons has a past of being bought out by American burger chains, like with Wendy's in 1995. Combined, Tims and BK will have a shared worth of around $18 billion dollars, and would become the 3rd largest fast food company in the entire world.
Burger King isn't buying out Tims simply for the money or prestige though, as the deal is reportedly a "tax inversion scheme," a slick corporate move many American companies are enacting to pay less on taxes. Basically, with BK coming to Canada and joining with Tims, the company will enjoy a lower federal & provincial corporate tax rate, 26.5% (Ontario) vs. 35% (USA), according to Forbes.
Tims, Canada's renowned coffee chain-giant, will also give BK an edge in the caffeine scene. McD's has upset the coffee-market with their Mcafes, so BK is probably looking for a way to get in on the game. Combo BK-TH restos would create solid competition with McD's Mcafes, without the hassle of rebranding or creating a new BK-coffee concept.
Hopefully more than just side-by-side restos will be the result of the corporate merger, and menu items cross over between the two fast food joints. A donut-bun whopper would be a magical creation, and would make the American takeover of Canada's favourite coffee spot a little easier to deal with.
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