Author Topic: What you need to get a Tim Horton's  (Read 1567 times)

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Offline BC_cheque

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Re: What you need to get a Tim Horton's
« Reply #225 on: April 06, 2018, 04:28:05 pm »
I wonder how fees work when the franchise is just a part of the business, for example a gas station with a Tim Horton's counter. Might be an interesting way to make more profit, Tim's to get the people in but only serve coffee/donuts and have my other snack counter to serve something more substantial (sandwiches, soup, etc.).

That's the idea behind all the post-offices in shoppers drug marts.  Apparently they don't make much money for it but the amount of people who go in to use the post office and end up impulse shopping makes up for it.

I'm not sure about Timmy's and gas stations (I think it's Esso only?), but I'm guessing it's similar.  Timmy's probably runs independently and is offered a discount rent (if any rent at all) and it's a win win for both. 

Timmy's keeps costs low, no bathrooms to wash; and the gas station has a product differentiation strategy.

ETA - in other words, for the gas station it's not about selling snacks, it's about getting customers to their gas station to buy gas instead of the one across the street.
« Last Edit: April 06, 2018, 04:30:54 pm by BC_cheque »