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Fluffy Bunnies of DOOM • View topic - Tim Hortons

Fluffy Bunnies of DOOM

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 Post subject: Tim Hortons
PostPosted: Mon Sep 13, 2010 8:24 am 
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Playboy Bunny

Joined: Sun Sep 18, 2005 11:27 am
Posts: 4919
American's can stop reading now.

http://ca.finance.yahoo.com/personal-fi ... le-trouble

For all the Canadians in the crowd, this is a pretty interesting article about the ongoing internal Tim Horton's class action lawsuit.

TLDR version: Big fight is occuring in Timmies between franchisees who think the flash frozen donuts have cost them money and corporate which is making the extra profit by selling the donuts to the franchisees. But the hidden gem is all the other franchisees going "OMG, you can't have a public lawsuit. If people realize how much money we make selling donuts they'll boycott us." FWIW, the markup is about 250% which is extreme for a regular product but I wouldn't consider surprising for a donut/coffee chain.


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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 10:54 am 
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Ninja Bunny

Joined: Wed Jul 20, 2005 8:40 am
Posts: 602
Coffee, donuts, cupcakes and macroons are the biggest ever scam in the food industry and yes I'm totally jealous I didn't rape the market earlier. It actually costs more to wash a coffee cup than the cost of the coffee itself. At A&W we use to give coffee away for free to regulars if they brought in their own cup. The normal margins in the food industry on a whole really suck otherwise I probably do something I love instead of IT, but I know I'd starve to death (which is ironic!) working in that industry.

And I think 250% markup is pretty conservative. Sadly a lot of franchisees don't make nearly as much money as people think, the TM company makes the majority of the profit.


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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 11:34 am 
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Playboy Bunny

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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 11:50 am 
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Chocolate Bunny

Joined: Tue Mar 14, 2006 10:42 am
Posts: 2072
Location: Houston, TX
Why is everyone quoting gross margin and not net margin? Sure, the cost of the donut is pretty low, but the logistics/delivery/spoilage/labour are all pretty high.

This is a huge issue with airline food. Sure, the food sucks, but did you know that it costs $10 to get that crappy turkey sandwich on a plane even though said turkey sandwich is probably only $1 in food cost? The logistics of having a kitchen behind security with vetted labour, delivery infrastructure, rampant spoilage (imagine a weather day when 30% of flights are canceled), etc, results in pretty high total cost of having that turkey sandwich onboard.

So the reason airlines charge for food now is not to make a buck on that sandwich you just bought, but to reduce the amount of food being boarded and thus also reduce the infrastructure and support systems.

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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 12:02 pm 
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Chocolate Bunny
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Location: Washington, DC

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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 12:16 pm 
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Chocolate Bunny

Joined: Tue Mar 14, 2006 10:42 am
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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 12:19 pm 
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Ninja Bunny

Joined: Thu Oct 19, 2006 7:05 pm
Posts: 511
Location: Vancouver
I used to work at Starbucks, and the pastries were their highest markup item by far. Whenever things got tight, we were told to push the pastries.

(And yes, things got tight at my store. They opened my store because a subway station was being built there, but they opened it 3 years early so they had permanent construction in front of it and zero loyal customer base to rely on in the though times. We were the only money-losing store in Vancouver that I know of.)


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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 12:33 pm 
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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 12:38 pm 
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 Post subject: Re: Tim Hortons
PostPosted: Mon Sep 13, 2010 1:16 pm 
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