How to Start A Tim Hortons Franchise in India – Cost, Fee, & Profit

Have you ever thought about the potential growth in the cafe industry? Perhaps you have recently been to some foreign country (I mean, the US, UK, or Canada) and are planning to get started with an international coffeehouse.

Still running out of ideas? No worries! You may consider checking out our detailed analysis of the Tim Hortons franchise in India. Through our perfectly researched article, you’ll gain a crystal clear understanding of the following topics:

1. What’s the background of the Tim Hortons coffee chain and its presence in India?
2. How much would you require to partner with Timmie’s?
3. What’s the anticipated profit margin?
4. The necessary requirements, and no matter where you reside, how can you partner with them?
5. and definitely some key insights and much more.

• Initial Franchise Fee: Rs. 20 lacs – Rs. 40 lacs
• Floor area: 1500–10000 sq. ft.
• Royalty Fee: 4.5-6%
• Ad royalty Fee: 4%
• Profit Margin: 12–15%
• Net Worth: Rs. 12 Cr – Rs. 80 Cr
• Available Liquidity: Rs. 4 Cr – Rs. 32 Cr
• Total Initial Investment : Rs. 70 lacs – Rs. 17 Crore

Overview of Tim Hortons Franchise in India

Named after a Canadian hockey player, Tim Horton, who started off with its first coffee house in 1964 in Hamilton, Tim Hortons restaurants needs no introduction to any entrepreneur passionate about entering into the cafe industry.

Tim Hortons is also commonly known as Tim’s or Timmie’s, is well-known for serving freshly brewed coffee, donuts, cookies, burgers, and other fast-food items.

It is Canada’s largest quick-service restaurant chain, and with over 5,352 restaurants in 15 countries and more to add in the future, it would create an exceptional opportunity for interested applicants to join in the ever-growing profitable business.

With its strong foundation, accelerating growth, best-in-class marketing strategies, culinary innovation, and a range of affordable menu range, has helped Tim Hortons to acquire a significant market in Food and beverage industry. It also allowed the chain to offer consistently staggering growth for its investors and franchisee.

Tim Hortons Growth Prospects

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Tim Hortons: The Journey

The journey started by setting up its first outlet in Ontario to serve lip-smacking hamburgers and a range of fast-food items, and it has since grown into a chain of more than 5500 restaurant outlets and generated over US$3.34 billion in revenue (till 2021) generating chain is amazing.

Later in August 2014, Tim Hortons merged with Burger King for a US$11.4 billion purchase, and they became subsidiaries of the Canadian-American holding company Restaurant Brands International.

Key facts on Tim Hortons

Why Consider Owning a Tim Hortons Franchise?

1. The most loved restaurant brands in the world:
   • Over the years, the cafe industry in India has seen a significant jump in demand for pioneer coffeehouses, and with more than six decades of experience, Tim Hortons has garnered a tremendous customer base for its delicious menu.
2. Digital innovation and leadership:
   • Tim Hortons offers a world-class digital innovation team and leaders that allow the chain to innovate and provide unique menus every time you visit.
3. Global Expansion:
   • Through a franchise program, the franchise has already planned to expand its outlets across the globe in the future.
     • They currently have over 5,500 retail outlets in Canada, the United States, and other countries.
4. Strong Foundation:
   • Tim Hortons is one such chain that has a strong foundation and has always worked on its basics.
     • They have been upgrading their menus, building leading royalty programs constantly, and ultimately making the chain offer best-in-class food to its consumers.
5. Marketing growth opportunities:
   • Franchise owners will not have to worry about brand advertising and marketing. After owning a Tim Hortons outlet, the franchise handles marketing and other channel support.
6. Leverage an enormous customer base:
   • Tim Hortons has established itself as a trusted brand among its consumers by providing an authentic, delicious, yet affordable food range. At present, Timmie’s has the trust of more than a million loyal customers.

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How much does a Tim Hortons franchise cost in India?

Operating and managing an international brand is certainly not for everyone, and to spread its presence in India, Tim Hortons has partnered with AG Cafe, a leading master franchise, which owns the primary responsibility of opening multiple Tim Hortons restaurants in India.

According to the report published by Businessline, the chain aims to open nearly 120 outlets in the coming three years, taking the total store count to approximately 250 in the next 5–6 years.

The initial investment for opening a Tim Hortons restaurant franchise may range from ₹70 lakhs to ₹17 crores. Obviously, the highest investment range is for someone who is planning to open multiple outlets across the country.

Tim Hortons Franchise Fee

The franchise fee could vary depending on the model you choose, either a cafe or a dining model. For the prior model, you may need to pay a franchise fee of ₹20 lakhs, and for the latter, you’ll pay around ₹40 lakhs.

Additional Cost for Tim Hortons

The on-going royalty fee for the Tim Hortons chain is 4.5–6%, and the ad royalty fee is 1.5–4% of gross sales with an agreement period of 20 years.

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How much is Tim Hortons Franchise profit?

Tim Hortons is already an established brand that has become quite popular among its consumers for its variety of offerings and exceptional customer service. So, there is no doubt about its profitability.

Additionally, the chain has acquired significant market share in the cafe industry across the globe.

Having a renowned user base among Canada’s top food and beverage apps not only makes them a prominent face in the sector but also draws the attention of several entrepreneurs looking to venture into this particular sector.

With their ambitious debut in India in 2022, Tim Hortons inaugurated more than eight outlets in a year, showcasing their strong customer demand and robust expansion strategy.

For the coming few years, Tim Hortons may focus on building a strong retail presence in Tier 1 and Tier 2 cities by selecting the perfect location, marketing, and media promotions. As far as net profitability is concerned, Tim Hortons restaurants may anticipate earning a net profit margin of 5–12%.

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Requirements to Own a Tim Hortons Outlet

• You should be a passionate entrepreneur with extensive experience in managing international cafe chain.
• Additionally, you should be ready to invest at least ₹70 lakhs and be comfortable opening multiple locations in their area (if needed).
• Candidates should be a great TIM player and vision to grow along with their employees.
• Tim Hortons requires its franchise owner to have an ambitious approach to scale and develop the outlet at fast pace.
• The store size may vary and it should be minimum of 1500 square feet. Make sure you choose your location in high-traffic area.

How to Get Tim Hortons Franchise?

Once you meet the Tim Hortons chain requirements, then getting this restaurant joint is moderately tough and it certainly requires patience & good chunk of investment. However, to get a Tim Hortons outlet, interested prospect has to visit its official website and fill in the required details in franchise form.

To check out franchising opportunities – Canada & US and International.

The Editor’s thought

The demand for owning a Tim Hortons restaurant is growing at rapid pace and we have been receiving several franchise requests from NRI settled in Canada. But, that’s not all, the chain has also set out its plan to capture several top performing location in India.

At present, their prominent targets are Tier 1 and Tier 2 cities, which includes, Delhi, NCR, Pune, Mumbai, Hyderabad, Chennai, Bangalore, and more.

If you have keen interest in serving few delicious variety of coffees and food options in your neighborhood and possess the necessary capital then Tim Hortons can certainly be your go-to brand.

In case, you run out of option or cash, do check out our other food and beverages options.

Read more:

Tea & Café Franchise, Ice Cream Franchise, Food & Beverages, Delivery, Dealership/Distributorship, 

Affordable Franchises, International Franchises, Business Ideas, and Apparel Franchise

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