We will call that a Wynne Win.

Did nobody at the Tim Horton’s head office know about the change in minimum wage for Ontario scheduled for the first of January? Did all those franchisees fail to tell them? And would you not wonder about a major franchiser who dominates the product line in Ontario, not being in control of the situation?

Somebody should send a note to the new owners of the Tim Horton’s brand that they blew it. Did they not realize that a rise in the Ontario minimum wage would have an impact on their franchisers? We will assume that not all employees are still earning minimum wage but obviously there will be some franchises trying to maximize their profit at the expense of their employees.

But there is little percentage to trying to squeeze more profit from employees. Customers have watched the size of their cups reduced and prices of their double-double increased over the years. And having fewer employees is just going to slow the service and increase customer impatience. There has to be some balance.

And it is very foolish to take on the Ontario government in this situation. First of all, the government had resisted increasing the minimum wage for too long as it was. With the steady growth in the cost of living, there was no reason not to increase the minimum wage. The economics were barely tracking as it was. Ontario should have been at a $15 minimum hourly rate more than two years ago.

It was not as though the government did not give any warning. There was plenty of time for the Tim Horton’s franchise to consider computer models of the impact of the new minimum wage. The results of the models might cause a slowing of new hires in the short term but are unlikely to seriously impact earnings for either the franchiser or the franchisee.

And people should be very wary of blaming Premier Wynne for any of the problems that might be created in adjusting to the higher minimum wage. She might be slow but she is on the side of the angels in this argument. And she seems to be much better at public relations than these new Tim Horton’s franchise people

It was only when listening to an expert on Tim Horton’s operations the other day that I learned what a franchise can gross over a year. He was talking of earning of between $300,000 and $400,000 per franchise. Nobody need worry about the franchisers.


Copyright 2018 © Peter Lowry

Complaints, comments, criticisms and compliments can be sent to  peter@lowry.me

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