Tim Hortons coffee houses fleeing U.S. for tax relief

July 1, 10:52 AMCoffee ExaminerMary Ann Lien

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Nate Enyedi

Tim Hortons Moves Home to Canada

Tim Hortons, a popular coffee house chain with over 500 US locations and 3,000 Canadian, will move its headquarters back to Canada, and plans to reorganize and convert back to a Canadian-based business, reports the Fort Frances Times Online.

The company states that Canada’s lower tax rates and the ability to more easily expand internationally is the motivation for the move.

History of Tim Hortons

Tim Hortons opened in 1964 in Hamilton, Ontario serving only two products—coffee and donuts, and was the home of two original creations, the Apple Fritter and the Dutchie. By 1995 the chain had grown to 1000 units when they merged with US based Wendy’s International. In 2006 they spun off as an independent company and now trade on the NYSE as well as the TSX (THI).

Tim Horton (1930-1974) spent twenty-two years in the National Hockey League, playing for such teams as Toronto Maple Leafs, New York Rangers, Pittsburg Penguins, the Buffalo Sabres, four Stanley Cup teams, and was an All-Star player six times. In 1964 he opened the first Tim Hortons franchise, and in 1967 he became full partners with his first franchisee, Ron Joyce, who became the full owner of the company following Horton’s tragic death in an automobile accident in 1974.
 

Tim Hortons Community Involvement and Coffee Sustainability

The company has long been known for their community involvement. Ron Joyce founded the Tim Hortons Childrens Foundation benefiting American and Canadian children and the funding comes primarily from the private donations of store owners, their parent company, TDL Group Corp., and others associated with the chain. The company also supports coffee sustainability by providing financial assistance for technical training for farmers, and to assist with environmental management and reforestation projects. Hortons believes that requiring certification of the coffee growers places an excessive financial burden on them and does not ensure a fair price for their product, and so their approach has been to sow financially directly into the coffee growing communities. They currently have relationship with ACCSO (Asociacion Comercializadora Cafe Sustenible Oriente) in Guatemala, plus growers in Columbia, and Brazil.

Tim Hortons became known for their coffee which remains the foundation of their business, and their special blend can be purchased packaged for home use as can their hot chocolate and several flavored cappuccinos.