Tim Hortons and Burger King: A Merger That Fits Like A Good Hockey Glove

Yesterday, I covered the tax benefits to Burger King in the Tim Hortons merger.  But what's in it for Tim's?  Some Canadian nationalists and socialists (the New democratic Party - NDP)  are screaming OH NO !  Don't let the American giant squash an iconic Canadian Brand that sells 8 of 10 cups of coffee in Canada!  Already, NDP industry critic Peggy Nash has condemned the merger:  "We want to make sure those jobs are protected as well as ensure that the Tim Hortons brand and the Tim Hortons experience continue to be part of our Canadian society".

Calm down everyone, the Canadian icon and Canadian pride are quite safe.  The fact is both companies will continue to operate under their own business models and their own Brand Names.  For Tim Hortons, the merger enhances access to the American market - a market T.H. has been trying to crack since 1985, without much success.  For example, Burger King has extensive real estate holdings in America.  Tim Hortons could move into Burger King locations and set up combination restaurants, much like same-location KFC and Taco Bell.  Or Burger King could sell Tim Hortons coffee and doughnuts in-house.  Whatever the combination, the opportunities to co-market are extremely attractive for both Brands.  Now Tim Hortons can really give its competitors like McDonald's and Dunkin' Donuts a run for market share.

Another appealing prospect for Tim Hortons is the fact that Burger King operates in 79 countries.
What an opportunity for international expansion!  Right now, T.H. has locations in the Middle East - United Arab Emirates, Qatar, Bahrain, Kuwait and Oman.  But apart from its struggling restaurants in the U.S., that's it.  Now with the merger, a whole new world opens up - what a great opportunity for T.H.  to become a major player on the world scene!

Tom Pirko, president of a food and beverage advisory firm (Bevmark LLC)  said:  "Americans are so chauvinistic.  They tend to think, 'Oh, an American company bought or is merging with a smaller Canadian company.'  The reverse is true here.  The real power in this deal lies with the Canadian side".  So all you nay-sayers, stand aside, and watch Canada's entrepreneurial spirit catch fire!

P.S.  Tim Horton was a professional hockey player and as we all know, Canada is hockey and hockey is Canada!  Go Canucks!