When you think of Burger King, what do you associate it with? Personally, considering fast food chains, Burger King is not a brand that comes out on top in terms of quality in my mind. Originating from the United States, Burger King arguably has a big presence in the fast food industry worldwide with over 14,000 chain stores around the globe. Compared to the “big giant” down under us, we – as Canadians- have very little presence in the global food industry. However, Tim Hortons is the only fast food chain that is truly recognized and respected as Canadian and in terms of quality of food, I firmly believe that Tim Hortons trumps Burger King. In August 2014, Tim Hortons made a $12.5-billion merger with the U.S. company believing that they will make 23 billion in system sales together. As far as I am concerned, Tim Hortons has made a grave mistake. Although the CEO of this new joint company (the previous CEO of Burger King Int.) has stated that the two fast food chains will run separately- as a Canadian consumer- the point of difference that Tim Hortons originally carried as a recognizable Canadian, community-oriented and high quality food brand has now been diluted with the mix of Burger King’s reputation.
Tim Hortons current CEO states that “as an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base.” Although Tim Hortons may have accepted this deal hoping to expand its franchise, I believe that Burger King’s interests in making this deal far outweigh the benefits Tim Hortons will receive. In the deal, the joint company will be owned by an Ontario-based company- a method that allows Burger King to transfer its main location out of the United States so that they can pay a lower tax rate. Since Tim Hortons not fully “Canadian” anymore – since it has been bought by Burger King – I believe that sales in Canada will slowly decrease due to Tim Hortons’ main point of difference vanishing.
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