Burger King and Tim Hortons are two successful brands in the fast-food industry that are appreciated for their unique offerings. However, a merger between the two brands has created a new connection between these chains. So, does Burger King own Tim Hortons? Let’s find the answer to it.
Burger King acquired Tim Hortons. But later, it turned into a merger between the two and led to the formation of Restaurant Brands International (RBI). It is one of the largest fast-food companies in the world that operates many restaurants in different countries.
Are you surprised by the same ownership of both brands despite their different menu? Well, you must go through this entire article to know more about the connection between these two brands.
Yes, Burger King Owns Tim Hortons Indirectly
Burger King acquired Tim Hortons in 2014, creating a new corporate entity, Restaurant Brands International (RBI). This acquisition was significant in the fast-food industry. It allowed both Burger King and Tim Hortons to operate under the same corporate umbrella.
However, before Tim Hortons was acquired, RBI acquired Burger King. Burger King was also acquired by 3G Capital in 2010, and then 3G Capital merged Burger King with Tim Hortons in 2014 to create Restaurant Brands International (RBI).
As a result, a global fast-food behemoth was created, offering a diverse range of food options. Burger King is globally known for its Whopper sandwiches, flame-grilled burgers, fries, and milkshakes.
On the other hand, Tim Hortons is popularly noted for its coffee, donuts, breakfast items, sandwiches, soups, and baked goods. Thus, the merger helped RBI become a formidable competitor in the fast-food industry. Let’s learn more about RBI in the sections below.
What Is RBI? (Restaurants Business International)
Restaurant Brands International (RBI) is a worldwide fast-food corporation that owns, runs, and franchises a diverse portfolio of well-known restaurant brands. It currently includes Burger King, Tim Hortons, Popeyes, and Firehouse Subs under its umbrella.
However, it aims to expand its brand’s presence in various markets to offer a diverse range of fast-food options to customers around the world. Currently, the headquarters of RBI is in Toronto, Canada.
Now that you know two more brands operated by RBl, find out if Burger King owns Popeyes. It will help you understand the functioning of brands under RBI.
Is This Acquisition Good For Tim Hortons?
Yes, Tim Hortons’ acquisition by RBI has worked for the coffee house. They have made significant profits. Tim Hortons achieved 17.9% system-wide sales growth. However, they have also faced some challenges.
Restaurant Brands International (RBI) completed the acquisition of Tim Hortons on December 12, 2014. The brand has taken advantage of RBI’s experience and resources.
Tim Hortons, for example, has expanded its footprint beyond its core Canadian market. This process has aided its expansion and improved its global reputation. It has also resulted in cost reductions and improvements in supply chain management.
Remember that all businesses under RBI’s umbrella profit from cross-promotions and collaborations that benefit everyone. Furthermore, RBI’s resources and investments have aided in improving the customer experience.
According to a report shared by World Coffee Portal, Tim Hortons sales have increased as the Canadian coffee chain has added 300 new stores in the first quarter. Thus, they have 5,620 stores around the world today.
The report also mentions that Tim Hortons’ business in Canada generated sales of $1.42bn compared to $311m across its international portfolio. Let’s look at the pros and cons of Tim Hortons’ acquisition by RBI.
| Pros | Cons |
|---|---|
| Has helped in global expansion. | There have been reported tensions between Tim Hortons franchisees and RBI. |
| The merger has also resulted in operational efficiency with R.B.I.’s experience. | Some Tim Hortons customers have expressed concerns about maintaining the brand’s Canadian identity and the quality of its food and coffee. |
| Tim Hortons benefits from the diversity of brands that provides opportunities for collaboration with other brands. | The introduction of changes in operations, such as cost-cutting measures or changes in supply chain management, has been met with resistance in some instances. |
| RBI’s resources and investments have enabled Tim Hortons to continue innovating its menu and enhancing the customer experience. | Tim Hortons faces challenges in maintaining and growing its market share in the face of strong competitors. |
So Is Tim Hortons Still Canadian After The Merger?
Yes, Tim Hortons is still recognized as a Canadian brand despite being owned and managed by a larger multinational company, RBI.
While the merger resulted in some corporate structure changes, the brand’s Canadian identity remains a vital part of its image and customer appeal. The merger involved moving the new corporate headquarters to Canada.
Does Burger King Serve Tim Hortons Coffee After The Merger?
No, Burger King does not serve Tim Hortons’ coffee at its restaurants after the merger. For its coffee supply, Burger King has partnered with Seattle’s Best Coffee, a subsidiary of Starbucks Corporation. They use an Arabica and Robusta coffee blend to create their signature coffee.
Therefore, you can be assured of getting your daily caffeine kick at Burger King. The fast food chain offers many coffee varieties. However, besides coffee, Burger King also offers drinks such as Coca-Cola, Fanta and milkshakes like strawberry and chocolate.
Did This Merger Affect The Food Quality In Tim Hortons Or Burger King?
Yes, the merger has positively affected Tim Hortons and Burger King’s food quality. That has been because of new collaborations and the introduction of new flavors.
Tim Hortons’ has introduced many more new items on the menu after the merger that customers have praised. For example, their recent collaboration with Justin Bieber introduced a limited edition “Timbiebs Timbits” in three flavors the Canadian pop star selected.
According to the RBI CEO, This collaboration “was one of the more successful traffic-driving initiatives in recent memory and outperformed our internal expectations.”
Speaking to Yahoo Finance, he also said, “We have been investing quite a bit in quality of food and quality of beverages. We launched freshly cracked eggs. We also launched our cold brew, our quenchers, and our new ring-filled doughnuts.” All such initiatives have worked in the growth of sales.
According to the Financial Post, “Tim Hortons’ annual sales of US$6.5 billion in 2021 beat 2020 by roughly 19 percent and came just shy of 2019’s US$6.7 billion.”
Likewise, Burger King’s food quality has improved since its merger with RBI. Per RBI CEO José Cil, the streamlining of Burger King’s menu has been a key to success.
“We’re putting resources and efforts behind the right things, which is all about guest experience and guest satisfaction. That’s where we think we have a tremendous opportunity with BK in the US,” he said.
“We launched with three delicious flavors and added the product to our flame-grilled selection for a limited time,” said Cil. “Results demonstrate that the offering had strong messaging with high-quality ads [which] performed well on our digital platforms and proved incremental to a burger platform at a healthy price point.”
Conclusion
Restaurant Brands International (RBI) owns both Burger King and Tim Hortons. It is a multinational fast-food holding company that owns Popeyes Louisiana Kitchen and Firehouse Subs.
However, with more fast food restaurants trying to match with Burger King, it’s good to find out which ones are leading the way. Therefore, a quick look at our unique McDonald’s vs. Burger King vs. Wendy’s article will help you find out which is the best.
Furthermore, if you need help deciding between KFC vs Burger King, this article can help you choose the best one. While at it, why not look at which fast-food restaurant—Whataburger or Burger King—serves better burgers?
Frequently Answered Questions (FAQs)
Does Burger King Own Tim Hortons?
Yes, Burger King owns Tim Hortons. Tim Hortons agreed to be bought by the company that owns Burger King in December 2014.
Who owns Burger King and Tim Hortons?
Restaurant Brands International (RBI) owns Burger King and Tim Hortons.
What is Restaurant Brands International?
Restaurant Brands International (RBI) is a Canadian multinational fast-food holding company. It was formed in 2014 when Burger King merged with Tim Hortons. RBI is headquartered in Oakville, Ontario, Canada, and is one of the largest restaurant companies in the world.
What are the other restaurants owned by RBI?
Besides Burger King and Tim Hortons, RBI also owns Popeyes and Firehouse Subs.
Do Burger King and Tim Hortons share menus?
No, Burger King and Tim Hortons do not share the same menu. Each brand has its unique menu, and RBI plans to keep that the same. RBI may, however, initiate cross-promotions and marketing efforts to capitalize on the qualities of each brand.
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