Canada lost $3 million subsidizing Tim Hortons: report

‘Yes, the government owns two franchise locations of one of Canada’s most successful companies and no, the government can’t run the coffee stands on a break even basis,’ said SecondStreet.org, a free-market think tank.

Two Tim Hortons locations are on the hook for six-figure losses in consecutive years. But here’s the ticker: they’re both owned and operated by the Trudeau government.

According to SecondStreet.org, a free-market think tank, both locations at the Windsor Regional Hospital lose upwards of $1,000 a day — a blatant waste of taxpayer dollars.

Over the past decade, hospital administrators have lost roughly $2 million. “At some point, you have to reach a breaking point where you say ‘enough is enough,’” said Colin Craig, the SecondStreet president. 

New financial records obtained by the think tank show both locations collectively lost $487,662 in the 2023/2024 fiscal year — a small decrease from losses of $500,931 in the previous fiscal year. 

“Tim Hortons franchises at the Windsor Regional Hospital have now lost approximately $3 million since 2010-11,” reads a think tank press release.

“Yes, the government owns two franchise locations of one of Canada’s most successful companies and no, the government can’t run the coffee stands on a break even basis.”

Meanwhile, the parent company to the beloved Canadian donut shop has posted higher-than-expected earnings due almost entirely to Tim Hortons “outperforming the market.” 

Restaurant Brands International Inc. operates some 4,000 locations across Canada, with recent monthly sales recovering in the midst of the country’s economic decline.

SecondStreet.org questioned the “baffling” mismanagement by hospital administrators, who insist their decision to run two franchises was owing to a long-standing agreement with Unifor, the union representing its food services staff.

Further analysis by the National Post revealed staff are paid far beyond minimum wage in the province in place of what unionized hospital workers make.

Both locations pay a starting wage of $23.26 per hour, including benefits. If workers are hired as a “cafeteria aide,” that jumps to $31.50 per hour, including benefits.

Ontario minimum wage is currently $17.20 an hour.

SecondStreet.org learned that 74 Canadian hospitals collectively lost upwards of $6 million a year in unprofitable cafeteria operations.

Windsor Regional Hospital previously considered slashing hours to save on costs, reported the Post

The report argued that Canadian health-care is inefficiently run. “When hospitals lose money through selling food and beverages to the public, those dollars cannot be used to pay for services that help patients,” it said.

Rebel News could not reach Craig for further comment at the time of publication.

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Alex Dhaliwal

Calgary Based Journalist

Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

COMMENTS

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  • Bernhard Jatzeck
    commented 2024-12-14 01:06:33 -0500
    Can anyone explain to me why a private company like TH is getting government subsidies?
  • Susan Ashbrook
    commented 2024-12-13 21:00:03 -0500
    There are no consequences in government for loosing money… other than you get another bonus.
  • Bruce Atchison
    commented 2024-12-13 20:16:06 -0500
    Governments can’t run businesses successfully. It’s happened over and over. Even Petro Canada had to be privatized because it was losing money.