Canada PoliticsNova Scotia taxpayers forced to subsidize Tim Hortons’ losses
Question: How do you lose money operating a Tim Hortons franchise?
Answer: Let the government operate it.
CTV News has learned that taxpayers in Nova Scotia are covering the losses for four Tim Hortons' locations at the Queen Elizabeth II Health Sciences Centre to the tune of $1.4 million.
"Tim Hortons is part of our overall retail food services and they’re not profitable for us," John Gillis, the district health authority spokesman, told CTV.
"This year we are predicting a loss of $1.4 million."
[ Related: Tim Hortons workers file double-double rights complaint ]
Gillis blames the losses on high labour costs — the unionized coffee clerks make about $20/hour when the cost of benefits are included. (The minimum wage in Nova Scotia is current $10.15)
The red ink might also have something to do with a 2011 decision by Gillis' district authority to only allow healthier foods on the menu. Following the 'leading by example' credo, the "Timmies" locations in the hospital are only authorized to stock low-fat muffins, bagels and tea biscuits.
Whatever the case, Liberal leader Stephen McNeil says Premier Darrell Dexter needs to get involved and stop the waste.
"We have an aging population that demands more effective use of health dollars," McNeil said in a statement released Friday.
"It makes no sense that health dollars are being spent to support the sale of coffee and donuts."
Taxpayers in Nova Scotia do have some company with regard to flailing Tim Hortons' stores.
[ Related: Mature crooners hit all the right notes at Ontario Tim Hortons sing-along ]
In May, CBC reported that Ontario's Windsor Regional Hospital’s three Tim Hortons were losing $265,000 of taxpayers’ money a year. They also reported about one Timmies', at a Saint John's hospital, that was losing $260,000 a year; at that location staff made about $28 an hour (including benefits).
The moral of the story: unionized shops and no doughnuts make for unprofitable Tim Hortons' franchises.
