WENDY'S GOES SWEET
By Adnews Staff
U.S.-based Wendy's International is buying Canada's largest coffee and donut chain, Tim Hortons, in a deal worth over $500 million. Tim Hortons will operate as an independent division of Wendy's. Tim Hortons' ad agency is Enterprise Advertising in Toronto while Wendy's Canadian agency is Bates Canada. Tim Hortons has 1,000 outlets in Canada and 11 in New York State. Wendy's has 189 restaurants in Canada. Worldwide, it operates in 34 countries, with 1,283 company-owned outlets and 3,220 franchised restaurants. In exchange for all his shares of Tim Hortons' Canadian parent, TDL Group of Oakville, Ont., co-founder and sole owner Ron Joyce is receiving 13.5% of Wendy's. This will make him a bigger shareholder than Wendy's founder Dave Thomas who will have 5.7%. Early this year Wendy's and Tim Hortons announced they were rolling out a store sharing arrangement in the U.S. because it had worked well in Canada. Under the arrangement, both chains share a building but maintain separate kitchens, counters, drive-through windows and staff. Wendy's was founded in 1969 by Thomas who named the business after one of his daughters. Tim Hortons was started as a single shop in 1964 by NHL star Tim Horton who died in a car crash in 1974. Joyce left his job as a policeman to manage the store and soon became a partner.