Two Tim Hortons outlets operated by Windsor Regional Hospital are losing $1,336 daily — equivalent to 645 large Double Doubles — according to new financial documents obtained by SecondStreet.org through an access to information request.
The hospital-run locations lost $487,662 in fiscal year 2023/2024, following losses of $500,931 the previous year. The total deficit has surpassed $2 million since the hospital began operating the franchises around 2010, according to the think tank’s analysis.
The losses stand in stark contrast to Tim Hortons’ overall performance. The coffee chain’s parent company, Restaurant Brands International Inc., recently reported better-than-expected earnings across its approximately 4,000 Canadian locations, even amid recession concerns.
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The hospital locations’ unusual financial situation stems from a past agreement with Unifor, the union representing hospital food service workers. As explained by then-CEO David Musyj to Postmedia in 2023, the hospital maintained Tim Hortons operations under the union agreement while contracting out main cafeteria services.
Consequently, employees receive the same wages as unionized hospital staff — $23.26 per hour including benefits for retail servers, and up to $32.12 for cafeteria aides after one year, compared to Ontario’s minimum wage of $17.20 typically paid at standard locations.
The situation differs markedly from other food outlets at the hospital. A Subway and an Armando’s Pizza, operated by independent franchisees, generated $48,844 in rental revenue for the hospital in 2023/2024.
The problems date back to 2012, when the hospital’s original Metropolitan Campus location was losing $265,000 annually. Despite these losses, the hospital opened a second location at its Ouellette Campus in 2015, which briefly achieved profitability before falling into deficit. Currently, the Metropolitan location loses $297,400 annually, while the Ouellette location loses $190,262.
SecondStreet.org, which has tracked these locations since 2020, highlighted them in a broader study of 74 Canadian hospitals that collectively lose between $5 million and $6 million annually on cafeteria operations.
The think tank argues these losses represent funds that could otherwise support patient care, noting the annual Tim Hortons deficit could fund approximately three heart transplants at $140,000 each.
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