Tag

ownership

Browsing

No, I will not forgive greedy Tim Hortons

On Friday, Tim Hortons released a press statement to counteract the complaints regarding the slashing of benefits and paid breaks for employees at an Ontario store owned by the children of the franchise’s founders.

The statement reads: “Let us be perfectly clear. These recent actions by a few Restaurant Owners, and the unauthorized statements made to the media by a “rogue group” claiming to speak on behalf of Tim Hortons®, do not reflect the values of our brand, the views of our company or the views of the overwhelming majority of our dedicated and hardworking Restaurant Owners. While our Restaurant Owners, like all small business owners, have found this sudden transition challenging, we are committed to helping them work through these changes. However, Tim Hortons® Team Members should never be used to further an agenda or be treated as just an ‘expense.’ This is completely unacceptable.”

Essentially, the actions of a few spoiled children have resulted in a public relations nightmare and head office decided they needed to respond — without actually offering any assistance, solutions, or guarantees.

Last week, I wrote an article about how the Tim Hortons franchise was being greedy. I said a company that made roughly $3 billion (US) in revenue last year shouldn’t be so quick to devalue their employees. I also said I would not be purchasing any more product from the franchise.

Cue the comments from people defending Tim Hortons, many of whom I would bet make more than minimum wage.

A common argument expressed on social media was that I shouldn’t boycott all Tim Hortons based on the response of one or two store owners. While it is true that not all stores have decided to react to the minimum wage increase in this manner, the franchise itself is partially to blame. Most people have expressed a willingness to pay an extra 10 cents for a cup of coffee or a donut to make up the costs lost to the owners. People are actually asking Tim Hortons to raise prices so that their employees can afford their rent.

These people are the heroes Ontario needs.

Tim Hortons, on the other hand, has not raised prices. They have not promised to absorb the cost of the minimum wage increase. Instead, they chastised store owners for having to make difficult (and wrong) decisions. They claim no responsibility, merely saying they were “saddened” to hear of the actions taken by a “reckless few.”

Cry me a river.

It’s not like businesses didn’t see this coming. Ontario Premier Kathleen Wynne made the announcement back in May 2017, saying the minimum wage will increase to $14 on Jan. 1, 2018. That was seven months ago. Did no one do the math? Did no one think: “maybe I should look at the books to figure out how I’m going to make this work?”

And it’s also not just Tim Hortons. Other big chains are dipping into their employees tips and laying off staff,. Sunset Grill is increasing their servers’ tip out by one per cent. This is part of a process called tip pooling, in which servers pay a portion of their day’s tips to support staff like bussers, cooks, and dishwashers. This tip out increase comes in addition to menu price increases at Sunset Grill. The Clocktower, a restaurant in Ottawa, is now removing dishwashers from the tip out, saying they make enough now that minimum wage has increased. They also increased their tip out by one per cent. Smaller businesses have cut store hours and even changed to commission-based wages rather than increase their hourly rate.

Unfortunately, this is how it will be for a while. Corporate head office will blame store owners. Store owners will blame the government. The government will call the store owners “bullies”, and then corporate head office will step in with a nicely worded press release. But, at the end of the day, who is actually left hurting? The employees caught between the madness.

It’s a few dollars per shift. If you can’t figure out the math and get creative, you don’t deserve to own a business.

So, to conclude — thank you for all the comments and remarks, but I’m going to keep boycotting greedy Tim Hortons. And if you had respect for the minimum wage workers in this province, you would do so too.

New Airbnb regulations for the City of Toronto

A new set of regulations for short term rental spaces, such as Airbnb, has been approved by Toronto’s city council.

One of the biggest changes is that basement apartments have now been banned from use as a rental space, leaving many potential landlords who use Airbnb to make some extra cash out in the cold. By limiting guests to people’s primary residences, the city hopes to have better insight into the current housing situation in the city. It also allows more of these suites to be available for long-term contract rentals. One of the new regulations states that only long-term tenants of secondary suites, not the owner, could offer up space for nightly rental.

This step will mean that families who take part in home sharing will now be regulated and formally recognized. Alex Dagg, the policy director for Airbnb Canada said, “This is truly a big step forward for the City of Toronto, in terms of supporting the fact that we have thousands of families in Toronto who have been home-sharing and are now going to be formally recognized and regulated. We look forward to working with the city on the next steps.”

Short term home-sharing hosts will now pay the city $50 per-year for a rental maximum of three rooms, which will be rented for no more than 180 nights per year. The unpredictability of the current housing market in Toronto, along with fluctuating costs, could mean there will be more short-term rentals and less room for long- term tenants.

Those fighting to include secondary suites argued these rules put many homeowners at a disadvantage and they should be allowed flexibility in the choice of renting out spaces they choose. Toronto Mayor John Tory voted in support of the regulations, saying that City Council had the responsibility to put reasonable limits on property use.

Airbnb, which is a San-Francisco-based company that allows users to book home-sharing services online, said that in the past year there were over four million Canadians that have used this service to travel domestically. Earlier this year as part of the government’s pre-budget process, Airbnb sent a letter to the House of Commons finance committee asking the government not to over regulate. This request was unrelated to Toronto’s new regulatory process. So far, the regulations seem to be pleasing to both the government and Airbnb.

The government is set to revisit the rules in 2019 as this will provide a timeline in order to observe any major changes to Toronto housing.

What do you think about these new regulations? Comment below.

Co-operative housing may be the way of the future in Toronto

Have you ever dreamed of buying a house, but didn’t have enough money?

It turns out with ‘C-Harmony: Creating Co-operative Connections’, it may be possible to still buy a home by joining with other prospective buyers. The concept comes from owner, Lesli Gaynor, who launched GoCo., an enterprise that helps facilitate co-ownership and runs the C-Harmony events. The first pilot event held last week brought together prospective buyers to meet in a speed-dating styled experience to see if they are compatible to purchase real estate together.

Gaynor came up with the idea when she co-purchased a home with a friend several years ago and shares her experience with others looking to do the same. GoCo facilitates events and support services to help with financing, the legalities of co-ownership, risk mitigation, finding partners and property, and establishing an agreement. Though the idea of co-owning seems unorthodox, the more you look into GoCo, and the steps to take to make it happen, it becomes a sensible way to buy in an expensive city such as Toronto.

Begin by calculating what your current rental payments are and average that amount to equal what you would pay in mortgage and expenses. This lays the groundwork for how much you can afford and what you could provide financially in a co-operative ownership. There are other issues to consider once you decide to proceed with co-owning such as discovering what your living needs are. Do you want two bedrooms? A backyard space? How many bathrooms? Once all this criteria is laid out, the idea is to find an owning partner who has the same needs, equitable finance and a compatible personality. Then you can set out on finding a property together.

Other key considerations include deciding how the property will be divided. There are many different ways according to GoCo. on how to proceed with co-sharing including living in the home together, or one party living in the house while the other invests money into it. Both parties would need to decide what works best for them and divide financial responsibilities and bills in advance to avoid any issues.

Though co-owning a home is a difficult decision to make, it is a progressive concept for community building in an expensive real estate market such as Toronto. GoCo. is giving a forum for people to join together and compete in the housing market, which will allow more families and individuals access to good homes. It will be interesting to see how this new speed-dating concept of co-owning proceeds in Toronto and if it grows in popularity.