The real bully is Wynne.

The Canadian icon Tim Hortons has been taking quite a beating in 2018, or at least some of their franchise and franchisees have. Why? Because people have deflected deserving anger away from where it should be directed and piled it on hard working entrepreneurs that own a Tim Hortons franchise.

Premiere Kathleen Wynne and her band of left wing socialists have deemed it necessary to increase the minimum wage in the province of Ontario by a whopping 20.69% to $14.00 per hour and will jack it up another 7. 14% in 2019 when the Ontario minimum wage will be $15.00 per hour. That’s an amazing 27.83% increase in just 2 years. How many of you got a 27.83% wage hike?

Their argument is that the old minimum wage didn’t provide people with a “living wage.”

Wynne just screwed every worker in this province that was making between 14. & 18. per hour. According to averages wages increased 2.3 - 2.8% in Ontario last year. All these workers are now closer to the minimum wage than ever. Because taxes, groceries, and basic living expenses such as heat, hydro and water have risen far beyond the 2.8% level they have less discretionary money to spend which further hurts every small business owner.

The week after the increase came into effect I went out for breakfast. The cost of that breakfast went up $1.00 from what it had been. I will have to give up at least one breakfast out per week. If I’m doing it, so are others. Now that restaurant has higher cost (mainly labour) and lower income.

The person making minimum wage is also paying more for essentials, so how far ahead are they.

There are reports on line of people that worked at a restaurant for 7 years and were making more than the minimum wage and are now making the same money as the person coming in off the street and just starting the job. In the one report I read the person quit their job out of frustration. Why wouldn’t they be frustrated? The training, seniority and knowledge they had is of no benefit.

The media and a number of unions have been quick to jump all over the franchisees and business owners suggesting they are selfish and extremely greedy, only interested in getting richer on the backs of their employees.

Before we jump to conclusions and name calling can we consider some of the facts. To be a Tim Hortons franchisee you need a net worth of 1.5 million dollars with liquid assets of a 1/2 million. Now if you had 1.5 million dollars to invest what percentage return would you expect on that investment? Now that you own a Tin Hortons you must buy all your equipment and supplies from them. There is no shopping around for a better price. The corporate office needs a weekly payment of 6% of your gross sales as part of your agreement and once a month you need to send them another 4% of gross sales for advertising and promotion.

As a business owner you get to work 60 hours a week, not 40. During that 60 hours you will be expected to schedule all your employees, deal with their personal scheduling emergencies, sort out and settle personality conflicts, make sure you have all the inventory you need but are not overstocked causing waste, pay the bills, deal with inspections from government agencies and head office, and spend countless hours dealing with government red tape, CPP, EI and WSIB.

CTV Kitchener recently ran a piece about a restaurant in Guelph that is closing because they can’t make ends meet with the higher minimum wage. A business owner has lost his dream and he and his staff are now out of work. How fare is that? And there will be more. (The link to this broadcast is here.)

Have you seen the ads on television paid for with your tax dollar telling you how hard it is to make ends meet when you don’t make enough money? It goes on to point out how much better off everyone is now thanks to the new minimum wage. Well before Kathleen Wynne blows her own horn perhaps she should look in the mirror. Those making minimum wage weren’t the only ones that were having difficulty making ends meet; pensioners were also having difficulty. And now thanks to Wynne it is going to be difficult for a whole new group of people; the ones making 1-2 dollars more than the minimum wage. If Wynne wants to see why so many people are struggling perhaps she should look in the mirror. It wasn’t the Tim Hortons franchisees that decided to pay the head of Ontario TEN TIMES what other provinces pay their hydro CEO’s

So what is going to be the result of Wynne’s new minimum wage? I believe we will see a sharp rise in the poverty line in Ontario with a lot more people falling below it. Entrepreneurs that have in the past contributed to the well being and growth of their communities are going to lose their dreams, ending a lot of entry level positions. Investors will take their money to more friendly waters where they have a better chance of seeing a suitable return on their investment. And finally there will be a rise in taxes as more people find it necessary to depend on government handouts just to survive.

And the wheel turns and the cycle starts all over again. All this because Kathleen Wynne doesn’t understand what turns the wheels of the economy.