00:00:01another edition of modeling the masters
00:00:03today we’re going to look at Ron Joyce
00:00:05the man behind the multi-billion dollar
00:00:07franchise Tim Hortons Ron Joyce is a
00:00:18Canadian multi-millionaire businessman
00:00:20he co-founded the Tim Hortons doughnut
00:00:22chain as Tim Hortons partner and first
00:00:24franchisee Joyce grew up in rural Norva
00:00:27Scotia in a house without plumbing and a
00:00:29wood stove for heating when he was three
00:00:31years old his father died leaving his
00:00:33mother to take care of the family on
00:00:34welfare when he was 16 years old he left
00:00:37home with his life savings of
00:00:38thirty-five dollars to try his luck in
00:00:41the real world after spending time in
00:00:43the Navy he returned home to start a
00:00:45Dairy Queen franchise and also joined
00:00:47the police force where he met Tim Horton
00:00:49Horton was a Canadian hockey legend who
00:00:52opened up a local coffee shop called Tim
00:00:54Hortons the little shop was failing when
00:00:56Joyce proposed forging a partnership and
00:00:58bringing his expertise from Dairy Queen
00:01:00to save it today Tim Hortons has over
00:01:033,500 locations
00:01:05100,000 employees and two billion
00:01:08dollars in revenues Joyce himself owns
00:01:10at least four yachts donates millions to
00:01:12charity and has so much money he has
00:01:15even offered to fly people on trips
00:01:16anywhere in the world if they can help
00:01:18improve his golf swing how did Ron Joyce
00:01:21get to where he is today he did it by
00:01:24building a tiny coffee shop by the name
00:01:26of Tim Hortons into one of Canada’s most
00:01:28beloved and successful brands
00:01:31so the next question becomes how can you
00:01:34model the success of wrong choice here
00:01:36are three action items that you can put
00:01:38to use in your business today action
00:01:41item number one match your talents with
00:01:43your passion you can be really good at
00:01:45something but not love it
00:01:47you can also love doing something else
00:01:49but not be really good at it to be
00:01:51successful as an entrepreneur you need
00:01:52to find the opportunity to combine what
00:01:54you love doing with what you’re really
00:01:56good at according to Ron Joyce I think
00:01:59people who excel in anything are often
00:02:01totally dedicated to it but are only
00:02:03good at one thing I look at the great
00:02:06athletes of all time like Michael Jordan
00:02:08who went from basketball to baseball and
00:02:10it didn’t work or Wayne Gretzky who
00:02:12probably wouldn’t have been great at
00:02:13anything but hockey are you like Michael
00:02:16Jordan trying to play baseball by doing
00:02:18something you love but aren’t really
00:02:19good at if you’re struggling to get your
00:02:21company to the next level try doing some
00:02:23soul-searching to see if you’ve matched
00:02:25up your talents with what you love doing
00:02:27in the best way possible
00:02:30action item number to treat your
00:02:33franchisees as partners franchising can
00:02:35be a great way to build a business
00:02:37because you don’t need to fund it
00:02:38yourself and you can create an army of
00:02:40hard-working managers who have a self
00:02:42interest in seeing you succeed however
00:02:44franchising is not a bulletproof concept
00:02:46and may fail when the franchisor is
00:02:48don’t provide the right support to their
00:02:50franchisees here’s Ron Joyce’s advice
00:02:53it was my philosophy to treat the
00:02:55franchise owners as partners he followed
00:02:57through by creating a doughnut
00:02:58University a central training facility
00:03:01where new franchise owners could go to
00:03:02learn the ropes of running the business
00:03:04and operate in a fast-paced environment
00:03:06he also established regular meetings a
00:03:08toll-free phone line and field
00:03:10evaluations to provide support to his
00:03:12franchisees who’s willing to do whatever
00:03:15it took to get his partner’s off the
00:03:16ground and running the result today only
00:03:205% of the company stores are corporate
00:03:21all the rest are locally and operated
00:03:23owned franchises with average profit
00:03:26margins ranging from 15 to 20% owning
00:03:29the Tim Hortons franchise is a promising
00:03:31venture in fact more than half of all
00:03:33franchisees own more than one unit treat
00:03:37your franchisees fairly and give them
00:03:38the support they need to flourish and
00:03:40they’ll build your business for you
00:03:44action item number three create a unique
00:03:47point of differentiation if you want to
00:03:49send out and win business from your
00:03:51competitors and you need to do things
00:03:52differently from them if there’s nothing
00:03:55different about you
00:03:56why should customers choose you when
00:03:57they’re probably more established
00:03:59companies they could go with when joyce
00:04:01took over tim horton’s he wanted to
00:04:02stand out from all the other coffee
00:04:04chains to do that joyce implemented a
00:04:06new set of business practices that
00:04:08focused on keeping things always fresh
00:04:10you began to insist that all Tim Hortons
00:04:12coffee pots be cleaned three times a day
00:04:14and that no coffee be older than 20
00:04:16minutes from the time the Brewers stops
00:04:18dripping all grounds were also to be
00:04:20thrown out immediately afterwards but it
00:04:23didn’t just stop at coffee the
00:04:24temperatures of all cheese products and
00:04:26sandwiches were to be checked every
00:04:27other hour as with soups donuts would
00:04:30have a shelf life of no more than 8
00:04:32hours and could also be made to order
00:04:33bagels and other breads were also to be
00:04:36sold for no more than 8 hours after they
00:04:38were made while cookies danishes and
00:04:40croissants could Google for up to 12
00:04:42hours and only enough cakes for a given
00:04:44day were baked in any store customers
00:04:48began to come to Tim Hortons because
00:04:49they knew they had the freshest products
00:04:51available and sales soared what is your
00:04:54unique point of differentiation is it
00:04:56something that customers really care
00:04:58about that makes you very different from
00:05:00your competitors if not it’s time to go
00:05:02back to the drawing board and create a
00:05:04value proposition that’s worth betting
00:05:05the company on
00:05:08so remember match your passion to your
00:05:11talents treat your franchisees as
00:05:13partners and create a unique point of
00:05:15differentiation I wanted to close the
00:05:17video with one of my favorite true
00:05:19stories about Ron Joyce
00:05:21despite the fierceness will put you ran
00:05:23his business and expanding his franchise
00:05:25Ron Joyce strove to always play fair
00:05:27once when a man applied for a Tim
00:05:29Horton’s franchise and was turned down
00:05:30he opened up a competing Robbins donut
00:05:33store nearby and saw his business
00:05:34explode this time around management of
00:05:37Tim Hortons became interested in the man
00:05:38and sought to open their own store
00:05:40nearby Joyce had already left the
00:05:42company by this point called his friends
00:05:44inside the business and convinced him to
00:05:46cancel their plans he said would be
00:05:48unfair to open a store and put out a
00:05:50business somebody hood once tried to be
00:05:52a part of the Tim Hortons franchise team
00:05:56thank you for joining me for another
00:05:57edition of modeling the masters I hope
00:05:59you enjoyed I’d love to hear your
00:06:01feedback if you want to leave a comment
00:06:02below the video and stay tuned to the
00:06:04next episode
00:06:51you
”