Bye-bye, Burger King? One of Miami-Dade's biggest and perhaps most well-known corporate citizens may be moving to Canada.
According to the New York Times, Burger King confirmed yesterday that its pursuing a merger with Canadian coffee chain Tim Hortons that would see the fast-food chain moving its corporate headquarters from Miami-Dade to America's attic.
Tim Hortons is basically the Starbucks of Canada but with better doughnuts.
If the two companies merged, they would become the third-largest fast food company with a combined worth of $18 billion.
So why is BK thinking of heading up north? Taxes, apparently. The deal would be structured as a corporate inversion. That's a move where American companies buy a smaller, foreign-based company, relocate their headquarters, and then pay lower corporate income tax abroad.
Though, the Times points out BK currently pays a tax rate of about 27 percent and wouldn't save all that much by moving to Canada. However, the King is interested in Hortons for more than just tax reasons, and moving to Canada, they hope, would placate Canadian authorities who would have to approve of the deal. A final deal could be announced this week, though Burger King could walk away at any time.
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Burger King was founded as a single restaurant in Jacksonville in 1953, and then moved it corporate headquarters to Miami in 1954. Just four years ago the restaurant was bought by Brazilian Investment firm 3G.
This isn't the first time Burger King has threatened to relocate. Back in 1999, the company thought about relocating to either Atlanta or Dallas, but former county Mayor Alex Penelas pleaded with the company to stay.
It's unclear what the deal could mean for Miami's local economy, or if Burger King would completely cease having any corporate presence in Miami. Its current headquarters employs roughly 2,000 people.