A More Expensive Cup
by BenCummings
“It’s something that we will, and are, working on closely with our restaurant owners to understand what actions may be necessary,” Tim Hortons CFO Cynthia Devine said when asked about the rising price of Arabica beans.
Tim hortons coffee drinkers better prepare for an increase in their coffee budget. In this upcoming year, Tim hortons is reviewing the prices of the coffee and taking into consideration the increase in the price of Arabica beans. Tim Hortons executives are going to continue to investigate the situation and find the best possible price increase or solution to this problem. Arabica bean pricing is increasing rapidly and other coffee makers and restaurants are making the leap in preparation for the upcoming budget change.
Tim Hortons will face a lot of challenges throughout this upcoming cost increase. In my opinion, Tim Hortons should stay true to themselves. The cost increase impact should be minimized and they should only increase prices enough to get back to their target profit as a company. If they increase prices and start to diversify from their original business model, Tim Hortons will be compared and evaluated at the same price range and status as Starbucks
Picture: http://www4.timhortons.com/ca/images/general/tim-hortons-takeout-cup.jpg