Tim Hortons Industry Analysis

The coffee served in Second Cup is also high quality and the drinks available strongly rival those in Starbucks. In the past decade there has been an explosive growth of 157% in the area of coffee shop market. Canadian coffee market share, new companies have limited to no space for growth in North America. Second Cup’s market share at the Canadian market is about 8%.Upon these facts and analysis there is an unlimited growth possibilities in the coffee market in Canada. There are different factors that do influence in the purchase of coffee from these outlets and the the way these coffees are priced. Customers are reluctant to get coffee from these outlets as the prices are too high than the coffees that could be made at home. There is a huge conflict between the pricing of coffees at these places and homemade ones. Coffee shops are determined to serve the best quality coffees which are been imported from South America and Africa, due to the rise in oil prices transportation charges have also been increased. And also due to different global climatic conditions the prices of these gourmet coffee beans have been increased.

Coffee has not only impacted the world socially, but it provides financial means for many countries who export their coffee beans.

Have you every thought about every food item you consume in a day? Where does it come from and how did it get to your plate? The activities required for food items to be extracted from its source and delivered to your plate must go through a cycle called a value chain. It consists of 2 sections; primary activities and secondary activities. Primary activities involved are inbound logistics, operations, outbound logistics, marketing and sales, and service until it reaches the hands and mouths of the consumer (Porter, 1985). Secondary activities include procurement, human resource management, technological development and infrastructure (Porter, 1985). The value chain requires both primary and secondary activities to work efficiently and effectively to ensure that goods get passed down stream to the market. Businesses invest in value chains as they are designed to enhance the value of the product through “effective coordination of operational and organizational support activities” (Gooch, 2005). This paper aims to define two food items consumed during breakfast and track their value chain from start to finish, focusing on the primary activities. The two food items to be discussed in this paper is Tim Hortons coffee and BC eggs. Tim Hortons value chain aims to illustrate environmental impacts, and BC eggs value chains aims to illustrate economic impacts.

Tim Hortons is currently recognized as the largest fast food restaurant chain in Canada. It provides a variety of products that are appealing to a broad range of costumer choices and the prices are relatively attractive for most of the consumer range. They prices are priced low and that’s why they are often favored by people. The company’s product line consists of premium coffee, espresso-based hot and cold specialty drinks (including lattes, 3 cappuccinos and espresso shots, specialty teas, fruit smoothies), home-style soups, fresh sandwiches, wraps, hot breakfast sandwiches and fresh baked goods.

Costa Rica now provided raw material for Starbucks which accounted for about 15 percent of the total coffee beans Starbucks needed every year. Costa Rica as one of the raw material suppliers plays an important role in global value chain. Coffee has played a pivotal role in the development of Costa Rica. It has shaped social, cultural and political institutions and is still one of country’s major agricultural exports. (Anywhere, 2016) The global value chain in this coffee industry can be described that Starbucks, the centre in this coffee global value chain, purchasing raw materials (coffee beans) from coffee farms in Costa Rica, reprocessing and reproducing in retail shops, selling the finished products (various kinds of coffee) to customers in the world.

We can understand the relation between commodity and trade development through the study of coffee and it’s origins. Over about 90% of coffee is produced in the South, and consumed in the North. Or a long time Latin America has provided most of the world’s coffee. Coffee comes from a cherry produced by a tree that requires a warm climate without any sudden temperature shifts or frost and it needs plenty of rain. This climate is ideal for coffee between the tropics of Cancer and Capricorn. During the movement of coffee from harvest to export the first step is to separate the coffee bean from the skin and the pulp of the cherry, this results in what is called “green” coffee. Before it is exported the coffee is cleaned and sorted into lots that have different quality attributes, something like the grain elevators. The lots vary as they go from country to country based on the size, the shape shape and the deficiencies it might have or the way it is processed. At this point in the process the coffee still has it’s individual quality and value.

As student-consultants, we paid regular visit to the Tim Horton's branch (at Baseline/Carling) and we studied the

Ever since the first coffee bean tree was discovered in Ethiopia, the bean became a pleasurable commodity that spread quickly to Yemen and other Asian countries. It wasn’t long before it came to Brazil, becoming one of the largest coffee producing countries in the world today. Throughout time, people came up with brewing systems and coffee-making machines that made it easy to manufacture coffee but it wasn’t like that in the early 1800’s. Slaves came into Brazil and were forced to work in difficult labor conditions to collect and roast coffee beans.

focus on coffee and hereby take an approach similar to Boratav (2001) who examines terms

After the coffee is roasted it is packaged. This stage of the value chain includes the physical packaging of the roasted coffee as well as the upstream material requirements for the packaging itself.

Internationally, Tim Hortons is fighting in a very saturated market, with a much smaller grasp on the market share, in proportion to its operations in Canada. Their goal is to expand by roughly 300 restaurants in the U.S. before the end of 2018, by enacting new developmental plans. These plans will be complemented by brand and channel additions to push brand awareness and penetration.

There are a number of significant competitive barriers within the coffee bean and coffee grind industry. While virtually any firm can purchase the raw materials or even the finished product in the form of ground coffee, the packaging and distribution of the product is a much more sophisticated endeavor. The most significant

The coffee industry has proven there is a never-ending shift of global power through the global economy. Thus, through the history of coffee, it is apparent that factors involving the globalization process such as absolute advantage and comparative advantage have had an impact

Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,

By item, we can see that some of Starbucks product position in the business. In the stage of introduction, Starbucks products, for instance, frozen yogurt and coffee in business is new a product. At that point, Starbucks stores in a couple of nations like Japan, China, and Singapore ,Indonesia, and fundamentally in Asia are a star thing because it has a high market advancement where the association push Starbucks to wind up lifestyle for people especially in urban zone in these nations.