Tim Hortons announced they will be raising the prices on some of their menu items starting on April 11th 2011. The Canadian coffee chain didn’t specify which items will be affected by the price hike, but Tim Hortons did say the price of a large cup of coffee is expected to rise seven cents.
“I don’t think there is any question that everyone in our industry is feeling the crunch from commodity prices. At the end of January, coffee had seen a price increase of over 70 per cent in seven months.” Don Schroeder, president and chief executive of Tim Hortons told the National Post.
The price increase reflects the rising costs of commodities like sugar, cooking oil, coffee beans and wheat. The price of wheat, alone, has gone up 70 per cent over the past year. “While we know they will be cautious and prudent when looking at price increases that affect their guests, we expect that certain regions and markets in Canada will need to take price increases,” said Don Schroeder.
The news comes after Tim Hortons raised price in their US stores by three per cent. Last fall competitors such as Dunkin Donuts and Starbucks all increased their prices.
Related: CBC News Article