Article

Tim Hortons brews up responsibility report, preps for price hikes

Some Canadian units have posted signs warning of impending price hikes, anticipated to be 7 cents for a large coffee.

April 7, 2011 by Alicia Kelso — Editor, QSRWeb.com

Ontario-based Tim Hortons Inc., operator of more than 3,100 restaurants in Canada and 600 in the United States, released its first-ever Sustainability and Responsibility Report this week, outlining environmental stewardship efforts made in 2010 and its objectives for 2011.

Highlights from the report, "Making a True Difference – Our Guiding Principles," include the development of menu items with lower sodium levels, increasing small farmer participation in the company's Coffee Partnership, the reduction of packaging within the supply chain and manufacturing operations, and increasing fuel efficiency.

Tim Hortons believed now was the right time to publicly communicate its initiatives because it recently (2009) began executing a sustainability and responsibility strategy that was developed and approved by its board of directors.

Tim Hortons' biggest objectives are to identify the best practices from within and outside of the quick-service industry, consider sustainable activities relevant to its business and brand, and analyze the practices already in place for continued progress.

The report details the company's new 3-year roadmap for strategy execution, including:

• Establishment of governance and oversight for sustainability and responsibility (S&R) with the board of directors
• Commitment to using the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines
• Development and communication of the S&R framework
• Implementation of a sustainability data management tracking system to monitor performance
• Establishment of an environmental baseline with respect to greenhouse gases, energy and water use

One issue having the great impact on Tim Hortons' business includes healthy menu choices. Accordingly, the company has reduced sodium content in all soup items by 22 percent and is developing new products with even lower counts.

On the environmental side, Tim Hortons' goal is to reduce packaging within its supply chain and manufacturing operations by 5 percent before 2012. The company also projects 5 percent energy and water usage reduction for all new restaurants this year, and a 5 percent increase in fuel efficiency for its distribution fleet.

"We believe our company has an opportunity to take a leadership role in our industry and seek innovative solutions to environmental issues, which includes a commitment to ongoing research and implementation of initiatives pertaining to waste reduction, waste diversion and energy and water conservation," the report said.

From a customer standpoint, Tim Hortons said its guest complaints were down 4 percent in 2010, while compliments were up 41 percent.

Tim Hortons has made plenty of strides lately, including an expansion beyond North American markets for the first time, numerous menu launches and tests and solidified footing in the increasingly intense coffee category.

The company also has recently outlined aggressive growth plans that call for 900 North American locations within the next couple of years.

Anticipated price hike

Although Tim Hortons has big plans, it still can't avoid climbing commodity costs, including coffee beans. Canadian press has been abuzz about the company's anticipated price hikes come Monday.

It is predicted that customers will pay about 7 cents more for a large coffee beginning next week. Some Tim Hortons' stores have been warning customers about the impending hike with disclaimer signs.

Tim Hortons raised prices by 3 percent in its U.S. units in February.

About Alicia Kelso

---

None

Connect with Alicia: