Monday, April 13, 2015

Competition at the the fast-food end of the coffee market is getting more intense

Sign at McDonald's, The Royal Centre, Vancouver, BC
Sign outside Tim Hortons, The Royal Centre, Vancouver, BC

During the 2014 and 2015 Tim Hortons "Roll Up The Rim To Win" promotion McDonald's countered by offering free coffee. This resulted in less traffic at Tim Hortons locations.

Even though the promotion finished weeks ago, McDonald's is still on the offensive. Any size of coffee for $1.35 is a direct attack on the mainstay of Tim Hortons business.

And as with most price wars this will not be pretty. You only get into a price war is you have deep enough pockets to put your competitor out of business. But while McDonald's certainly has deep enough pockets, I think that this may be an attack on Burger King, the new owner of Tim Hortons.

We'll have to see who blinks first.

Labels: , , , , , ,

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home