Monday, December 22, 2008

Investigation: Tipping Point of Tim Hortons Paper Cup


In this four-part series, AKAmamma will investigate the enviable status of Tim Hortons and how the company could use its position to effect change and become a corporate environmental model. She will also investigate the recyclability of the TH cup,what every caffeine-addict can do, and the issue brewing with the City of Toronto. And of course, AKAmamma will serve up some freshly baked environmental solutions.


As a Guerrilla Gardener last summer, I picked up more than a few Tim Hortons paper coffee cups and brown plastic lids on our gardening site. Can I blame Tim Hortons for lazy, inconsiderate, cowardly consumers who toss their coffee cups onto the sidewalk simply because no one is looking? Not really. But when the corporate goal is to sell as many cups of coffee as possible, they bear some responsibility.

First of all, although biodegradable, paper is an unsustainable option. My guess is that soiled paper cups cannot be recycled, but I will have to consult an expert to make sure (Part 2 of my investigation). Secondly the brown, non-biodegradable, polystyrene lid, made of number 6 plastic, cannot be recycled in the Montreal area and ends up in landfill. Hmm...

But Tim Hortons will allow you to bring your own cup and deduct 10 cents from the price. This symbolic gesture is also used by its competitors, Second Cup and Starbucks. Symbolic gesture, yes, incentive to bring your own cup, not really. It demonstrates that the company is open to solutions, but not interested in changing consumer behaviour.

According to its 2008 Q3 Investor Fact Sheet on its corporate web site, Tim Hortons commands more than 40% of the quick service restaurant sector and more than 75% of coffee and baked goods sector. Well, sounds like TH already has the lion's share of the market and is in the perfect position to influence consumer behaviour. If the company were to knock, say, 30 cents off the price of its take-out coffee then it would convincingly establish its brand as environmentally friendly.

But would people still litter? Of course. Would we find fewer Tim Hortons coffee cups and polystyrene lids on the sidewalk? Yep. Are fewer cups on the sidewalk good for the corporate image? Absolutely.

My goal here is not to ruffle any company feathers, but rather to provide company brass with some valuable feedback. As a mother of two, I think that our society as a whole has to work towards sustainability now for future generations.

Tim Hortons: Community Initiatives and Customer Loyalty

I did some extensive surfing on the TH corporate site and found a number of surprising facts. For starters, Tim Hortons is the fourth largest quick service food chain in North America and the largest in Canada, with 3,294 stores system wide (2,870 in Canada and 424 in the US). As a Quebec resident, I have heard but not witnessed the proliferation of this franchise. I shudder to think of the sheer number of soiled paper coffee cups piling up all over Canada and "select" American states. But I digress.

What I cannot overlook is Tim Horton's community involvement, specifically its camp for economically disadvantaged youth and its sponsorship of community activities for children and families. TH's focus on keeping children active through swimming, cycling, skating and minor sports programs is impressive indeed. The company also promotes Hallowe'en safety, provides poppies for Remembrance Day and assists charities. On these fronts, a model corporate citizen.

Unsurprisingly, this community involvement has created droves of loyal customers, and I mean droves. Consider this tidbit (timbit?) of information from the company's 2008 Q3 presentation to investors: 40% of customers visit Tim Hortons four times a week or more.

Now that's brand loyalty bordering on obsession, isn't it?

And again I raise my point: Tim Hortons is in an ideal position to influence consumer habits. By giving take-out coffee customers with their own cup a 30-cent discount, a noticiable difference in cost, more people would buy reusable cups, and the number of cups headed for landfill would be substantially reduced.

In tomorrow's articles, AKAmamma will look at the recyclability of the Tim Hortons cup, the problem in terms of sheer numbers, and the trouble brewing with the City of Toronto.


1 comment:

  1. i agree with you! for my geography assinment i am writing a letter to tim hortons to notify them of their litter, and paper problem. thank you very much, your article has been very insitful

    nicole dice: age 14

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