Tim Hortons President and CEO Donald B. Schroeder speaks during the company’s annual meeting in Toronto on Friday. Schroeder says the company is doing what it can to avoid further price increases to consumers but warns they’re inevitable at some point because of higher costs. The company has raised prices in the past to offset the higher cost of food, baking commodities and energy, and Schroeder says prices may go up again as Tim Hortons copes with the recession.
But he says Tim Hortons store owners are doing what they can to reduce non-value-added costs first before they consider charging more for a cup of coffee or a doughnut. Schroeder says the company is also embarking on an ambitious expansion plan in 2009. Tim Hortons plans to open 150 to 180 new stores this year, with 30 to 40 in the U.S. and the rest in Canada. Currently, the chain operates about 3,200 stores in both countries.