Tim Hortons, the renowned Canadian coffee and bakery franchise, is under intense scrutiny in South Korea due to allegations of overcharging local consumers. The controversy ignited following the recent launch of a Tim Hortons outlet near Sinnonhyeon Station in southern Seoul on December 14, 2023, attracting significant attention.
Former Toronto student David Kim, with fond memories of Tim Hortons, expressed disappointment during his visit to the newly opened Seoul location. A medium-sized black coffee, priced at 3,900 won ($3.97 Canadian), appeared considerably more expensive than the $1.83 charged for the same in Canada.
“I was hugely disappointed,” Kim remarked, anticipating prices akin to those in Canada. Similarly, Robert Lee, a former Tim Hortons patron in Calgary, voiced concerns, suggesting that current prices place Tim Hortons on par with other high-end coffee franchises in Seoul.
The alleged overcharging extends beyond black coffee, as a medium-sized Americano, a popular choice, is priced at 4,000 won ($4.07) in Korea, compared to $2.79 in Canada. Some local consumers deem this price gap unreasonably high, especially in light of the current trend favoring affordable coffee brands in South Korea.
Critics draw comparisons between Tim Hortons’ pricing strategy and that of Paik’s Coffee, a local brand known for its budget-friendly 1,500 won Americano. Allegations suggest that Tim Hortons’ pricing in Seoul significantly exceeds the standard set by other establishments.
The controversy gained momentum following the opening near Sinnonhyeon Station, with hundreds of consumers eagerly lining up. Two weeks later, Tim Hortons expanded its presence, opening a second Korean store at Seolleung Station in Gangnam District.
When questioned about the pricing concerns, BKR, the local food franchise operator overseeing Tim Hortons in Korea, declined to comment. Lee Dong-hyeong, CEO of BKR, had previously outlined plans to establish over 150 Tim Hortons stores in the country within the next five years. This ongoing debate raises pertinent questions about the localization of pricing strategies for international coffee franchises in South Korea’s competitive market.
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