Tim Hortons Called Out in South Korea for Allegedly Overcharging Customers

Tim Hortons entered the South Korean market and opened its first store just last month in Gangnam district of Seoul. The second outlet immediately followed after two weeks and was launched in Seolleung Station in the same city.

Tim Hortons plans to expand further in the country and targets 150 locations in five years. However, less than a month after the first store was inaugurated, the Canadian coffee chain brand was already called out for allegedly overcharging its Korean customers.

Higher Menu Prices than Canada

According to The Korea Times, a customer named David Kim visited a Tim Hortons store in Korea, and he was surprised when he saw the menu prices. He was disappointed that a medium-sized cup of black coffee cost KRW3,900 or C$3.97.

Kim studied in Toronto, Canada, and buying coffee at Tim Hortons has been a habit. The brand became his favorite because the drinks and food are affordable. This was why he was surprised to see the prices in South Korea.

He paid KRW3,900 for the same coffee drink he usually buys in Tim Hortons Canada stores for just C$1.83. This amount shows a big difference of C$2.14 for a drink alone, and looking at the menu, he saw that everything is way more expensive in the Korean outlets.

"I was hugely disappointed," Kim explained, as he was expecting rates similar to those in Canada. "If Tim Hortons in Canada sold their double-double and French Vanilla at the same prices as here in Seoul, I would have never gone there and neither would local patrons there."

Controversial Local Pricing

Korea's SBS Business reported that Tim Hortons has gained popularity in Canada for being cheaper than others, although serving the same premium items. But in South Korea, it already drew flak a few weeks after opening its first store due to the discovery of a significant price difference. This led to the allegations that the coffee house was overcharging local customers in Korea.

In response to the criticisms, BKR, the local food franchise operator of Tim Hortons, explained, "We made the decision (pricing) after comprehensively reviewing the economy, market, needs, and operating costs of each country. However, even taking into account the fact that it is an overseas brand, the general reaction is that it is difficult to understand the (price) difference of almost 2 times."

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