Even the mighty and iconic QSR chain, Tim Hortons, was not immune to the COVID-19 virus. The coffee giant recorded a 4.9% decrease in system-wide sales during the initial three-month period of 2021. That's compared with the same quarter in 2020, which was down 9.9% versus 2019. Overall, on a two-year basis, Tim Hortons Canada was down 14%.
The Allegra World Coffee Portal did an analysis of coffee purchases at branded coffee shops across Canada, including Timmies, Starbucks, Country Style and independents (but not McDonald’s). From a peak of $12B in sales in 2019, there was a 22% drop in 2020, taking sales down to $9.5B.
According to Mintel, a global market intelligence agency, COVID negatively impacted Away-From-Home (AFH) coffee sales as a result of economic uncertainty combined with a dramatic decline in morning commutes. Outlets with drive-thrus fared better, but AFH consumption dropped overall.
Originally published in the September/October 2021 issue of Convenience Store News Canada.