Question

(Coffee and other drinks are more expensive in Starbucks than in Tim Hortons) Are there any factors in the operations of Starbucks that contribute to this fact?

Please provide references for your suggested answer.

Answer 1

It can be said that coffee and other drinks in Starbucks are much more expensive than that of Tim Hortons. This may be because they serve unique and customized products to every customer as well as also serve large cups. This may be done to make the products look more premium. Another reason for the higher costs is due to the sudden rise of the operating costs in the company which thereby increases the cost of sales. So, because of this reason, Tim Hortons has products less expensive than that of Starbucks.

Hope this helps :)