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Description: Last year 3G Capital Partners LP of Brazil purchased Canadian coffee giant Tim Horton’s. It’s perhaps a sign of 3G’s famous cost-cutting behaviour that some Tim’s outlets are doing away with the  classic porcelain coffee mugs in favour of an all paper cup regime. It’s unlikely that all patrons will be happy with this move to replace reusable dishes. Nonetheless, Tim’s is thanking its  “valued guests” for “joining our efforts to reduce water usage and improve our recycling program.”

Source: Globeandmail.com

Date: November 15, 2015

Link: http://www.theglobeandmail.com/report-on-business/tim-hortons-cost-cutting-efforts-could-dispose-of-porcelain-mugs/article27265968/

Discussion Points:

1) Are you a fan of Tim’s coffee? If so, do you prefer porcelain to paper or vice-versa?

2) What would be some of the relevant costs in comparing the paper cups to porcelain mugs?

3) What impact do you think the recent Marketplace television program that revealed recycling problems at both Tim Horton’s and Starbucks may have had on this decision by Tim’s to go all-in on paper cups? See the following url for the Marketplace story: http://www.cbc.ca/marketplace/episodes/2015-2016/coffee-cups

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