It was only a matter of time before Canada’s coffee chains began adjusting prices. Article content

Tim Hortons was first out of the gate, announcing a price hike of roughly three

cents per cup on average — a modest but symbolically significant increase. Article content

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In an increasingly cashless economy, where digital payments obscure price sensitivity,

such adjustments are less likely to trigger consumer backlash. Still, this marks a new chapter in the economics of coffee, where perception and psychology play as

much a role as the price of beans.

Despite common belief, the cost of coffee beans represents less than 10 per cent of what consumers pay for a cup at their local café. The remainder is absorbed by labour,

rent, equipment and energy —

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