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Canadian coffee chain Tim Hortons opened its first outlet in Lahore, Pakistan this week just as its economic crisis took a turn for the worse.
Pakistan’s currency has lost more than a quarter of its value against the US dollar, and fuel prices have risen by almost a fifth, in less than a month.
The Pakistani government has also started implementing fiscal measures that are prerequisites to an International Monetary Fund bailout.
Toronto-based Restaurant Brands International (RBI), which owns Burger King and Popeyes, also owns Tim Hortons.
A small brewed coffee from Tim Hortons costs US$1.30, but a large flavored coffee costs twice as much. In contrast, the typical minimum salary set by the government is $94 per month.
Pakistan, which has a population of over 230 million people and an economy of $350 billion, is still a growth market for fast food businesses. Among the foreign companies with locations in Pakistan are McDonald's, Pizza Hut, and Gloria Jean's Coffee, owned by Yum Brands Inc.
Tim Hortons is set to open another two outlets in Lahore.
