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Tim Hortons – Economic Impact of Privacy Violation - Coggle Diagram
Tim Hortons – Economic Impact of Privacy Violation
Data Privacy Violation Costs
Direct Financial Costs
Legal Fees
Law firms like Graydon LLP., Blakes & Cassels were paid fees.
Penalties
Fines by Canada’s Office of the Privacy Commissioner (OPC).
Insurance Premiums
Higher Premiums
Allianz Global Corporate & Specialty increase liability costs.
Indirect Financial Costs
Loss of Trust
Rewards program members and App users.
Consumer Attrition
Starbucks or Second Cup customers who switched.
Impact on Revenue and Market Share
Revenue Loss
Decline in Sales
Franchise owners in Alberta, Quebec and Ontario,
Less Engagement on the App
Privacy concerns deter users.
Market Share Loss
Competitors Gaining Ground
Starbucks, JJ Bean Coffee Roasters and McDonald’s McCafé,
Customer Migration
Transparent and ethical brands attract customers.
Data Protection and Security Costs
Investment in Technology
Privacy-by-Design Systems
Partnering with Palo Alto Networks cybersecurity firm.
Data Encryption Upgrades
Implementing solutions to protect customer data.
Ongoing Maintenance and Monitoring
Regular Audits
Deloitte Canada or PwC Canada.
IT Team Training
Compliance and new data security practices focus.
Consumer Spending & Sensitivity
Price Sensitivity
Cautious Spending
Among middle-income consumers in urban areas like Toronto and Montreal.
Transition to Value Deals
More affordable menu options being sought out.
Change in Preferences
Loyalty to Ethical Brands
Customers sticking to competitors and sustainable coffee brands like Salt Spring Coffee.
Digital Platforms Skepticism
Consumers showing reluctance to use the Tim Hortons app.