Wednesday, January 09, 2008

McDonald’s is taking on Starbucks with their McCafe

They’ve been working out the kinks with this latest brand innovation overseas, and now the biggest change in McDonald’s product offerings in 30 years is coming to America!

According to the Wall Street Journal, “Starting this year, the company's nearly 14,000 U.S. locations will install coffee bars with "baristas" serving cappuccinos, lattes, mochas and the Frappe, similar to Starbucks' ice-blended Frappuccino.”

McDonald’s has apparently learned from Starbucks’ successes: “The program attempts to replicate the Starbucks experience in many ways -- starting with borrowing the barista moniker. Espresso machines will be displayed at the front counters, a big shift for a company that has always hidden its food assembly from customers. McDonald's says it wants customers to see the coffee beans being ground and baristas topping the mochas and Frappes with whipped cream.”

Do they smell blood in the water? “McDonald's is entering the sixth year of a successful turnaround, while Starbucks has begun struggling after years of strong earnings and stock growth.”

This is a risky move, though. “It could slow down operations and alienate customers who come to McDonald's for cheap, simple fare rather than theatrics. Franchisees say that many of their customers don't know what a latte is.”

From the horse's mouth...

1 comment:

Julian said...

I visited one in Italy while I was waiting for the train in Florence. It was a really nice little place very colorful and comfortable. the decoration was totally different to the restaurant, it was more mature and elegant.It was aside of the regular McDonalds counter, so it did not interrupt the flow of people going in for the fast food. And the most important thing, they had really good coffee and a nice presentation. I had a Cappuccino and they served it in a really nice and big cup.