By

www.BuyOrganicCoffee.org
American coffee lovers have made high
end coffee shops like Starbucks
successful.
Along the way the price of a good cup
of coffee has soared.
Is there any hope for the cost
conscious lover of healthy organic
coffee?
There may be according to an article in
Fortune.
It turns out that McDonalds wants to be
the next Starbucks!
McDonald’s is challenging Starbucks
and Dunkin’ Donuts in the coffee
business as part of an effort to attract
more customers.
The fast food company will reintroduce
a newly branded McCafe, complete
with upgraded $12,000 espresso
machines, special deals for customers
and a promise
to buy more sustainably sourced
coffee, to make McDonald’s a go-to
location for a caffeine boost.
To draw customers away from its
competitors, McDonald’s will highlight
its price advantages over Starbucks
with offers including $1 drip coffee and
$2 small specialty beverages over the
first quarter of next year.
If McDonald’s ends up providing
comparable coffee to Starbucks and
Dunkin’ Donuts it will be a threat to
both.
A new coffee chain needs to attract
customers as it builds new stores.
. McDonalds already has 14,157 outlets
in the USA. Starbucks has 11,000
compared to 10,858 Dunkin’ Donuts.
Coffee Shop Coffee and a Huge
Customer Base
The threat to Starbucks is real. You can
drive up to many McDonalds to get
your coffee which is more often not the
case with Starbucks.
And McDonalds already has a huge
client base already feeding 68 million
people a day.
By comparison Starbucks sells about 4
million cups of coffee a day.
McDonalds can use cheap but good
coffee as a loss leader to bring in more
customers while Starbucks will only
lose money by discounting its coffee.
How about Image?
Every restaurant business has it image.
McDonald’s, in order to keep growing,
needs to modify its image and coffee is
part of that.
Additionally its coffee business
currently brings in $4 billion a year.
Guru Focus wonders if coffee can help
McDonald’s improve its image.
McDonald's is going through a huge
transformation process, moving toward
a franchise-heavy model as it faced a
huge slowdown in its growth trajectory.
Things have picked up in the last 12
months, though, as same-store sales
stayed positive.
Coffee is indeed a huge global market
and, considering the fast food chain’s
footprint of more than 36,000 stores
around the world, coffee could well turn
out to be a big revenue spinner for the
company.
The effort will take time to percolate
through to the top line, but a big push
can help effectively re-brand the unit.
Also under way is a major overhaul of
the entire chain with a focus on more
personalized service.
With a gigantic worldwide customer
base McDonald’s has the capacity to
attract many people up to better coffee
and steal gourmet coffee lovers who
would not mind a little savings from the
likes of Starbucks.
We will have to wait and see if McCafe
will be the next Starbucks.