McDonald’s New Buzz: Specialty Coffee

Recently, McDonald’s unveiled plans to roll out McCafé—a premium line of coffee that
includes cappuccino, latte, and iced mocha. About 3,000 of its 14,000 restaurants have already
added the new McCafé line of drinks, but a recent downturn in the economy has made it
difficult for the remaining franchisees to secure funding for remodeling and other expenses
associated with the launch of specialty coffees.
The recession left some analysts questioning whether it was the right time for
McDonald’s to roll out its line of new specialty drinks. Regardless, why do you think McDonald’s
embarked on the program? If the economy rebounds and the remaining McDonald’s
restaurants launch the new line of McCafé drinks, do you think it will have a sustainable impact
on the company’s bottom line? Explain.
ANSWER:
McDonald’s embarked on the program as the introduction of its specialty coffee pleased
shareholders and giving customers an instant hit seeing that it was refreshing for uncertainty in
minds. New line of McCafé drinks have a sustainable impact on the company’s bottom line as it
creates right place for setting-up of its existing products and generate ubiquitous offerings for
customers. In a one spot with fast food and drinks all under one roof giving rise to customers
stickiness and loyalty at helm of low cost and accessibility.