will mccafe be the next starbucks?
TRANSCRIPT
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
American coffee lovers have made high end coffee shops like Starbucks successful.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
Along the way the price of a good cup of coffee has soared.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
Is there any hope for the cost conscious lover of healthy organic coffee?
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
There may be according to an article in Fortune.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
It turns out that McDonalds wants to be the next Starbucks!
http://buyorganiccoffee.org/1826/will-mccafe-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.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
The fast food company will reintroduce a newly branded McCafe, complete with upgraded $12,000 espresso machines, special deals for customers and a promise
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
to buy more sustainably sourced coffee, to make McDonald’s a go-to location for a caffeine boost.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
To draw customers away from its competitors, McDonald’s will highlight its price advantages over Starbucks
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
with offers including $1 drip coffee and $2 small specialty beverages over the first quarter of next year.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
If McDonald’s ends up providing comparable coffee to Starbucks and Dunkin’ Donuts it will be a threat to both.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
A new coffee chain needs to attract customers as it builds new stores.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
. McDonalds already has 14,157 outlets in the USA. Starbucks has 11,000 compared to 10,858 Dunkin’ Donuts.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
Coffee Shop Coffee and a Huge Customer Base
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
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.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
And McDonalds already has a huge client base already feeding 68 million people a day.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
By comparison Starbucks sells about 4 million cups of coffee a day.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
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.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
How about Image?
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
Every restaurant business has it image.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
McDonald’s, in order to keep growing, needs to modify its image and coffee is part of that.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
Additionally its coffee business currently brings in $4 billion a year.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
Guru Focus wonders if coffee can help McDonald’s improve its image.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
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.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
Things have picked up in the last 12 months, though, as same-store sales stayed positive.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
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.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
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.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
With a gigantic worldwide customer base McDonald’s has the capacity to attract many people up to better coffee
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
and steal gourmet coffee lovers who would not mind a little savings from the likes of Starbucks.
http://buyorganiccoffee.org/1826/will-mccafe-be-the-next-starbucks/
We will have to wait and see if McCafe will be the next Starbucks.