Sunday, September 09, 2007

McD's Going to McCafe

Are you traveling overseas in the near future? You will soon be able to get your caffeine fix from McDonalds. The company is planning to open hundreds McCafe's serving gourmet coffees in an effort to expand its business globally. But don't count on seeing a McCafe in your neighborhood anytime soon.

"They're going to struggle in the U.S., but they have a great opportunity abroad," said Darren Tristano, exec VP at Technomic, a food-industry research and consulting firm. "Americans are used to spending small amounts at McDonalds, and getting a 99¢ double cheeseburger and kids' meals. McCafĂ© raises the bar. That's a sticking point. It's difficult to get Americans to spend more money because that's not part of their mind-set at McDonald's."

McDonald's is trying to gain momentum in the gourmet coffee arena. It competes against many other businesses such as Starbucks, Dunkin Donuts and Burger King vying for customers looking to wake up and eat. Now I must say that McDonalds has come a long way. In fact, McDonalds beat Starbucks in a taste test according to a post at Starbucks Gossip.

I do agree with the results to some extent. But you have to realize that Starbucks is not targeting the same consumers as McDonalds in all cases. Fortunately, I have experience with both companies products and services. McDonalds coffee is very bold and has a lot of aroma. Just add two creams, one sugar and I'm on my way! Additionally, I like its iced coffee selections. However, I give the edge to Starbucks in regards to expresso, latte's, mocha's and other specialty coffee selections.

Source: Ad Age

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