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Default McDonald's coffee bars to take on Starbucks

Discussion in 'Mess Hall' started by godoftrading, Jan 7, 2008.

  1. godoftrading

    godoftrading Private, 1st Class

    Jan 4, 2008
    Likes Received:
    I hope MCD sells a great tasing cappuccino and latte for half the price starbucks is selling theirs for.......SBUX to the single digits....

    McDonald's coffee bars to take on Starbucks: report
    Monday January 7, 9:29 am ET

    NEW YORK (Reuters) - McDonald's Corp (NYSE:MCD - News) is set to launch coffee bars with "baristas" serving cappuccinos and lattes, moving into direct competition with global coffee chain Starbucks Corp. (NasdaqGS:SBUX - News), The Wall Street Journal reported on Monday.

    McDonald's will install coffee bars at its 14,000 U.S. stores, incorporating theatrics similar to Starbucks' counters, displaying espresso machines and having baristas prepare drinks, the report said.

    The report, citing internal documents from 2007, said the move will add $1 billion to McDonald's annual sales of $21.6 billion. McDonald's will also sell smoothies and bottled beverages, it said.

    A McDonald's representative was not immediately available for comment.

    Competition between the two companies has already been brewing, with McDonald's expanding its coffee offerings. Specialty coffee, along with breakfast items and lower-cost offerings have helped McDonald's outperform most other U.S. restaurant companies this year.

    Starbucks, on the other hand, has been tempering its previous message that its perpetual expansion was resistant to blips in the U.S. economy. It has said that it plans to open 2,500 stores in fiscal 2008, down from a previous target of 2,600.
  2. Pharaoh

    Pharaoh Colonel

    Oct 3, 2007
    Likes Received:
    I wonder if a McD's cappuccino will be hot enough to dump in my lap and sue them over. :D

    And after all the theatrics, the barista will say,
    "Would you like fries with that?"

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