McDonald’s Vs. Starbucks?

Is McDonald’s going after Starbucks?

According to a report earlier this week, McDonald’s will install coffee bars helmed by baristas in its 14,000 locations nationwide.

The move, already being tested in the Kansas City market, comes as Starbucks has significantly added to its food offerings, branching out from baked goods into sandwiches and other items. In fact, when visiting a New York City Starbucks the other night, we were taken aback by the number of choices offered. We almost thought that we had mistakenly entered a Panera Bread.

So will McDonald’s strategy work? The fast-food giant’s management reportedly sees it bringing in about $1 billion in revenue a year, and many people in the Northeast are Dunkin Donuts diehards because of that chain’s caffeinated drinks. The big question is whether or not the McDonald’s consumer is interested in higher-end coffee beverages. How do Big Macs go with lattes? We have no idea.

And what impact, if any, will this have on smaller chains, like Caribou Coffee and Peet’s Coffee & Tea?

Maybe a better question is how Starbucks will react. By selling burgers?


1 Response to “McDonald’s Vs. Starbucks?”

  1. 1 klemons June 16, 2008 at 5:44 pm

    I think it will take McDonald’s quite some time and a lot of marketing to even get close to Starbucks. Obviously since this post was from January and I didn’t know McDonald’s was planning anything of the sort. Starbucks is more than just a cup of coffee; it’s a lifestyle and a feeling. Nobody wants to whip out their lap top and take a conference call while junior is screaming down the slide and bouncing in the balls. They want 2008’s equivalent of a professional environment..

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