Crain’s Chicago Business reports that McDonald’s plans to launch a “frontal assault” on Starbucks and “turn itself into a Starbucks-style destination for customers looking for something to drink,” offering lattes, cappuccinos and other specialty drinks at all of its 14,000 restaurants in the US.
McDonald’s management describes the move as a large growth opportunity, though there are a number of unknowns, most of which reportedly concern the company’s franchisees. “Costs will vary, depending on the size and configuration of each restaurant,” Crain’s writes. “Franchisees must buy equipment to make specialty coffees, and, eventually, smoothies, as well as wall-mounted refrigerators for bottled sodas and energy drinks, and would have to remodel the counter and drive-thru service areas to make room for the equipment.”
McDonald’s management describes the move as a large growth opportunity, though there are a number of unknowns, most of which reportedly concern the company’s franchisees. “Costs will vary, depending on the size and configuration of each restaurant,” Crain’s writes. “Franchisees must buy equipment to make specialty coffees, and, eventually, smoothies, as well as wall-mounted refrigerators for bottled sodas and energy drinks, and would have to remodel the counter and drive-thru service areas to make room for the equipment.”
- KC's View:
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This could make sense, though I cannot imagine under any circumstances choosing McDonald’s over Starbucks, no matter how Mickey D’s prices its coffees. That’s just me, though I suspect that a lot of people would agree.
The broader lesson, I think, is how competitive all these companies are in term of pursuing share of stomach. It’s a jungle out there…and whether supermarkets view it this way or not, I think they have to view themselves as being hip-deep in it.
