More competitors move to bring Starbucks-style gourmet coffee drinks to an even wider audience. McDonald's is testing the "McCafe concept" in Rochester in New York state, and five other national markets according the Rochester Democrat & Chronicle. Maybe they need to stop adding the Mcprefix to everything, but it would probably get called some form of McCoffee anyway.
Anyway, McD's is right to try and see if there's a piece of this market they can grab for themselves. Dunkin' Donuts is moving hard into the arena. When McDonald's sees a value in exploring this market, it shows that Schultz and Donald of Starbucks are not alone in believing that there's plenty of room to grow a gourmet coffee business right here in the States, not to mention internationally.
Michael Canfield is a private investor, a business and media writer, living in Seattle. He doesn't own stock in Starbucks (SBUX).
Last updated: February 10, 2010: 02:59 AM
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Reader Comments (Page 1 of 2)
8-19-2006 @ 10:08AM
Mr.noitall said...
Well, it's time for me to start bashing SBUX, again.
When McDonald's starts thinking about entering the gourmet coffee business, I would say that's a signal that the whole latte "fad" is ending. Now, I don't think the "McLatte" is going to cut into Starbuck's market too much. SBUX biggest problems will arrive when it no longer becomes "cool" to be seen trotting around with a $4 cup of coffe in your hand,lol.
11-07-2006 @ 2:13PM
D Cook said...
Just tried McCafe all over Australia - it was wonderful - bring it on - so skeptical when we entered the first one but they won us over - great quality!!
11-07-2006 @ 3:20PM
LR said...
McDonald's coffee is THE BEST!! So much better than Starbucks who is SO over-rated!!
11-08-2006 @ 11:50AM
Rube Lloyd said...
I tried Starbucks coffee..yuck. Tastes like someone boiled their athletic socks. McDonalds,when it was Maxwell house coffee...was the best anywhere...if they change it to anything like Starbucks..they can keep it.
11-07-2006 @ 3:39PM
Pam said...
I tried an iced latte' at a McDonald's in the Rochester area when I was there last month. It was very good, and didn't break the budget! I was disappointed when I got back home to the Albany area & they didn't know what I was talking about. Oh well, I still like their iced coffee.
11-07-2006 @ 4:53PM
Spike Vrusho said...
McDonald's new coffee is great tasting and at the Senior Citizen's special half price rate, it is a marvelous bargain.
11-07-2006 @ 6:09PM
Barbara Grider said...
McDonalds coffee is so bad that even with the senior discount we go elsewhere.
11-07-2006 @ 8:13PM
Myra Goodwin said...
When i saw that some people liked Mcdonalds new coffee, i almost choked, all my senior friends and myself hate it! the Decaf is barely acceptible! I personally got sick from the regular, and we all like the Senior discount! The best coffee i know of is mostly on the east coast at Dunkin Donuts! i found on in Arizona recently!
11-07-2006 @ 6:45PM
Barb said...
I have become HOOKED on McDonalds decaf coffee!! It is the best cup of decaf coffee that I have EVER had! I stop by EVERY morning to purchase one, somethimes two cup to go!
The only thing I do not like is the "LET US ADD THE CREAM AND SUGAR". I have had employee's argue with me when I tell them no, that I would like to do that myself! I let them try once only to have them add regular sugar (asked for splenda) and not enough cream. I prefer to do this myself.
So McDonald's, if you read the comments, please tell your employee's to listen to the customer. Also I have been at some McDonald's that are now taking the cream off the counter and you have to ask for the number you want only to get a dirty look if you ask for more than 2. This will be the thing to drive me away! If it comes to that I will be trying Dunkin Donuts!!
11-07-2006 @ 6:53PM
pinkangel said...
I am a manager at a mcdonalds, and I understand about doing it yourself. However Mcdonalds wants more interaction with the customers by "customizing" the coffee. Some customers like and some don't.
11-07-2006 @ 7:53PM
Cathann said...
McDonald's had the Best coffee and decaf in the country until they switched to the Special brew they are now serving so they aren't on my regular route anymore Cath
11-07-2006 @ 7:37PM
Marilyn Ross said...
Hi:
I love your new premium roast coffee!!!! Is there any chance that you would sell it by the pound??? I stop and get a cup very often.
Thank you for the improvement
11-07-2006 @ 10:10PM
Jim said...
I also LOVE MacDonald's coffee. When will we be able to buy it by the pound for home?
11-08-2006 @ 10:32AM
Todd said...
Just to set the record straight, a cup of coffee at Starbucks starts at $1.60. Granted, this is a bit more than Dunkin, but Starbucks customers don't have to endure the smell of donuts (or, in the case of McDonalds, burgers and fries). As Dunkin proved in their own market research, Starbucks and Dunkin appeal to separate demographics. Starbucks customers tend to prefer a stronger, more exotic blend of coffee, and they also prefer the cozier atmosphere.
11-09-2006 @ 7:45AM
Charles King said...
McDoanlds cut their coffee quality 8 years ago in a quest for saving $$. Now they want everyone to belive they are committed to quality?! The facts is that neither Charbucks or Dunkin have it right, either. The people that have done the best job for providing enjoyable coffee are SOME national convenience store chains, but Continental Airlines seems to have won the award with their new brew that outdid a popular retail brand. Novel idea: choosing QUALITY over a brand name.
11-09-2006 @ 7:42AM
Keith Johnson said...
Starbucks, a regional phenomenon is in the people business while Dunkin is in the donut business and McDonald's is in the burger business. When will we have a TRUE commitment to just offering good coffee and CHOICES. Personally, we create award-winning blends that blow McDonalds away (not hard to do) and Dunkin Donuts coffee is not even a blend....rather it is a light roasted mix of okay coffee.Starbucks sells more MILK than coffee and is more interested in selling non-coffee items. By the way, ever tried to have a choice of more than 3 or 4 coffees at either place? TOO MUCH PRESS ABOUT COFFEE FOR COMPANIES THAT ARE NOT COMMITTED TO QUALITY COFFEE.
11-10-2006 @ 11:13PM
Brenda said...
Starbucks coffee does not win any nationwide trade recognition. One coffee that does is Lacas brand which sells to diners in NJ/NY. It is divine. You can buy cups and lids at the grocery store and brew your own before you leave for work.
Dunkin does have excellent coffee, if the store manager doesn't skimp. My problem with Dunkin has been that the donuts are no longer made on the premises and there is no longer any variety (also no aroma of donuts !) It seems like every store just orders the best sellers. Oh, well, money, money, money!
McDonalds used to have excellent coffee, but the new blend tastes like they are using recycled Folgers. I don't mind if other people want to drink that, but I wish they would bring back their original formula.
11-11-2006 @ 12:51AM
Richard Sinkin said...
I'm a coffee drinker big time so I know whats good. Starbucks is terrible way too bitter and strong. McDonalds and Dunken Dougnuts are good. The best is Tim Hortons of Canada great coffee.
11-11-2006 @ 4:34AM
JEFFREY L BIEHL said...
STARBUCKS HAS AGOOD CUP OF COFFEE, BUT THE PRICES OUR WAY TOO MUCH 3-4 DOLLARS FOR A CUP OF COFFEE COMON THATS A TOTAL RIPOFF, NOW DUNKIN DONUTS NOW THERE'S A GOOD CUP OF COFFEE AND IT DOSENT COST A ARM AND LEG YOU CAN GET A LARGE CUP FOR ABOUT 2.25 DEPENDING WHERE YOU LIVE DUNKIN YOU ROCK KEEP EXPANDING AND PUT XBUCKS OUT OF BUSINESS.
11-13-2006 @ 8:21AM
cindy berwanger said...
I grew up in cincinnati and there is only one place to go for a great consist cup of java and that is no other than White Castle the home of the sliders.