You should have known McDonald's Corporation (NYSE: MCD) wouldn't take Starbucks Corporation's (NASDAQ: SBUX) movement into its territory -- with its three-dollar versions of Sausage & Egg McMuffins, its doughnuts, its real estate wheeling-and-dealing not seen in McDonaldland since the 80s -- sitting down. No, McDonald's is sending the big guns through the drive-through, and they're coming out with coffee.This isn't just any coffee. It's "premium," far better-tasting and richer than McDonald's coffee was until a few years ago. Many say, even better than Starbucks' own high-priced drip offering. Now I'm getting ads for McDonald's iced coffee (in mocha, vanilla, and "regular" flavors) with my Big Mac -- it's a test, along with espressos and lattes, that the company might expand to the rest of the U.S. soon. McDonald's is testing a "McCafe" concept with baristas, flavored coffees and biscotti.
Not only is the coffee getting better, but McDonald's is subtly beating Starbucks at its own game by providing superior customer service along with the chain's trademark speed -- you pick up your coffee at McD's drive through window already sweetened and creamed. As a friend said, "friggin convenient when you're late for your flight!"
McDonald's USA President Don Thompson said it best: "You can't get much better profit than adding water to beans." Starbucks has thrived and grown in the past decade with just that secret, and suddenly, it's not such a competitive advantage. As McDonald's is proving, anyone can make coffee a little bit better, and if you have a big enough brand, maybe you can just convince the world to try your attempt. Round three may just go to the Golden Arches.
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Reader Comments (Page 1 of 5)
3-29-2007 @ 1:04PM
bubba said...
I tried McCoffee and I can tell you that don't hold a candle to Starbucks........
3-29-2007 @ 5:40PM
Dr Stan E. said...
Starbucks coffee is O. K. but overpriced. McDonald's coffee, in my opinion, is better and presented much more pleasantly. I am leaving Starbucks as of now for McDonalds.
4-02-2007 @ 6:24AM
peltonmj said...
When Mc Donalds takes the trans fats out of their fries then I will try their coffee. As of now I'm still boycotting.
4-02-2007 @ 6:34AM
Julie Newman said...
Starbucks is way overpriced.I love McDonalds coffee,So why pay the big bucks when you can get the same thing a lot cheaper?
4-02-2007 @ 6:43AM
Julie Newman said...
Starbucks is way overpriced.I love McDonalds coffee,So why pay the big bucks when you can get the same thing a lot cheaper?
4-02-2007 @ 6:52AM
Kirt said...
"Charbucks" coffee is bitter. McDonalds coffee is ok. At least at Mcdonald's you dont have to leave a tip, both places have lack luster service and neither deserve tipping.
4-02-2007 @ 6:53AM
Grandma Moses said...
Hey why the big fuss? The best coffee is McDonalds by far and I can afford to go there once in awhile on my small retirement money.My daughter took me to Starbucks once I can't understand who would rather go there and pay the high prices when McDonalds has the same thing for a lot less.
4-02-2007 @ 7:02AM
Rich said...
Despite what others may state about this, McDonalds coffee is more of a workman's coffee, much like Dunkin Donuts, where Starbucks is more of a lifestyle. I cannot find the social similarites between McDonalds(Fast Food) and Starbucks(Coffee Shop) where I would place the two in any reasonable level of legitimate competition.
4-02-2007 @ 7:17AM
steve said...
Starbucks, Starbucks, Starbucks: Do I need to say anymore
4-02-2007 @ 7:18AM
avonite said...
Who drinks coffee?
4-02-2007 @ 7:34AM
TheWallStreetChef said...
Finally, Starbucks has competition in this niche of the market....While Starbucks roasts their beans to an almost BURNT stage...the others, Dunkin Brands and Mikey D's uses more of an "Anglo"....Also Mikey D's is going after both Starbucks and Dunkin Donuts-which is a cross section of thier current demographics!
4-02-2007 @ 7:48AM
Dwight Kreick said...
Now, let me understand this.......Am I correct in assuming that you are going to see yourself driving to McDonalds in your imported car, wearing designer clothing, and sit on their patio sipping a latte.......to be seen by whom? Starbucks for some reason has grasped the Yuppy appeal, and McDonalds, no matter how good their coffee is, is going to have to wrestle that one away from Starbucks!
4-02-2007 @ 7:58AM
bruce said...
at 63 cents for senior small great coffee..WOW
I can now afford gas for my MB and coffee too.
4-02-2007 @ 8:05AM
William LAMB said...
I've tried them all.McDonalds Coffee is the best, Starbucks is just a fad and not real good tasting coffee
4-02-2007 @ 8:23AM
Ron Karge said...
I only buy coffee at Mac's which is always the same, THE BEST, Plus refillable! The same folks, who moan about $3.00 gas, spend $4.50 for Starbucks's! I get a better cup of JOE, and save enough to buy a gallon of gas, so I can drive thru!
4-02-2007 @ 8:27AM
Robert Williams said...
I guess that I am in the minority but I used to love McDonald's coffee before they started to mimic Starbucks with their heavy roast. Now I order water or milk as I think that the stuff now tastes like used motor oil.
4-02-2007 @ 8:36AM
Jason said...
$tarbucks is an experience....different crowd. Mickey D's.......Kids & Klowns. Enjoy!
4-02-2007 @ 8:36AM
suresh said...
hey hey. there is enough for everyone.and every taste bud. so enjoy. you day laborer gat oin line at the gollden arch. u in your beamer have a seat at the window at bux and get on ur wireless computor and surf porn. hee hee
4-02-2007 @ 8:42AM
vince said...
you are right,,MacDonld's coffee is beter and cheaper...and no vente and other names...just better and cheaper...bye bye starbuck...to the stars alice or shall we say starbucks
4-02-2007 @ 9:06AM
vince said...
Your comments: you are right,,MacDonld's coffee is better and cheaper...and no vente
and other names...just better and cheaper...bye bye starbucks...to the
stars alice or shall we say starbucks!