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 5 of 5)
4-03-2007 @ 4:21AM
ron a trumble said...
I was surprised that you coffee at the Bay Area has improved wonderfully. when I went to BK last week cuz it was close to work BLAH! so Starbucks costy and yours are just good as it is. I would love to have your egg Mcmuffin muffin toasted which is one reason I stop ordering #3 cuz I want my muffin toasted not steamed.
4-03-2007 @ 4:21AM
ron a trumble said...
I was surprised that you coffee at the Bay Area has improved wonderfully. when I went to BK last week cuz it was close to work BLAH! so Starbucks costy and yours are just good as it is. I would love to have your egg Mcmuffin muffin toasted which is one reason I stop ordering #3 cuz I want my muffin toasted not steamed.
4-02-2007 @ 11:58PM
felicia said...
y is everyojne making a big deal. starbucks is bitter and way overprices, but if your craving for coffee and your near one than, ill get it. everyone is so concerned about staus, rather than quality. if you can save money and get something that tastes great does it matter, does it make someone wealthier just because they walk around with a starbuck plastic cup? people who like good things and save miney on the less expensive brands are the ones that have the money. most people who drink starbuck are jyst wannabes and are material rich and cash poor.
4-03-2007 @ 12:08AM
Stewart said...
McDonald's is for us who'd like a great cup of coffee hot or cold and still be able for the kids to have a good time too.
Starbucks and kids don't go together well. Remeber Starbucks doesn't support our troops (yes you can support our troops and not the war).
4-03-2007 @ 12:59AM
Tony300822 said...
Coffee is not a lifestyle or an experience. Anyone that says it is really needs to get a life. It's only coffee. I've never been to Starbucks and don't plan to go to one. I fix my Folger's at home or go to McDonald's when I'm away. Coffee is coffee. I don't need all the foam, fluff, flavor and lingo that goes with Starbucks. Just my coffee.
4-03-2007 @ 1:34AM
AC said...
Mc to sell coffee? Yeah ... right ...their coffee will smell like the dirty greasy French fries they serve. Their food sucks !
4-09-2007 @ 12:42AM
Robyn said...
as soon as starbucks adds a drive thru service they will be racking in the money hand over fist...The only reason I go to dunkin or mickey D's is so I don't havta drag my kids out of the car!!!
4-03-2007 @ 5:07AM
Mary said...
We all tried the McDonald's lattes and ice mochas in my family. They were equal to the gas station push a button lattee machine coffee, acutally worse! They were all TERRIBLE!!! I took about 3 sips of mine and tossed it. The other 2 people got iced mochas and drank half ending up with stomach aches that lasted all day long! We will NEVER get McDonald's Speciality Coffee again!!! They need to stick with what has made them what they are for breakfast... just regular coffee.
4-03-2007 @ 5:08AM
CHRIS P. said...
I agree, MCDEES is one great coffe and I like that strong brew. I also like starbucks, but for my money I will stay with MCDEES.
And let the yuppies waste there money on a so called brand name.....
4-03-2007 @ 5:57AM
mediapusher said...
Don't you just "love" biased propaganda reporting? As if having a McDonald's clerk that has stuck her/his hands in greasy fries before putting cream in your coffee is some kind of competitive advantage. Puhleeeez
I don't want someone putting cream in my coffee. Starbucks allows everyone to put their own cream in their coffee because the customer can adjust how much goes in the serving of coffee. Also, McDonald's only has one type of cream. Starbucks has nonfat milk, whole milk, lowfat milk and regular cream
4-03-2007 @ 8:36AM
JohnEWaddle said...
You are not eating trans fats with your Mickie D's coffee. For excellent coffee, served quickly at a very affordable price, go to McDonalds. If you want to look for a parking place, check out what your fellow Yuppies are wearing & spend two hours of your salary, go to StealYourBucks!
4-04-2007 @ 4:46PM
Dan said...
I like coffee in general. Starbucks is very good coffee. I, personally, like the Sumatra best. However I also enjoy McD's coffee and the new version is much better than the old.
If you find it too strong or bitter add a little hot water and thin it out. Ditto for the Starbucks, a little hot water really abates the bitterness.
5-17-2007 @ 3:21PM
theresa said...
I think the only reason starbucks tastes good enough to buy is all of the cream and flavoring they put in the expensive mixed coffe drinks. If you want your java for a reasonable price, and you get the regular coffee, you find out fast that the coffee they use isnt very good tasting at all. the good part of going there is the seats, lighting and music. the coffe is so-so. I like mcds better for just coffee; but if you want to sit and think or meet a friend its starbucks.
5-17-2007 @ 6:46PM
Miles August said...
The old "Automat" in NYC had them both beaten by miles, but given the choice, MacDonald's wins. Starbuck's doesn't even taste like coffee to me. It tastes like; I don't know..........Starbucks?