After striking out with its test of stand-alone McCafe coffee shops in the U.S. in 2001, McDonald's Corp. (NYSE:MCD) has taken the concept offshore, and apparently with growing success. This week, the Japanese branch of the family announced it will open 15 McCafe outlets in Tokyo and other cities, with plans to expand to other venues.Other McCafe sites in countries such as Australia and the United Kingdom offer a Starbucks Corp.-like (NASDAQ: SBUX) lineup of cappuccino, espresso and latte, along with baked goods and light meal items. The items are, in the McDonald's tradition, priced below its competitors.
I talked with Danya Proud, spokesperson for McDonald's Corp., about the possibility of such a program relaunching in the U.S. She told me that there are currently 19 test McCafes in the U.S., but they all are umbrellaed areas within McDonald's restaurants, not stand-alone locations. While the company recognizes coffee's growth potential, she said that its development of the product needs to fit within its core brand.
My conclusion? Look for more McCafe-type products on the McDonald's menu, but don't expect a spate of new, separate McCafes in this country.
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