Coffee wars: Starbucks v McDonald’s

posted by John Lampard on Wednesday, 16 January, 2008 to the coffee subset

Coffee wars: Starbucks v McDonald’s.

While some consider Starbucks coffee “fast food coffee”, or worse still, the “McDonald’s of coffee”, it seems somewhat ironic that McDonald’s, as in the hamburger “restaurant”, is now shaping up as the next competitive threat to Starbucks.

Adding to Starbucks’ woes, and further emphasising its similarity with McDonald’s, the burger chain is about to launch a direct attack of its own. This year McDonald’s plans to add Starbucks-style coffee bars to nearly 14,000 of its American restaurants – the biggest diversification ever attempted by the company.

Despite the fact Starbucks appears to have been thriving, meaning it can open coffee shops virtually adjacent to each other for example, the company has endured a difficult 12 months. Earnings and share values have declined, and many feel the company has tried to expand too quickly.

Possibly Starbucks can look to its new foe, McDonald’s, for a solution though, as the hamburger chain was beset with similar difficulties several years ago.

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  • Is that like the McCafé they have over here?

    Bryce at 7:52 pm on Wednesday, 16 January, 2008
  • Could be. Apparently, and I wouldn’t mind verifying this, some years ago European Macca’s managers were travelling out to Australia to look at the McCafe system to see how they could adapt the idea in European McDonald’s restaurants.

    John at 8:32 pm on Wednesday, 16 January, 2008
  • It will be interesting to see how this all works out for McDonald’s. Personnaly, I would rather sit and savor my cup in a place where I catch the aromas of other coffee or pastries, than at a place where I am gagging at the smell of greasy, fried food..or worse yet, smelling like that all day!

    coffee beans at 10:18 pm on Wednesday, 16 January, 2008
  • In the McCafes I have seen here (in Australia) the cafe section tends to be separated from the fried food section. You even order and pay at a separate counter.

    Not that I go to either place, Macca’s or Starbucks, for coffee though – I much prefer the family owned coffee shops, where they make a real coffee :)

    John at 11:59 pm on Wednesday, 16 January, 2008