McDonald’s Pushes Coffee as Starbucks Expands Tea

While the global economy slows, one drink continues to pull strong sales — coffee. But it’s not just boutique cafés or third-wave shops seeing the boom. Even fast-food giants smell opportunity. With premium roasters and global chains jockeying for market share, the big question isn’t whether people want coffee — it’s who’s going to sell it to them, how, and at what price.

McDonald’s says coffee is its fastest-growing beverage globally, and it’s pushing harder: the chain now sells coffee in supermarkets, promotes seasonal drinks like pumpkin latte, and plans a white chocolate mocha. CEO Don Thompson called coffee a priority, while U.S. brand lead Kevin Newell revealed McDonald’s has less than 13% of the U.S. restaurant coffee market — a share it wants to grow.

Why McDonald’s Is Betting Big on Coffee

At the heart of McDonald’s coffee push is simple math: it sells well. According to U.S. brand chief Kevin Newell, McDonald’s currently holds under 13% of the coffee market within its own restaurants in the United States. That’s a gap the company is keen to close. Coffee is not just popular — it’s the fastest-growing drink in McDonald’s global beverage lineup, said CEO Don Thompson at an investor meeting.

McDonald’s is leveraging its core strength: low prices. Many locations sell any size coffee for just $1 USD. But the chain isn’t just playing the value game. This fall, it introduced a seasonal pumpkin latte similar to Starbucks’, and next week it plans to roll out a white chocolate mocha. These moves aim to attract customers looking for more than just a basic cup.

Supermarket Strategy and Brand Building

In another push to expand its coffee reach, McDonald’s announced a partnership with Kraft Foods in late October to sell McCafé-branded packaged coffee in supermarkets. The goal? Build brand awareness for McCafé outside its restaurants, with the hope that shoppers who buy bags at the store will also order fresh-brewed versions when visiting McDonald’s. Since launching McCafé in 2009, McDonald’s reports a 70% increase in overall coffee sales.

The packaged coffee push is part of a broader strategy to anchor the McCafé brand in everyday life. “This is designed to drive more brewed coffee sales in our restaurants,” said Newell. The supermarket line-up gives customers more touchpoints with the McCafé name, reinforcing its place not just as fast food, but as fast, affordable coffee.

Starbucks Shifts Focus to Tea as Rivals Circle

While McDonald’s goes all-in on coffee expansion, Starbucks is taking a different path. In October, the coffee giant opened its first Teavana tea bar in New York City. The move aims to replicate Starbucks’ coffee success in the tea category, with plans to open 1,000 such outlets within five years. Rather than doubling down on coffee amid slowing growth, Starbucks is diversifying its portfolio.

This strategic shift highlights how the competitive landscape is evolving. As McDonald’s leans into coffee with aggressive pricing and seasonal drinks, Starbucks is looking to tea as its next major growth channel. Both players are betting big — just on different cups.

Frequently Asked Questions

Why is McDonald’s focusing more on coffee sales?

McDonald’s reports that coffee is its fastest-growing beverage category globally, and CEO Don Thompson emphasized its importance at an investor meeting. With less than 13% of the U.S. restaurant coffee market, the chain sees room to grow and is using low pricing and seasonal drinks to capture more share.

What new coffee drinks is McDonald’s launching?

McDonald’s introduced a pumpkin latte this fall, similar to Starbucks’ seasonal offering, and plans to release a white chocolate mocha next week. These drinks target customers seeking premium, seasonal flavours in addition to regular coffee.

How is McDonald’s expanding coffee beyond its restaurants?

In October, McDonald’s partnered with Kraft Foods to sell McCafé-branded packaged coffee in supermarkets. This move aims to build brand recognition and encourage customers to buy McCafé at retail and then visit restaurants for fresh coffee.

Has McDonald’s coffee sales grown since introducing McCafé?

Yes. Since launching McCafé in 2009, McDonald’s says its overall coffee sales have increased by 70%, showing the brand’s significant impact on its beverage business.

What is Starbucks doing instead of focusing on coffee?

Starbucks opened its first Teavana tea bar in New York in October and plans to open 1,000 such locations in five years. Instead of expanding coffee further, Starbucks is shifting focus to tea as a new growth area.

Recommended FrontStreet Beans for Milk-Based Coffee Drinks

For coffee lovers exploring milk-based drinks similar to McDonald’s or McCafé offerings, try FrontStreet’s Specialty Blend, which delivers balanced sweetness with almond and walnut notes, along with milk chocolate tones for smooth lattes. The Brazil Queen Manor single origin highlights creamy textures and subtle nuttiness from its yellow bourbon beans, ideal for creating a sweet, smooth cup. Both beans showcase the kind of approachable, rich flavours that work well in everyday coffee — just like the ones driving McDonald’s coffee growth. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.