Can McDonald's Coffee challenge Starbucks Coffee?

What do you think of a brand that is not a coffee attribute and suddenly sells coffee? Most of the reaction was strange, why did he sell coffee? Can he ever sell Starbucks? Maybe we all think it's impossible, but in fact, the brand has made a move in the market. A brand that does not sell coffee, has launched a challenge to the core brand selling coffee, and has caused the other side to panic, this is McDonald's.

McDonald's is doing a good job in fast food. Why does he sell coffee? Tang, president of McDonald's USA. Thompson once explained, "in the past, we used to use drinks as appendages to dinner, but now we want someone to come to McDonald's to drink our coffee." "the speed of our service is first-class, the location is convenient, and the value we provide to our customers is unmatched by our competitors," he said. " This passage does not say why we want to sell coffee, but it shows us the great ambition of McDonald's.

McDonald's sells coffee sets and says it has become popular in the United States, making Starbucks restless. It is reported that now in the United States, a consumer wants a cup of white chocolate latte, not to Starbucks, but to McDonald's coffee bar. It is said that as early as March 2007, the US Consumer report reported that McDonald's espresso is more popular than Starbucks in both taste and value, which does not look good for Starbucks. But at least there is no danger for Starbucks to learn in the Chinese market.

Starbucks boss Schultz also admitted that although Starbucks has 87% of the US boutique coffee market, while McDonald's is less than 1%, he does feel the threat from McDonald's.

The threat comes from the taste of McDonald's coffee, okay? Or something else.

As we all know, McDonald's is an enterprise focusing on catering, and the core is fast food, which essentially changes people's original understanding of catering service, because it has machinery and equipment that can be mass-produced, changing the media of the industry and forming a new form of customer self-service. It doesn't matter now. In fact, its impact on the fast food industry is revolutionary. This is only the superficial performance of McDonald's. For the boss who controls McDonald's, the change of many media in the fast food industry is only a matter of excellence, while Zhuo is similar to the real estate rental industry. McDonald's headquarters basically does not specifically operate fast food business, but operates small bosses in a franchise way. What McDonald's headquarters does more is to figure out which area will be the most popular place in a city in the future. after the demonstration, it will buy the land it likes and build a fast food restaurant, then look for a franchise partner to rent the fast food restaurant to him. Collect franchise fees from partners and rents for this commercial boom. This is the other side of its commercial nature. Of course, there are many factors to study the success of McDonald's. No matter how many strategic ideas behind his success, one thing is clear: McDonald's does not sell coffee.

Why does McDonald's sell coffee?

Since McDonald's doesn't sell coffee, why does he sell coffee? According to the US market bulletin, about one in five Americans drinks coffee every day. According to the New York-based National Coffee Association, the market will grow by at least 4% a year between now and 2011. Coffee will become the most popular drink besides water, and coffee sales in the United States, including restaurants, coffee shops and other channels, will reach $29 billion, an increase of 50 per cent from 2006.

McDonald's has to be impressed by the size of the coffee market and the success of the taste of its coffee products, which is one of the reasons why McDonald's decided to fight a vigorous expansion war in the coffee beverage market to challenge Starbucks, the leader of the coffee chain.

From this point of view, McDonald's entry into the coffee market is really unable to withstand the temptation of market interests, and even does not hesitate to dilute its integrity in the category. People not only have to ask, what on earth does McDonald's want?

Starting from the trend of large market interests, it is understandable for ordinary businessmen to attack the service content that is not the core of the brand. After all, small businesses, based on the pursuit of profit, do not have a long-term mind, what do they do to make money? But McDonald's is different. How could he do such an irrational thing? Is that what he's going to do? The pursuit of profit is right, the pursuit of long-term profit is the core. Although coffee is not the core product of McDonald's, it can also be sold, so that McDonald's brand can play a greater market role and carry more products, and this product is in great demand. McDonald's can control production, why not launch this service in time.

In fact, McDonald's launched the so-called gourmet coffee in February 2006. in the beginning, McDonald's increased the supply of various coffee drinks and chicken pie sandwiches in its storefront. such as fresh milk coffee, chocolate coffee, foam coffee, espresso and fresh milk, but also added sweet tea, Farabee, smoody and bottled drinks and other products. So that McDonald's brand audience can find their favorite in a wide variety of coffee products and dairy drinks. At the same time, in terms of price, McDonald's drinks are about 50 cents lower than Starbucks, while quality is guaranteed. In McDonald's view, the guarantee of quality, the abundance of products and the right price are the best competitive weapons. It turns out that sales at a McDonald's franchise restaurant climbed 8.1% in one month, mainly due to the addition of coffee drinks and a hearty breakfast.