Burger giant McDonald’s has the lucrative upscale coffee market dominated by Starbucks clearly in its sights. According to an AP report, McDonald’s Eyes Ballooning Coffee Market,
After the success of its upgraded drip coffee – which even managed to snag a thumbs-up from testers at Consumer Reports earlier this year – the fast food chain known for super-size meals is gearing up for a massive expansion into the world of lattes.
“We want to move from beverages as an accompaniment to being a beverage destination,” Don Thompson, president of McDonald’s USA, said in a meeting with analysts Tuesday. “Our speed, our convenience, the value that we can afford to customers without quality comprise [sic] will make us a formidable player.”
Restaurants will offer lattes, mochas, cappuccinos and espressos with a choice of different flavorings and milk. Industry watchers say the drinks cost about 50 cents less than at Starbucks.
Starbucks, meanwhile, is already feeling a bit woozy after its stock hit a 52 week low, as detailed by Chicago Tribune writer Mike Hughlett in New pressures grind at Starbucks). The picture isn’t entirely hopeless for Starbucks, though – neuromarketing research may hold the key to staving off the McDonald’s challenge. […]