Practice Management

Forget The Practice Of Law, Forget The War In Iraq, Foreget The Presidential Race, And Let Us Concentrate On The Issue That Really Matters - The Coffee War!

By chucknewton

I am not a coffee drinker, so I guess I do not understand this.  Anyway, I am not the type (as are most Starbuck patrons) to give the company over a $1,000 a year of my hard earned money for something you can buy cheaply off the grocer store shelves.  But, now Starbucks  (or "Four Buck" as it is commonly known) has competition from the largest restaurant in the World - McDonald's.

According to Newsweek, wanting some of the Four Buck magic, three years ago McDonald's switch to a richer-flavored "premium roast" coffee, and consumers swallowing it up.  McDonald's coffee sales growth bubbled up into "the double digits," says Lisa Frick, director of McDonald's U.S. combined beverage business. McDonald's is now in the midst of a turnaround and is counting on high-margin lattes and cappuccinos to get regulars to spend more and attract new customers.  According to Frick, McDonald's mixed coffee drinks have profit margins that rival even its regular cup of drip, an appetizing prospect in a week when shares of McDonald's fell more than 7 percent on reports of slow December sales. The company is betting its new drinks, which will be priced lower than equivalent Starbucks offerings, will also drive between-meal traffic into McDonald's restaurants.

Of course do not count the second tier candidates out yet.  7-11 and Dunkin' Donuts are pursing their own coffee magic at the expense of Four Bucks.

And, what a pleasure it is, in some regards.  McDonald's just opened up a new restaurant in The Woodlands, where I live.  Coffee is dominant, and the restaurant is designed for adults, with a nice lounge and WiFi access.

Full post as published by Chuck Newton on January 13, 2008 (boomark / email).