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Smart Business Strategy

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To be honest, I’ve never been a fan of McDonalds until lately. “No”, I haven’t suddenly fallen in love with their hamburgers and fries. The draw for me has become their coffee. If you haven’t tried McDonalds coffee lately, I would highly recommend it. It certainly beats Tim Horton’s (to me their coffee tastes like dish water) and I even prefer it to Starbucks. As well, the cost of the McDonalds coffee is half of the price of a cup of Starbucks. Several years ago, McDonalds was losing market share and hundreds of locations were forced to close. But in the past 2 years, McDonalds has been surging in popularity and new locations are popping up. What’s changed? McDonalds has finally realized it’s not enough to appeal to the kids with “Happy Meals”. Parents are the ones paying the bills so McDonalds must cater to adult tastes too. McDonalds new premium coffee is most certainly a loss leader especially when they offer free coffee promotions. But by stealing customers away from the local Starbucks and other coffee venues, it has significantly increased its customer base. And while people are picking up their McD’s coffee, they are often ordering a Big Mac or Fries at the same time. This is SMART business! Although I’m not happy to see the small independent coffee cafés put out of business, the businesses that will thrive in this tough economy are the ones who are most responsive to customer needs and McDonalds has proven it’s willing to listen! Have you tried the new McDonalds coffee yet? I’m particularly fond of their lattes.

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4 comments

  • I agree. I think Starbucks day in the sun is over. They are too expensive!

    Karyn Climans on
  • I just received their promotional coupons in the mail today and didn’t even recognize at first that they were from McDonald’s! Very classy looking promotional materials. I love Starbucks but at almost $5.00 for a grande size chai latte I’m willing to look elsewhere!

    Kathryn on
  • Mmmmm! I haven’t tried one of their cold coffee confections yet. Another reason to visit McDonalds. It will be interesting to see how the other coffee boutiques including Starbucks responds in order to preserve their market share.

    Karyn Climans on
  • I’m going to head there and try one. When I took my boys to New York in the spring, I ordered one of the cold coffee confections every second day. Delicious. (We were doing so much walking, it was a guilt-free indulgence!)

    Pam @writewrds on

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