The Great Coffee War of 2009: McDonald's prepares to trash Starbucks
Filed under: Company News
McDonald's (MCD) has launched a $100 million assault on the boutique coffee industry, a media blitz pushing its McCafe brand as an alternative to offerings of the Starbucks (SBUX) franchise. It if has its way, you will leave the green-and-black and never look back. But Starbucks and others hoping to grab or maintain market share are not going down without a fight.
Six months ago, when I last had a McDonald's latte, it bore the same resemblance to coffee that grape Kool-aid does to Chateau LaTour. The gloppy, overly sweet sludge tasted like an instant mix. That has changed. Now the lattes are made in an automated machine that makes espresso on command, heats milk and dispenses both in the proper proportions at the push of a button. The one I tried yesterday was surprisingly palatable. In fact, it was better than the one I bought from SBUX for my own scientific comparison. It also cost less, $2.39 vs. $2.80.
Not to be outdone, Dunkin' Donuts has also announced it is dropping the price of its lattes by 15 percent in the New York City market, undercutting even McDonald's with a sub-$2.00 small size.
Do I see a price war in the offing? Fire the first bean salvo, and may the best cup win.
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Reader Comments (Page 1 of 3)
5-06-2009 @ 6:13PM
ILENE said...
I had a vanilla capuccino yesterday at McD- it was delightfully good!!!
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5-07-2009 @ 1:47AM
Cindy Savastano said...
I went to MD to get 12 hot chocolates for my son's baseball team and because the hot chocolate is now made from the darn espresso machine it took 20 minutes to squirt the chocolate syrup flavor into the empty cup, wait for the milk to heat up and fill the cup, manually mix the syrup into the milk only to find that more than 1/2 of the contents of the cup were milk foam- all for the price of $1.99 +tax for a small cup! I asked for the attendant to please at least fill the cups. When I gave the children the hot chocolate, they said they tasted funny... kind of like coffee. I went to MD thinking it would be cheaper and faster than Starbucks ($1.19 for a child sized Hot Cocoa), boy was I WRONG!!!
5-06-2009 @ 6:28PM
Joe said...
All I want is a great cup of coffee. All this flavoored crap is just that. My God, our society has gone crazy with all the gimmicks in the world. Maxwell House had a GREAT Columbian Decaf and they stopped selling it??? Duh!!! But then again, It probably wasn't selling. So, all my family and friends who are coffee drinkers now drink different brands trying to find that great cup of coffee. So sad.
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5-06-2009 @ 9:11PM
Mary Lou said...
I know what you mean, I just want my iced coffee and I'll shut up, don't care if it's from starbucks, McDonalds, or Europe !!!! I just want Iced coffe
5-06-2009 @ 10:52PM
TOM said...
i want to have a cure for Alzheimers disease, so you and your coffee can......, oops! i can't say that the internet police are behind me!
5-06-2009 @ 6:36PM
CarolNevada said...
I haven't tried MdDonald's coffee yet, but I love seeing capitalism at work as it should be. The various companies all working hard to gain a customer's business. Do you want government made coffee?? That will be next after the car industry, the banks and health care.
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5-06-2009 @ 6:52PM
bob said...
Starbucks is not worth the price. Their coffee tastes bad and many less expensive brands are better,i.e. Seven Eleven has better coffee for a buck!
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5-06-2009 @ 7:06PM
atleka2 said...
I guess it depends on who make the McDonald's new coffee.I tried them the coffee taste burned.They can't give it away where I live. I don't buy Starbucks that often. But they do not have anything to worry about. McDonalds has to step it up or count the new coffee as a loss! Circle K coffee taste better than McDonalds!
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5-06-2009 @ 7:16PM
Paul said...
100 million dollar assault...but they forgot the most important thing to make it work, wonder how much that part would be worth to them???
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5-06-2009 @ 7:16PM
J B said...
Dunkin Donuts has by far the best regular roast, whole bean coffee, and all for around $8.00/lb. Sometimes hard to find on the West Coast, but usually found at Target in the 12oz size!
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5-06-2009 @ 8:36PM
CONNI said...
HI JB-
YOU CAN ALWAYS ORDER A "FULL" LB OF COFFEE AT DUNKINDONUTS.COM DON'T BE FOOLED BY SUPERMARKETS THEY ONLY SELL 12OZ.
5-06-2009 @ 7:35PM
Carole said...
McD's coffee is wonderful. I really do like it much better than D&D and SBUX. I would never have though so, but the rest now taste like ciggarette ashes and MC'D is smooth.
I wish we could buy McD's coffee for home use..
HINT HINT..
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5-06-2009 @ 7:36PM
luddite00 said...
I was one of the special effects riggers for the first televised commercial campaign of this product. They are serious about competing in the coffee market. It is a decent drink at a decent price.
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5-06-2009 @ 7:52PM
brian said...
Why should i pay for the over priced "coffee" that all these places have, if i don't bring my own i will stop at a gas station or dunkin doughnuts and save money, let alone get a great tasting COFFEE, all this flavored crap or over priced burnt coffee(that would be starbucks) makes me want to jump off a bridge.
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5-06-2009 @ 7:58PM
jcdinform said...
If you do go out to eat in a Restaurant, Don't forget to ask yourself if any of the meals you eat contain Fructose corn syrup and Please read food labels carefully, Mercury contamination has been found in Fructose Corn Syrup,...http://www.youtube.com/watch?v=sQQljmDfySQ
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5-06-2009 @ 8:05PM
starbucks stinks said...
i went to starbucks, and ordered a frappucino. i also wanted a couple things from their menu. when i asked for one item they informed me they didnt have it. i was like well why is it on your menu then? i proceeded to ask them if that was the case, since they have such a small amount of things they serve besides coffee, what was it they had and i would base my decision on that. they told me they pretty much had everything else. i proceeded to order a new piadini, and they said oh we dont have those either. ill tell you why in my experience starbucks sucks. they suck because they are arrogant. i proceeded to drive away from the drive thru at the starbucks i was at and went to mcdonalds. at least at mcdonalds i know they will have what i order when i order it. i hope all starbucks close they wont be getting my business anymore. besides your coffee is not that great.
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5-06-2009 @ 9:37PM
rosie said...
mcdonalds will never beat out starbucks, im sorry.
it's a status symbol
you really think a ceo or a fashion model or a celebrity is going to run to a cheap fast food restaurant for their coffee? no. same reason they dont go to walmart for their clothing.
come on people
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5-07-2009 @ 8:50AM
april said...
I have tried McD's coffee and there is no comparison to Starbucks in my book. The McD's coffee I tried was very strong and left an awefull taste in my mouth. I will always be a STARBUCKS fan!!! So even if McD tries to run out Starbucks I will find another coffee shop to go to. But look again. Who has been around longer on serving gourmet coffee's. If I remeber right McD just started to do it in my state about 1-1 1/2 yrs ago.. I say GO STARBUCKS and good by McD's gourmet coffee.
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5-07-2009 @ 12:48AM
Debbie said...
I agree with you, Starbucks is the best and no way McD's will do better than starbucks.I will pay the 1.50 more and know i will have great iced coffee every time.
5-06-2009 @ 9:51PM
cdbeauc said...
There is a lot of room for all brands of Coffee. Me and the Wife have had a pot of Folgers almost everyday of our 30yr marriage, but its not the only brand we drink I have a couple of other brands on hand. I must keep it to small quantity's for it does not age well. Starbucks, Dunkin Dounts, and McD's all have good coffee just different in taste and you must choose your favorite ones and enjoy. I like a certain wine but I hope I don't have to always drink the same one. Beer, I like a certain brand but do like to taste others. Its a great beverage and I for one say bring me more to choose from. .
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