McDonald’s and Starbucks are two of the most successful and iconic consumer brands in the world. In recent weeks, I’ve received several new coupons for McDonald’s new McCafe lattes and mochas through it’s big marketing push for the new drinks. Starbucks (who has been struggling lately after years of out-performance) must be concerned about its new-found competition.
I came upon this piece on Pierce Mattie PR‘s website (note: I am not affiliated with them in any respect), and thought they asked an interesting question:
Will this new campaign help McDonald’s become the coffee brand of choice?
Here’s what I think:
McCafe will not replace Starbucks. The consumers who are seeking the ambiance and the customization that Starbucks offers will not flock en mass to McCafes. McDonald’s, to me, appears “transactional.” People pull up to the drive-through and get a Big Mac and a diet coke, or stop by before work to grab a new latte. Despite the happy characterization of Mickey D’s commercials, few people I know would suggest that as a spot for an after-date drink or a catch-up session with girlfriends.
Starbucks, on the other hand, focuses on the “experiential”. At its best, the coffee giant truly represents the “third space” between home and work where a customer can chat with the barista, order a drink to his specification, then settle in for conversation, socializing, and relaxation. Before he leaves the store, he might pick up a CD or a Starbucks coffee mug
If McDonald’s can woo the consumers who go to Starbucks four times a week and convince them to frequent McCafe twice instead, it will have achieved great success. These consumers are likely to be more interested in a transactional experience even at Starbucks (i.e. the quick morning coffee vs. the drawn-out coffee date or after-work snack).
McDonald’s chose a very opportune moment to push the McCafe concept – in the recession all consumers are looking for a better value-proposition, and McDonalds seeks to deliver that with a lower (than specialty coffee) price point but a higher (than perceived McDonald’s coffee) quality. Before the recession, an office worker may have bought a $4 frappacino before her morning meeting. Now, with a tighter budget, she may instead grab a $2 McCafe latte.
I’m not sure if the McCafe concept as a stand-alone store will catch on – I’ve visited a McCafe, and while the space is nicer and more “coffeehouse-like” than a regular McDonald’s, it’s still a far cry from the styling and the comfort of a Starbucks. I’m very excited to hear that McCafe will be coming out with new drinks over the upcoming months. More coffee drinks are always good in my book!
What do you think? What are your experiences with McCafe drinks, and would you forgo Starbucks for McCafe instead?
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{ 18 comments… read them below or add one }
I’ll agree. I still adore my Starbucks. That said, I pull through the McD’s drive through on the way to work. BUT, on a Saturday or Sunday? I’ll walk to the ‘bucks. Totally different experience.
My first experience of a McCafe was in Buenos Aires last year. If you’ve ever been, you’ll know they embrace their historical cafes and ambiance. The only reason I went to McDonald’s was that the concept of take-out coffee doesn’t exist in too many places outside of the US, so McDonalds it was. There is just one Starbucks in B.A. – considered a sign of their resistance to changing their cafe culture.
The McCafe was the front 1/3 of a McDonalds, off to the side in a large alcove, and definitely looked wayyyy more like a cute cafe than the fast food joint beyond. The one thing that would have made it completely Starbucks-like in its appeal: a wall (even it if was glass) fully separating it from the rest of McDonalds. If I remember correctly, it just had a railing around it.
No. I haven’t had any McCafe products, but I associate McDonald’s with poor quality and they’ll have to do better than a few cheesy ads and an attempt at a cafe space to change my perception.
And to tell the truth, even if it’s half the price, I also think of fancy coffee drinks as an expensive luxury, one that I wouldn’t indulge in if I didn’t have time to sit down and enjoy it. If I’m really on the go, I’d rather drink my coffee black (and cheap).
McDonalds new coffee line is pretty tasty. But I’ll take the Bucks anyday over it.
I’ve been to a McCafe in Singapore, and it was nothing special. Except for the name, I wouldn’t have guessed it was associated with McDonald’s.
I’m a Starbucks girl and will continue to go there!
I think McCafe is a lot stronger than my usual Starbucks. I go to McCafe if I need a caffiene kick that is affordable and pretty decent and I go to Starbucks to indulge.
If McCafe can rip off the green tea latte I’ll convert 100 percent!
What surprises me the most, is McCafe really isn’t that much cheaper than Starbucks. By no means is it half the price. (At least not down there in Texas.) Starbucks just has more options (and chai!)
I got a coupon for a free “McLatte” and oh. my. god. their iced mocha latte is AMAZING! i had forsaken sbucks a while now and gone to Dunkin Donuts instead, but McDonalds is now my fave hands down! The iced mocha is cheaper, too, at least in my neck of the woods, than the other two.
Does the McCafe have soy milk? I wasn’t sure and that’s one reason I’ve never tried them.
There’s a local place near my job that is cheaper than Starbucks and tastes better. If I’m not near them, though, I do love the Starbucks. I probably wouldn’t give those two up for McDonalds, even if they do have soy milk. The folks there just aren’t as friendly.
I’m not sure I would ever think of McDonald’s as my go-to for gourment coffee. However, this Southern girl who doesn’t live in the South anymore is beyond thrilled that they have sweet iced tea now, because it is impossible to find anywhere else here outside of Chick-Fil-A.
If you’re able to get over the preconceived notion of McDonald’s being pedestrian, McCafe’s are awesome. Some of the comments I would expect are the direct result of very good branding on Starbucks part and less than stellar McDonald’s advertising.
If you’re interested in the actual product, dismissing McCafe is silly. If you’re interested in the environment where you enjoy the product, actually going into the store and making a judgment is required. I’ve been to many Starbucks and there are differences amongst them. I’ve been to McCafe’s overseas and they’re pretty damned good too.
Good analysis. Starbucks is all about image and Mickey D’s is all about convenience. You hit that right on the head.
I don’t think McDonald’s is going to take over coffee either, BUT Starbucks should definitely step up their bargain game, just in case.
I haven’t had any McCafes, I’ve had McDonald’s iced coffee and it’s pretty good if you like sugared coffee (like I do).
I also HATE… let me say that again HATE the McCafe commercials.
I actually think most Starbucks drinks are terrible, not to mention overpriced.
I’d rather buy from McCafe, although the atmosphere leaves something to be desired.
I NEVER eat at McDonalds (not really safe for a vegetarian) but I got one of their McCafe drinks free with a coupon. It was EXACTLY like I had made at home the week before so I wouldn’t bother paying for it since I didn’t think it was that special, the only difference was that they put whipped cream on top. I’m also not sure it’s half the price. I thought it was only about a dollar more at Starbucks.
I buy coffee out, mostly with friends, once a week or less. Usually I go to local cafes, of which there are plenty in my area, or to Starbucks. I won’t be back to McDonalds again unless it’s free (I just found 3 more coupons on the back of a receipt).
I also get annoyed by the commercials, very annoyed. They’re supposedly a social commentary but I get annoyed and change the channel.
I wrote a final for one of my business classes last year about this very issue. I absolutely believe that McDonalds will never replace Starbucks. It caters to a completely different demographic. I wholeheartedly agree with jc and I am so irritated with the signs on the buses for McDonalds coffee. The atmosphere is entirely different. It is fine for those who enjoy McDonalds and are there already, but to compare itself with Starbucks, or Peets, coffee houses is just annoying.
Very good review and I totally agree. If I were meeting friends out to have coffee, I would meet them at Starbucks instead of going to McDonalds.
If I am grabbing coffee on the way to work, I’ll probably stop at McDonalds.
Nice info, useful for me… thanks a lot…
If your McCafe was in a big center with a movie theater, we might’ve been at the same one! For some reason, the McDonald’s overseas are much more upscale – I think McDonald’s brand project a different image in Buenos Aires or Beijing, than in the United States.