McDonald's has been rolling out new "gourmet" coffee products in an attempt to steal market share from Starbucks. But so far, according to data from a handful of test markets, the fast food giant is
off to a slow start.
Specialty coffee sales in the company's test markets seem tepid-under 3% of sales per restaurant. Analysts take that as a bad sign, though McDonald's says
otherwise. "It is absolutely to our expectations and actually a little greater,"" said Don Thomspon, president of McDonald's USA.
Becoming a recognized purveyor of up-market coffee is
an important driver for McDonald's long-term growth and a way into a lucrative market dominated by Starbucks, say analysts and the restaurant. But it entails big risks for franchisees who must invest
tens of thousands of dollars to accommodate the beverage blitz.
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