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Fast-Food Chains Up Stakes In Coffee Wars

Not to be outdone by Starbucks, three of the nation's largest fast-food eateries are increasing their stake in the coffee wars. McDonald's Corp., Burger King, and Dunkin' Donuts have all recently introduced new coffee products and are promoting them heavily in new marketing campaigns. But while the products may be similar, the three chains' approach to selling them is decidedly unlike that of Starbucks. Instead of going for the upscale audience Starbucks has targeted, the fast food outlets are taking a more "common man" approach. For example, at Burger King, the new entry is called the BK Joe coffee. BK customers "don't want it to be complicated, like a chai half-decaf whatever," said Denny Marie Post, the senior vice president for Burger King. "Our customer doesn't have that kind of money, frankly, and doesn't have that kind of profile. They just want it to be straightforward. This is not frou-frou coffee." So far, their efforts appear to be working. Since McDonald's began promoting its premium coffee several months ago, the company says, its coffee sales have increased at a double-digit rate. And it says that more customers are coming into its restaurants in response to the campaign. Burger King said sales of BK Joe, which comes in both regular and "turbo strength," have been steady.

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