New McDonalds McCafe concept...

by **BizLoanz4u** » Wed Jul 23, 2008 3:18 pm

Has anyone experienced the new coffee concept at McDonalds yet? (Doesn't seem to be in my town in NJ yet). If you have; what do you think about it? (see info below)

Americans soon will be able to order a latte with their side of fries at McDonald's restaurants, as the fast food chain initiates coffee bar buildouts at most of its sites around the country. A spokeswoman for the chain's Southwest region said select restaurants in the region will get McCafé coffee shops prior to the national rollout, which is expected in the first half of 2009.

McDonald's restaurants in the Louisville, Ky. area were among the first to test market the McCafé Specialty Coffee line. Several Louisville-area McDonald's owner-operators are now planning renovations to add coffee bars, which will serve cappuccinos, lattes, mochas and baked foods. McDonald's expanded its coffee and beverage options with the launch of its premium roast coffee in 2006. About 80 percent of McDonald's 13,700 U.S. restaurants are independently owned and operated by local franchisees.

by **Kevin Lee** » Wed Jul 23, 2008 5:43 pm

Hi Michele,

Nope because I'm not a coffee drinker

Have you tried it though?

Here's an older, but related post:

McDonald's rebranding
viewtopic.php?p=8390

by **ideasuniversity** » Wed Jul 23, 2008 6:07 pm

It is yet to be in South Africa. There are many McDonalds franchise here,but the concept of the coffee is not yet here or may be I should check it out tomorrow

by **RussellWebb** » Wed Jul 23, 2008 7:05 pm

OK... I have to admit... it's very good coffee. I was surprised! And this doesn't bode well for Starbucks as they have recently announced that they will be closing 600 stores because they are under-performing. Apparently Mcdonalds is going for a full assault on the highly profitable coffee market. And it's such a simple plug-in for a chain like McDonalds. Next up, they'll probably start offering smoothies and health drinks... why not?

While I like Starbucks coffee, I really don't have much loyalty to the brand... I'd prefer to support local coffee houses, and I do whenever I can. I love a good cup of coffee!

McDonalds has had troubles convincing the Franchisees to cover the 100k tab to get in the game - building out, and buying the equipment. Mcdonalds sticks by it's numbers claiming that avg store revenues will increase by 115k per year. Problem is, these numbers appear to be wishful thinking.

I'm not sure if Mcdonalds has decided to finance the coffee concept (out of pocket) or not? I believe I heard that they weren't going to force the zees into the new program... maybe they can't because of the resistance? Anybody know for sure???

by **OmnivoreInk** » Wed Jul 30, 2008 9:44 pm

RussellWebb wrote:OK... I have to admit... it's very good coffee. I was surprised! And this doesn't bode well for Starbucks as they have recently announced that they will be closing 600 stores because they are under-performing.

Maybe if they lowered their prices!

Maybe keep the price for coffee high but make the donuts and brownies, etc. more reasonable!

And I've heard that Steak & Ale and Bennigans are going out of business as well. That's not good news for the economy... but maybe for restauranteurs who will be able to get a building cheap!

by **David Hurley** » Thu Jul 31, 2008 12:52 pm

It will be interesting to see whether this idea takes off in Japan.

Here in Hiroshima there are at least 4 Starbucks that I can think of, and probably more, and several MacDonalds... as well as a lot of home-grown competition.

Of course, MacD already sells coffee, and I'm not sure that expanding will dent Starbucks because I guess they appeal to different market niches... Could hurt MadDonalds more...

by **litekepr** » Thu Jul 31, 2008 4:00 pm

OmnivoreInk wrote:
RussellWebb wrote:OK... I have to admit... it's very good coffee. I was surprised! And this doesn't bode well for Starbucks as they have recently announced that they will be closing 600 stores because they are under-performing.

Maybe if they lowered their prices!

Maybe keep the price for coffee high but make the donuts and brownies, etc. more reasonable!

And I've heard that Steak & Ale and Bennigans are going out of business as well. That's not good news for the economy... but maybe for restauranteurs who will be able to get a building cheap!

I have never liked coffee and everything else is expensive. I think I've actually had something to eat at Starbucks once and that was because I was meeting someone who was buying copies of my books

I had a gift card from Starbucks for ages and gave it to my mom.

The cost is certainly one issue, but I've heard more and more that the personal touch and service has disappeared at many Starbucks. So, one of the great niches that they had is gone. If I liked what they offered, I would still prefer to help an independent shop.

I was watching the Richmond, VA news the day the local Bennigans were closed. Will have to see what will happen next.

Shri

by **David Hurley** » Thu Jul 31, 2008 9:26 pm

On the question of price, again the Japanese perspective is a little different - at least the perspective of a foreigner living in Japan...

I arrived in Japan a few years before the coffee/cafe boom. If you wanted to have a cup of coffee you usually had to go to a "kissaten", a frumpy old shop where you'd get HALF a cup of coffee (because in Japan it is not polite to FILL the cup!!) plus a mouldy cinnamon stick or something. Price? $5.00 minimum. No refills!

The only alternatives were Mr Donut and the Japanese cafe chain, Doutor. Mr Donut offered free refills, but made the seats so uncomfortable you'd be nuts to stick around. Doutor was the best - incidentally, not a bad franchise either.

Then along came Starbucks and a host of other chains and individual cafe's. Suddenly prices came DOWN, quality and QUANTITY went up. It is so good to go into a cafe and have a choice of size of cup or MUG. And I prefer Starbucks' snacks any day to one of those stale old cinnamon sticks!

by **OmnivoreInk** » Mon Aug 04, 2008 10:48 pm

Well.. it's probably not fair to contrast Japan work practices to the US. Their culture is so different over there - they have a much higher regard for doing things right, don't they?

It's no accident that most of the Quality Assurance systems came out of Japan!

I lived in Japan for a year... about five years ago. Of course I was in Misawa and never got to the big city of Tokyo...

by **David Hurley** » Tue Aug 05, 2008 5:33 am

When it comes to Japanese service and quality control, I tend to take it for granted... until I return to Britain!

Mind you, when it comes to cafes... You can't beat a good old British tea shop!

by **TheRainmaker** » Tue Aug 05, 2008 3:25 pm

You mean I can get my breakfast burritos and a great cup of coffee all at one location??? Sounds fabu!!

Havent seen it yet in Port Hope (or Toronto for that matter) but I think I would try it out. I'm sick of paying $5. for a latte.....

J

by **BizLoanz4u** » Mon Aug 11, 2008 11:17 am

I found the following info online in various sites:

McDonald’s is trying out coffee shops in Japan that will challenge Starbucks by brewing up bargain lattes, the fast food chain said Thursday.

McDonald’s Holdings Co. (Japan) on Wednesday opened 15 “McCafe” cafe-style outlets mainly in the Kanto region surrounding Tokyo, aiming at catering to a wider range of customers. Of the 15 outlets, 10 were opened inside McDonald’s existing hamburger shops. Items offered at McCafe shops include soft drinks, soups, sandwiches, pastries and ice creams.

To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald's introduced McCafés. The McCafé concept is a café-style accompaniment to McDonald's restaurants. McCafé is a concept of McDonald's Australia, starting with Melbourne in 1993. Today, most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. In Tasmania there are McCafés in every store, with the rest of the states quickly following suit. After upgrading to the new McCafe look and feel, some Australian stores have noticed up to a 60% increase in sales. As of the end of 2003 there were over 600 McCafés worldwide.

by **David Hurley** » Mon Aug 11, 2008 12:16 pm

I'll let you know when they arrive in Hiroshima! :lol:

by **TheRainmaker** » Tue Oct 14, 2008 1:15 pm

Still havent seen them bot I am happy that Tim Hortons now does breakfast sandwiches..posting.php?mode=reply&f=7&t=2444#

by **Kevin Lee** » Fri Oct 17, 2008 12:02 pm

TheRainmaker wrote:Still havent seen them bot I am happy that Tim Hortons now does breakfast sandwiches..posting.php?mode=reply&f=7&t=2444#

I wonder how much it costs a franchisee to upgrade their store to the new McDonald's McCafe concept?

Perhaps the high cost could be a major deterrent and the reason why we haven't seen any in our local areas.