McDonald's coffee bars to take on Starbucks

[Thunderdog]

Quote from armoured saint:

...I don't eat @ McDee's but i have had their coffee.. it's as good (or worse) as any other.. pay a little attention to the "brew process" and your 90% there imo

The last time I had coffee at McDonald's was in the mid-80s. It was not good then. Perhaps it is better now?

P.S. I don't think "brew process" is quite "90% there." There is the small matter of bean quality, as well as how fresh the brewed coffee is. Personally, I don't think they brew often enough in most coffee shops I've been to. During peak times it's okay due to turnover, but in the slower periods, coffee shops should refresh more often, especially if they want to play with preminum pricing. During the slow periods I always ask how fresh (in minutes) their freshest brew is. They don't always tell the truth.

 

[armoured saint]

Fresh coffee is always better. I drink a pot/day, BLACK no sugar, no milk no frothy nonsense

i want to TASTE the naked bean.

No one has said one thing about the BEANS. Are they special beans?

 

[S2007S]

HMMMMMMM


funny how he comes back a day after the MCD announcement.


Starbucks Corp. Chairman Howard Schultz is reclaiming the chief executive's chair as part of a major restructuring initiative to slow the company's U.S. growth, ramp up expansion overseas and improve offerings for its customers.

 

[atticus]

Quote from FerdinandAlx:

Brand value. It's what brands are all about, charging premiums. A type brands charge A type premiums.

The people in this thread who compare the prices at Starbucks to what their competitors charge don't understand this. Price competition is an issue when talking about discount stores, not when talking about high class brands. It's cheaper to completely renew the Starbucks brand then to enter into direct price competition.

Price competition will kill profit margins and will be the beginning of the end. I think Schultz knows this since he's talking about the danger of the commoditization of his brand.

While I agree, I think the problems arose when they started the "stand-up" store model to save on real-estate. The high-margin customer spends 90 minutes on average reading the paper or using the wifi.

 

[Thunderdog]

Quote from armoured saint:

Fresh coffee is always better. I drink a pot/day, BLACK no sugar, no milk no frothy nonsense

i want to TASTE the naked bean.

No one has said one thing about the BEANS. Are they special beans?

There is a definite difference in quality of beans. Plus there is the matter of personal preference. At home, I usually stick to a blend of about one-third dark and one-third light of Moka Java beans. (Not flavored beans, where the flavoring only masks the inferiority of the bean itself.) Another very good blend is 50/50 of Ethiopian Limu and Sumatra Madheling. I assure you it won't disappoint.

A pot a day, eh? How's the blood pressure?

 

[Thunderdog]

Quote from atticus:

While I agree, I think the problems arose when they started the "stand-up" store model to save on real-estate. The high-margin customer spends 90 minutes on average reading the paper or using the wifi.

I agree. I would never pay Starbucks prices to drink coffee standing up or to go. There is overpricing, and then there is robbery.

 

[FerdinandAlx]

Quote from atticus:

While I agree, I think the problems arose when they started the "stand-up" store model to save on real-estate. The high-margin customer spends 90 minutes on average reading the paper or using the wifi.

At what kind of locations did they open those outlets?

 

[atticus]

Quote from FerdinandAlx:

At what kind of locations did they open those outlets?

Standalone and in their co-branded locales; malls, etc. Most of the Chicago stores have seating limited to a few stools.

 

[FerdinandAlx]

Ok, I can see the problem with that. I think the only viable locations for a store type like that would be train stations. The problem would be over-seeable though as locations like that are pretty easy to close down. Perhaps you could say the low-cost would be worth the experiment.

 

[atticus]

Quote from FerdinandAlx:

Ok, I can see the problem with that. I think the only viable locations for a store type like that would be train stations. The problem would be over-seeable though as locations like that are pretty easy to close down. Perhaps you could say the low-cost would be worth the experiment.

Case in point -- we would go out of our way to find a store with a couch and a fireplace, which required passing at least two stores to find.