McDonald’s has been revamping its brand over the past few years. It launched table service, ordering kiosks, and all-day breakfast. Now, the fast food chain is pouring its resources into McCafe.
Out of all the initiatives McDonald’s has taken to move forward in the competitive world of fast food, all-day breakfast is a major win. Capitalizing off of that — McDonald’s will be updating its eight year old brand, McCafe, to be an affordable, quality coffee experience. McCafe racks in $4 billion in US sales each year, reports Bloomberg. McDonald’s will use that to build the brand into something that customers want, rather than be a cheap option. The new McCafe concept will upgrade the chain’s coffee experience.
“We’re really excited about the McCafe brand and what it can do to complement our food offerings,” Kristy Cunningham, US senior vice president of strategy and insights, said in the report.
The new McCafe campaign will include special deals — such as $1 drip coffee and $2 small specialty beverages. Compare that to Starbucks, which sells its grande brewed coffee for $2.10 and tall specialty drinks for $4.25. Giving Starbucks a run for its money.
Customers at Starbucks expect a different experience than when they go to McDonalds. At Starbucks, customers expect consistent, innovative, high-quality coffee or blended drinks. While McDonald’s caters to a different customer who might not necessarily be interested in coffee. It’s just a convenient option on the menu to accompany breakfast, or as a quick, cheap caffeine fix.
McCafe seeks to improve its coffee quality to be a stronger competitor to Starbucks. While Starbucks already uses sustainable sources and quality ingredients such as Starbucks Reserve, McDonald’s announced in October that it will purchase its coffee from sustainable sources by 2020. While that’s still far in the future, McCafe did open its first stand alone location in Toronto as a way to promote the brand.
The new McCafe experience will launch in 2017. McDonald’s invested in new espresso machines and milk steaming technology that will upgrade its coffee. McCafe will also be revamping its seasonal menu and offer a rewards program to loyal customers. Watch out Starbucks, looks like McDonald’s is taking a few notes from your success.