McDonald's to challenge Starbucks with 'posh' coffee

Saffron Alexander
7 DECEMBER 2016
Telegraph UK

The McDonald’s rebrand is in full swing. Earlier this year the fast food chain dropped its clown-like red, yellow and white packaging and introduced bright colours on brown paper bags for a “simple and fresh” look to help it compete against trendy burger bars such as Byron and Patty & Bun.
Now, after revealing new plans to completely revamp its McCafé brand, the company appears to have set its sights on challenging popular high street coffee chains such as Starbucks.
According to a report from Bloomberg, the McCafé brand, which was first introduced in the UK in 2012, will be getting a $4 billion rebrand to ensure all coffee will be made from sustainably sourced beans by 2020.
That’s right: McDonald’s coffee, known across the high street for its cheap and cheerful nature, is going posh.
The company will install new, upgraded coffee machines in stores equipped with features to create a wider variety of “more consistent-tasting drinks”.
The rebrand will also include “special deals, more seasonal beverages, and increased marketing of the chain’s coffee rewards program” so customers can expect more Starbucks style seasonal drinks all year round.
Kristy Cunningham, US senior vice president of strategy and insights, told Bloomberg: “We’re really excited about the McCafé brand and what it can do to complement our food offerings.
“It gives us the chance to follow what the customer is really looking for.”
McCafé coffee
The current plans to upgrade the McCafé brand is focused on chains in the US, but coffee from McDonald’s has already been proven to be extremely popular in the UK and the rest of Europe.
In 2010 McDonald’s overtook both Costa and Starbucks to be named the biggest seller of coffee in Britain, shifting 84 million cups over a period of 12 months. Its success in the coffee department has been attributed to its relatively low prices when compared with other high street coffee chains.
Earlier this year McDonald’s opened its first standalone McCafé store in France selling club sandwiches, raisin bread, soup, tiramisu and other items you wouldn’t expect to find on a McDonald’s menu.
When asked if there were any plans to open a similar store in the UK, instead of simply selling McCafé products alongside the usual menu in restaurants, a McDonald’s spokesperson said: “McDonald’s is continuously experimenting to diversify its range, develop new services, and create new formats.
“This summer McDonald’s has been trialling its McCafé world in Paris. This trial has just begun so it is too soon to draw any conclusions from the initiative other than the fact that 25 to 30 jobs will be created.”

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