One of the biggest fast-food chains in the world is rebranding their coffee brand for $4 billion in the coming year. According to recent news, McDonald plans to revamp their McCafe franchise to a whole new concept in order to compete with coffee shop giants Starbucks Corporation and Dunkin’ Bands Group, Inc.
The whole new concept of the McCafe will be unveiled next year; just 8 years after the fast-food joint explored the coffee and cafe business. The revamp includes the improvement of its java beverages, and now putting more focus on getting more of its beans from sustainable sources just like other coffee shop giants, especially the Seattle giant Starbucks.
The company will start to offer $1 any size McCafe signature blend coffee and a $2 small specialty coffee including lattes and mochas as part of a limited-time promotion. McDonald aims to plunge on the battle of the coffees between what is commonly Starbucks versus Dunkin’ for the consumers.
The fast-food chain already used the McCafe brand in Australia as an experimental restaurant marketing healthier fare dubbed as “The Corner by McCafe”. While as for the Hong Kong branch, the company teamed up with the hazelnut confectioner Ferrero to produce hazelnut- themed coffee beverages a few years ago.
McDonald’s Growth and Other Upgrades
Sales at McDonald’s grew 3.3 percent last year, a fragment of the percent growth coffee cafes have seen. The company’s same-store sales rose 3.5 percent, a stunning improvement in all its global sectors. On the other hand, U.S. sales growth was slower with only 1.3 percent which is due to the persistent soft traffic within the U.S. restaurant industry, while McCafe generates $4 billion annually in U.S. sales.
There is a better and a higher markup for Espresso-based beverages according to reports, which is why McDonald is pushing the rebranding for its McCafe. The company wants to sell more and wants to offer more diverse seasonal offerings on their beverages along with an innovative coffee rewards program. An estimated $12, 000 worth of new McCafe machines are expected to hit the stores early next year, the new machines will be capable of making new and diverse beverages from the fancy new McCafe menu.
There are also upgrades on the success of McDonald’s all-day breakfast, which was introduced last year in the U.S. The refurbishing includes better table services and a touch-screen ordering kiosk. The all-day breakfast helped McDonald’s with the resurging growth even after the steep 1.3 percent domestic growth.
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