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Old 01-09-2008, 05:45 AM   #1
maverickeastwood
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Default McDonalds Vs Starbucks...ding ding

http://www.foxbusiness.com/markets/i..._425749_7.html

McDonalds plans to go up against Starbucks for a piece of the morning latte pie. Could be interesting.
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Old 01-09-2008, 06:38 AM   #2
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That's interesting. I've always thought that Starbucks gets a free ride for selling what is basically garbage from a health perspective, but they don't get tarred like other places that have very little to offer in terms of healthy food.

The mere comparison of the two as brands that actually compete won't be good news for Starbucks.
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Old 01-09-2008, 08:42 AM   #3
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I can't see this really hurting Starbucks, since they've positioned themselves as a luxury item (whether you agree or not is up to you, though). This would be like Kia saying they're going to compete with BMW.
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Old 01-09-2008, 08:56 AM   #4
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It's basically a way for McDonald's to capitalize on the stragglers who are not faithful to Starbucks. There is always that group of coffee drinkers who drink specialty coffees, but don't really care where it's from. As far as I see it, they are trying to take from a bigger that is shared with places like; The Coffee Bean, Second Cup and Blenz and independent coffee shops.
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Old 01-09-2008, 08:59 AM   #5
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Oh great, I'm going to get my coffee from some freaky looking clown that looks like it got fired from the circus for looking at kids the wrong way.

As oppossed to buying my coffee from some pimply faced slacker who shouldn't be operating a car let alone a coffee machine.

Wait they are the same.
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Old 01-09-2008, 09:14 AM   #6
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Macdonalds serves Seattles Best coffee which is owned by starbucks anyways. So if they make Latte from beans they get it still starbucks gain.
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Old 01-09-2008, 09:24 AM   #7
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Quote:
Originally Posted by Flames in 07 View Post
That's interesting. I've always thought that Starbucks gets a free ride for selling what is basically garbage from a health perspective, but they don't get tarred like other places that have very little to offer in terms of healthy food.

The mere comparison of the two as brands that actually compete won't be good news for Starbucks.
Appropriately enough, on one of the morning shows this morning (I flip through them so fast I lose track of which one I am listening to), they were talking about foods you should avoid at all costs. One of the coffees that Starbucks sells was described as having "as many calories and fat as a Big Mac."
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Old 01-09-2008, 09:51 AM   #8
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Originally Posted by Resolute 14 View Post
Appropriately enough, on one of the morning shows this morning (I flip through them so fast I lose track of which one I am listening to), they were talking about foods you should avoid at all costs. One of the coffees that Starbucks sells was described as having "as many calories and fat as a Big Mac."
That's probably the Eggnog Latte.

But the basic ingredients of a latte are coffee and milk. Nothing that unhealthy there. And Starbucks now uses 2% instead of whole as their default milk.

Starbucks pioneered the latte-based coffeehouse concept across North America. For better or for worse, McDonald's isn't going to be able to hurt them. But what McDonald's might do is bring the concept to the lower class.
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Old 01-09-2008, 10:05 AM   #9
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I read an article in Macleans about the "breakfast food war" in general. It wa quite interesting. Basically so many people eat breakfast on their way to work or whatever, there is a huge amount of money at stake and will be a heated competition as such.

That is why we have to endure commercials like the Tims "Belt".
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Old 01-09-2008, 10:06 AM   #10
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Starbucks is terrible coffee anyway. I decided a long time ago that since I can make better coffee at home for a fraction of the cost, Starbucks espresso drinks are off the menu.

It's true that it's mostly just coffee and milk, but there's a reason they flog those "flavoured syrups" on you. To mask the fact that their coffee is made from a mixture of battery acid and guano. $4.25 for an ulcer in a disposable cup? No thanks. I'll brew my own.
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Old 01-09-2008, 10:11 AM   #11
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Quote:
Originally Posted by GreenTeaFrapp View Post
That's probably the Eggnog Latte.

But the basic ingredients of a latte are coffee and milk. Nothing that unhealthy there. And Starbucks now uses 2% instead of whole as their default milk.

Starbucks pioneered the latte-based coffeehouse concept across North America. For better or for worse, McDonald's isn't going to be able to hurt them. But what McDonald's might do is bring the concept to the lower class.

Not so much that is unhealthy, but its loaded with calories...alot of people have some type of coffee drink from starbucks everyday...sometimes has lunch..bad bad bad....most people dont have mcdonalds every day...anything in moderation is ok...going to mcdonalds once a month isnt going to kill you, going to starbucks every day an getting a chia latte is going to add some pounds to you, if you dont do much else.

I agree with above and i have said this to many people, Starbucks gets a free pass...spin it anyway you want too...its up there with mcdonalds.
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Old 01-09-2008, 10:14 AM   #12
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starbucks has way to loyal of a following, and in reality it is a cool thing to have a starbucks in your hand.
McDonalds right now is at the exact opposite where the cool thing is to rag on it, and the people who go there.
Starbucks wins hands down
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Old 01-09-2008, 10:21 AM   #13
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McDonald's has made big improvements in it's coffee, it's not SBC but it's own supplier:

McDonald's introduced its premium blend CafeeRoast, an Arabica coffee supplied in Canada by Mother Parkers, in 2003.

http://www.canada.com/reginaleaderpo...7-01be823174ff

In Australia, McD's has separate Starbuck like kiosks within a store just for coffee. Could be a precursor of what's to come here.

McD's biggest hindrance is their location. While Starbucks is streetside all over downtown, McD's is in a single location typically. Look at downtown Calgary, they have their decrepit location on 8th Ave well out of most people's morning commute. Far easier to hit a Timmys or Starbucks.
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Old 01-09-2008, 10:22 AM   #14
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Quote:
Originally Posted by GreenTeaFrapp View Post
Starbucks pioneered the latte-based coffeehouse concept across North America. For better or for worse, McDonald's isn't going to be able to hurt them. But what McDonald's might do is bring the concept to the lower class.
Exaclty! Think Cletus from the Simpsons: "Hey Brandene, look at me I got me one of them' latte's, I'm a millionaire."

It's the same concept as to why designer jeans make so much money. Starbucks is a Luxary item and the type of people who identify with the brand aren't going to buy a latte from McDonald's because the price is a couple of bucks cheaper. In fact I think McDonald's might actually canabalize their own regular coffee sales, but reap higher margins because they'll be able to charge more for percieved 'specialty coffees.' Good move for McDonalds in a business sense but I don't seem them stealing market share, just improving margins.
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Old 01-09-2008, 10:24 AM   #15
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For those who spend lots at places like Starbucks, consider this. I bought for my office a Braun Tassimo coffee maker. It makes regular coffee and tea, but also makes cappuchino and other specialty coffees for a fraction of the cost. It works slick and the coffee is good. Maybe you can't deduct the cost from taxes like I can, but it's still a good deal. Someone made the puchase for me so I'm not sure of the cost, but I think it's around $110.

To make a cappuchino, you put into the machine a small bar-coded package of coffee. Machine reads the code so it knows what you're making and then puts through the right amount of water. Once the coffee is made, you put in another bar-coded milk package to finish the cappuchino. Same thing with the other drinks. Nice.

Not sure of the cost so I'm guessing here, but I think it's well under a buck for a cappuchino compared for $4-$5. And you don't have to drive to get it. Sure beats going into Mcdonalds, which I try to avoid at all costs.
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Old 01-09-2008, 10:24 AM   #16
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The minute that MacDonalds invents the cheeseburger flavored coffee syrup, the coffee wars will be over.

StarBucks is StarBucks, but Macdonalds to a lot of people is still the heart beat of America.

The only real marketing failure that they've ever had was the Pizza, and that wasn't much of a failure.

If they decide to go into coffee whole hog and spend a lot of money marketing it, StarBucks will take a hit.
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Old 01-09-2008, 10:43 AM   #17
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Man, I liked that pizza. It was nice to eat in a really weird, gross kind of way.
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Old 01-09-2008, 11:12 AM   #18
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Mc D's coffee appparently is quite good quality. I think this will be quite interesting!

Change "would you like fries with that?" to "would you like a grande non-fat decaf extra hot double shot mochachino with that?"!
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Old 01-09-2008, 11:22 AM   #19
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Their biggest mistake is marketing their coffee under the MacDonald's brand.

Any greasy puke thats asks me if I want McLatté or the McFrappachinoMcMachiatta will be picking up his teeth with tweezers.

Although, to be fair I dont really like Starbucks or fancy coffee anyways. I like my coffee simple and in plentiful supply. Coffee is a drug and it has a job to do, I'm not paying more for designer drugs, I wont pay more for fancy designer coffee.
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Old 01-09-2008, 11:32 AM   #20
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There was a big taste test where McDees beat Starbucks pretty good. I havn't had it, but alot of people seem to really like McDees coffee. I think they will do better then most expect.
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