February 14, 2017

Do You Know the Way to McCafe?



Hedgeye analyst Howard Penny on McCafe

Starbucks Envy 2.0 - McDonald's Corporation
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11 comments:

Anonymous said...

All the challenges we face and we're spending our resources on McCafe? This company is being run by accountants and its been proven over and over again that accountants cant run McDonald's

Anonymous said...

Starbucks has snob appeal. We will never catch them. We are the WalMart of fast food.

Anonymous said...

McCafe is a complete waste of resources. Starbucks is so far ahead on the premium drinks and Dunkin' Donuts sells a ton of coffee in the Northeast. We would be better off put the money toward advertising our core menu.

Anonymous said...

Ever dollar WE spend on McCafe enriches the Corp thru McCafe grocery store sales.

WE LOSE

Anonymous said...

Chris K - Howdy Doody.
Separated at birth?

Anonymous said...

Chasing $1 coffee while Wendy's, BK, 5 Guys and the dozens of newer burger players eat our lunch and dinner business is just stupid.

MCD just wants us to spend our $$$$ building the McCafe brand so the suits can cash in on the supermarket sales of McCafe coffee with Kraft Foods. We foot the bill to funnel cash to the,. Stupid for us, smart for them if we let them pull it off.

Anonymous said...

There was never much, if any, of a push back when the company decided to compete with it's own operators and put McCafe coffee in supermarkets in 2014. Blame yourselves.

Anonymous said...

Dunkin' Donuts franchisees split the grocery coffee and k cup sales 50-50 with their franchisor. The difference from McDonalds operators: DD franchisees have a truly independent franchisee association that they regularly fund and support, and are founding members of CFA. Their opinion actually matters to their franchisor. McDonalds? Not so much.

Anonymous said...

Having visited McCafe in Europe, I see the possibilities. But America has never approached it as the true business in a business (BIB) potential. It was never designed properly. We don't have the products like Europe, and we don't man it like a BIB.

All the while, politics shut down bottle business - even while they continue to tout $1 drink as a competition against C Stores. SMH

Never fear, $1 drink and mixing chocolate shake with mint will save the day. If not, we will go from $2 McCafe to $1 McCafe.

Richard Adams said...

While I've not been to Europe since McCafe it seems to me that McCafe has been tested to death in the USA. Bistros, free standing McCafes, both big and small McCafes inside McDonald's. etc.
Seems all iterations have been tried and tested. As others have pointed out, McDonald's just can't be a deep discounter of food and also a purveyor of fancy coffee drinks.

Anonymous said...

Having work for an Operator, the Corporation and now an Operator myself for the last 20 yrs. Richard, your statement is correct. McD's has tested the McCafe concept every way you could think of. The ROI at most restaurants is ridiculously unimpressive. But collectively McD's boss dollars are impressive

It will always be hard to sell High End items when the customer believe you are the Dollar General.