I just love watching this storm brew between Starbucks and McDonald’s new McCafe drinks. I’m not sure why it fascinates me so much. Maybe because it’s entertaining to see McDonald’s (of all places) giving Starbucks a run for their customers. Or maybe it’s because I happen to like the idea of getting my coffee for less while sitting in my car at the drive thru.
Don’t get me wrong, I like Starbucks. I go to Starbucks. I can get my coffee with Soy milk at Starbucks. Starbucks is everywhere and my drink will always taste the same no matter which location I’m at.
So what does Starbucks have to fear with the McCafe finally coming to fruition in the U.S.? (The McCafe concept has been around for a while now internationally. Last May, I ordered a mocha from a McCafe in the Frankfurt airport. It even came with a tasty little European chocolate.) Is it the perfect storm for Starbucks? With consumers strapped for money in the current economy will they turn to McDonald’s for a less expensive coffee fix?
Or will consumers continue to frequent Starbucks because it’s about the experience just as much as the drink? The décor, the music, the service, the customization, the status of carrying a Starbucks cup into your morning meeting versus a McCafe cup? Starbucks claims their consumers won’t defect but are coming in less often.
McDonald’s can’t hold a candle to the status and atmosphere Starbucks offers so will they be able to gobble up any of the market share? You won’t see people heading to McDonald’s in the evenings with their friends for conversation over coffee. After all it is a fast food joint. The way I see it, McDonald’s stands to win over some morning traffic looking for convenience, those who want to save a buck, moms who don’t want to get the kids out of the car, and upgrading current patrons.
There’s a lot of speculation lately whether consumers are downgrading or buying less. Are they willing to sacrifice brand for price? Status for savings? Service for convenience? Along the same vein, will JCPenney entice Macy’s shoppers with exclusives such as Cindy Crawford Style and Joseph Abboud launching this fall? Will Walmart’s newly re-designed consumer electronics departments woo over Best Buy shoppers looking to save?
Only time will tell.
Weblinks to note:
http://www2.mcdonalds.com/mccafe/index.html?TargetSection=Products
http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-newsCompany
http://online.wsj.com/article/SB124139141624581429.html
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