Right now, I’ve got a coffee buzz. Not from drinking it. (I hate coffee.) Rather, I’ve been knee-deep in trend info for a soon-to-be-released report for Chicago-based research company Mintel (Coffeehouses & Donut Shops – U.S., June 2010). I spent part of the day yesterday looking at social media discussion on the coffee beverages offered by various coffeehouses, including Starbucks and McDonald’s McCafé. I waded through hundreds of blog posts from a neutral, topically organized database of such. The thing that surprised me most was that I could not find one positive blog comment about McCafé coffee. I looked. And I saw very few negative comments about Starbucks. In fact, what I noticed about them was the high regard basic bloggers have for the whole Starbucks experience (except for posts from those who hate big corporations.) The negativity surrounding McCafé coffee was only matched by that expressed for Burger King’s BK Joe coffee. (Burger King announced in February that by the end of September, Seattle’s Best Coffee—owned by Starbucks—will replace the BK Joe coffee program. Good move, based on the comments I read.)
I wasn’t surprised when I read an article today in Chicago Business (powered by Crain’s) that reported sales of McCafé hot drinks dropped from 55 a day per restaurant when the coffee brand launched in May 2009 to about 25 per day earlier in June. (See http://www.chicagobusiness.com/cgi-bin/mag/article.pl?articleId=33545)
People aren’t liking McDonalds coffee. I know. I read their comments. I think it’s an expectation thing. What do people expect from McDonald’s? Cheap food. Is anyone really going to trade the splendor of Starbucks for a cheap cup of coffee from McDonald’s? The coffee would have to be phenomenal, and apparently, it isn’t. So forget taking business away from Starbucks (which the chain was trying to do). On the other hand, McDonald’s has come through with its own salvation – the McCafé Frappe (blended mocha or caramel ice drink with only a hint of coffee served with whipped cream and a chocolate or caramel drizzle). Now we’re talking. I’d buy that in a heartbeat. The Chicago Business article said, “Frappes have boosted sales quickly this spring, even without heavy advertising, and the drinks helped McDonald’s U.S. same-store sales grow 3.4% in May from the same month last year.” There’s been no crying at McDonald’s over lost coffee sales. I think the chain just found its coffee niche, thanks to sugar and cream.
Meanwhile, Starbucks, which has no coffee problem to overcome, is still buttressing its image. I read an article today on readwriteweb.com that said by fall 2010, Starbucks will drop its two-hour restriction on free Wi-Fi. And upping the ante, it will give internet users free access to the Wall Street Journal online (I’d go to Starbucks for that, and remember, I hate coffee). Later, the chain will announce details of other free-access opportunities, one of which will be The New York Times. (You recall, they will soon make you pay for their content. Does this mean not if you’re logged in at Starbucks? Brilliant, if that’s what’s coming.) You GO, Starbucks! Jody Shee
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