NEW YORK, U.S. – To compete with the likes of Dunkin’ Donuts and Starbucks, Bloomberg reports that McDonald’s is planning to shake up its McCafe brand by reintroducing the concept in 2017, about eight years after its debut.
“The push follows efforts to upgrade its java and get more of its beans from sustainable sources, mimicking a move by its Seattle-based rival (Starbucks),” notes the news source.
“We’re really excited about the McCafe brand and what it can do to complement our food offerings,” Kristy Cunningham, U.S. senior vice president of strategy and insights, told Bloomberg.
The new McCafe will include special deals, more seasonal beverages and increased marketing of the chain’s coffee rewards program, she said.
Even though McCafe generates $4 billion annually in U.S. sales, it could do a better job at cater to customer needs, Cunningham told the news source.
The QSR offers a wide range of coffees, but it hasn’t become a go-to destination for upscale offers such as lattes, mochas and higher-margin espressos.
McDonald’s is also planning to emphasize price, compared to the more expensive Starbucks offers.
Cunningham told Bloomberg that McCafe will offer a $1 drip coffee and a $2 small specialty-beverage deal for the first quarter of 2017.
The chain, with about 14,000 domestic restaurants, is upgrading its espresso machines.
The equipment costs about $12,000 each and will enable locations to produce more consistent-tasting drinks and make a wider variety of drinks.
