Michael J. Golde

Starbucks vs. McDonald's: Filtering Through the Coffee Wars

Katherine Glover has written a related article to this topic entitled: "Is Starbucks Good or Bad for Independent Coffee Shops?" citing my article at: industry.bnet.com/food.../

Starbucks vs. McDonald's: Filtering Through the Coffee Wars

I never meant to suggest that McDonald's revival was due to coffee sales. I don't think I said that. What I said is that McDonald's whole focus on the coffee market has changed. They weren't directly competing with SBUX is that past, but McDonald's current array of premium drinks is a different story. McDonald's exploiting a market largely developed by SBUX, but to McDonald's credit they came out with excellent products at compelling price points. Nevertheless, it does not have the cachet of SBUX and it is not a "Third Place".

Apple: Like Starbucks and Whole Foods, A Trend That's Past Its Prime

This is completely simplistic analysis. You have no idea of Apple's business plan or future expansion. iTunes and the Apps Store will be difficult to replicate. The main demographics for Apple products are students (starting his junior high or high school through universities) and the under 30 -35 crowd.

Once Apple opens up more markets, such as China, for iPhone expansion, it is likely that Apple revenues and market share will continue to grow. Apple, unlike Starbuck's and Whole Foods, is not a one-trick pony. Apple continues to innovate and I certainly wouldn't be against them. I would expect some new product announcement in the current or next quarter.