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Coffee to stay a top priority at McDonald's

  • McDonald's (MCD -0.9%) lists increasing coffee-focused visits as a top priority for its 2014-2016 strategy, according to an internal memo Bloomberg got its hands on.
  • Though the company's brand reputation on drip coffee has improved greatly since McCafe was launched, its other premium coffee and espresso drinks haven't delivered the desired results.
  • Some critics of the McDonald's strategy think customer service and wait times have suffered as the restaurant has put too much of a focus on trying to take market share from Starbucks and Dunkin' Donuts. They would prefer to see Mickey D's target Burger King and Wendy's.
Comments (9)
  • Cfritter
    , contributor
    Comments (51) | Send Message
     
    Totally agree. I am getting so upset with McDonald's. Can you just focus on improving your fast food and try to stop BK and Wendys from stealing market share. I hate this coffee business there in. Fine line between increasing your moat and not staying true to what your company does.
    29 Jan 2014, 11:31 AM Reply Like
  • Those Who Wait
    , contributor
    Comments (285) | Send Message
     
    The salads could definitely use improvement too.
    29 Jan 2014, 11:38 AM Reply Like
  • Steve Tinnes
    , contributor
    Comments (74) | Send Message
     
    Would hate to see them go back to the coffee they had.
    29 Jan 2014, 11:46 AM Reply Like
  • Richard Adams
    , contributor
    Comments (198) | Send Message
     
    Salads have always failed at McDonald's. It's a myth or just a pipe dream that QSR customers have any interest in salads. We won't see McDonald's go back to the coffee they had but the issue is not about drip coffee, it's about espresso. McDonald's customer have also demonstrated that they have no interest in fancy coffee drinks. Starbucks wins this one as they benefited from the millions of $ McDonald's wasted advertising espresso drinks.
    29 Jan 2014, 11:56 AM Reply Like
  • LarryMelman
    , contributor
    Comments (1413) | Send Message
     
    At Starbucks, I'll get my coffee quickly. At MCD, I'll buy coffee with a meal, but it's an add-on. I wouldn't go to MCD or any other restaurant for coffee _only_, because I know I will have to wait in line with those that are also ordering food.
    29 Jan 2014, 12:03 PM Reply Like
  • Chazuu
    , contributor
    Comments (170) | Send Message
     
    Good coffee is a must. It is not only Starbucks and Dunkin' donuts to compete against. Almost every competitor has determined that coffee is a high margin product and everyone has upped their quality level. Here in Pennsylvania our ubiquitous gasoline service chain, Sheetz, actually has a coffee hostess employed at every location to be sure that their rather good coffee is always freshly made. It is a great attraction to draw customers in for gas and the fresh sandwich and snack business they enjoy.
    As a vegetarian there isn't a lot of MCDs food that I will eat but I do stop for coffee and yogurt.
    There are a good many people who are vegetarians (5 to 10% of the population) or health food fans who will still patronize MCD because it has almost always has the best locations for travelers in a hurry. Good coffee, desserts, salads, etc. are necessary for them (and me).
    I am long MCD long term. They are still the leading fast food operation and I would bet that they will stay that way for a long time.
    29 Jan 2014, 12:07 PM Reply Like
  • Liquid DRIPs
    , contributor
    Comments (45) | Send Message
     
    Right now I'm wishing the CAD to USD conversion wasn't such a fail so that I could initiate a position in MCD. MCD is nearing a 52-week low and it's dividend hasn't yielded this much since 2010 and that was also only for a brief time. But considering I will pay 12% on the dollar to convert (as opposed to the ~3% 6 months ago), I will likely be holding out and picking up some more Canadian stocks in the meantime instead.
    29 Jan 2014, 01:43 PM Reply Like
  • GregSoon
    , contributor
    Comments (150) | Send Message
     
    All I can say is MCD should tell this to their employees. I stopped ordering any coffee from McDonald's because of the nasty attitude their employees give whenever they have to ask how many milk and sugars people want. They are so cheap they do not even let customers put their own milk/sugar into the coffee.
    29 Jan 2014, 03:18 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    you're ordering it fro the wrong country.

     

    I only order ice cream or coffee from McD's and they give me as much creamer, as well as ice water, or add my own milk as possible, while I eat roasted garlic.
    29 Jan 2014, 10:38 PM Reply Like
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