Alpine Buttercup

Coffee Wars: McDonald's vs. Starbucks

Gentlemen,

I completely disagree with all your analysis of the $4 coffee. It is about taste. It is not about experience (or just a little). Why on earth would anyone pay $4 for a latte? It is a well packed espresso with fresh crema on top. Properly foamed milk that picks up the oils from the fresh roasted beans. And the smell. Women that don't like to over eat can have a liquid that is satisfying and doesn't make your stuffed stomach hang over your pants. Ten minutes with a delicious coffee and the rest of the afternoon is great.

When you automate the espresso process and have untrained kids in a hurry to slap out hot milk (with poor foam and no smell from the coffee) why on earth did I just pay $4 for that? And if Starbucks can push a button so can anyone. It becomes a drink for people who can't tell the difference and will eat any old junk food. Those people are hardly likely to discriminate on name and are likely to fall to price and convenience. Pile it up with whip cream (edible oil product) and sugar... who will notice?

This is why the independent coffee shops stay in business and won't be competing with McDonald's. Starbucks lost the core of its earning power when it switched to automated espresso machines. Now it's a race to the bottom of price.