Foofy Coffee at McD’s

McDonald’s is making a killing with their new McCafe’s. I first saw them in Australia before they debuted here in the States. They were smokin’ hot over there and now that the test run is over, they’re smokin’ hot here in the US.

This month McDonald’s reported 2.6% rise in same-store sales for July. Worldwide, numbers were up 4.3% with 7.2% in Europe alone.

How? The new foofy brews cost 60%-80% more than a regular Golden Arches cup of joe. Here’s the catch, they offered fancy coffee for 20%-25% less than Starbucks.

Now that’s a business model that works. Same quality, same essential product, at a cheaper price. Now let’s see how Starbucks strikes back.


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