McDonalds wants to be Starbucks
Tom Dougherty, CEO – Stealing Share
7 December 2016
McDonald’s to overhaul McCafe and fixing the wrong problem
In the latest move that demonstrates it has lost its mind, McDonalds is going to overhaul its McCafe brand.
Apparently, McDonalds wants to be Starbucks.
The reason, according to Bloomberg, is that this will better position McDonalds against Starbucks and Dunkin’ Donuts. Are you kidding me?
McDonald’s with a McCafe sign
Its still McDonalds.
In fairness, McDonalds coffee isn’t all that bad. A lot of people would seem to agree with me too. It generates about $4 billion a year.
It pisses me off that McDonald’s is putting the cart way in front of the horse. Like next county over in front. People aren’t coming to McDonalds because of bad coffee. They aren’t coming to McDonalds because of the McDonalds brand.
“McCafe, as dressed up as McDonald’s wants to make it, is still McDonald’s. Its lipstick on a pig.”
Let me put this in a perspective. As part of this plan, McDonald’s will buy new espresso machines at $12,000 a piece. McDonald’s has about 14,000 stores in the US. So they are going to spend roughly $168 million on espresso machines. And that’s just the price of the machines.
It’s the brand, stupid, not McCafe
But that $168 million doesn’t fix the underlying problem. People are not coming to McDonalds.
Is a $12,000 espresso machine and $2 specialty coffee enough to convert a Starbucks customer? Maybe if a Starbucks customer was only buying coffee. But Starbucks customers buy more than coffee. They buy the Starbucks brand.
This is what McDonalds can’t get through their collective thick heads. McCafe, as dressed up as McDonald’s wants to make it, is still McDonalds. It’s lipstick on a pig.
It’s the brand, stupid.
Getting people to come to the McCafe requires them to embrace the McDonald’s brand. If the parent brand causes prospects to turn up their nose, better steamed milk won’t bring them in.
McDonald’s, I don’t know why you don’t see it. You have a fundamental problem with your brand. I don’t really even know what it means anymore. But I do know it does not mean coffeehouse coffee.
$168+ million is a lot to spend on fixing the wrong problem.
Taco Bell Cantina Tom Dougherty, CEO - Stealing Share 26 September 2017 Taco Bell Cantina depends on its meaning I have never nor will ever taste a morsel of anything from a Taco Bell menu. Mystery meats come to mind first, a disgruntled employee peeing in nachos does...
The NFL Protests Tom Dougherty, CEO - Stealing Share 25 September 2017 NFL protests. The stakes are high. The NFL protests may be a danger to the US itself. What on earth is going on? Do you disagree with the NFL protests by many of the players? The ones where NFL...
Go Boldly Tom Dougherty, CEO - Stealing Share 21 September 2017 Go Boldly American Biopharmaceutical Companies Go Boldly, the marketing arm of the American Biopharmaceutical Companies, has launched a new TV campaign. It is perfect branding? It just might be. The key...