McDonald's Premium Coffee Rollout Running into Tough Challenges
McDonald’s announced plans earlier in the year to sell a premium line of lattes, smoothies, cappuccinos, and ice-blended sweet frappes at all its U.S. locations. But what with the economy sliding steeply south, spending habits have changed and McDonald’s is facing new challenges.
Newly budget-conscious consumers now often prepare coffee at home rather than spend at coffee shops. Starbucks Corp is shutting down hundreds of stores because of dropping sales, which would seem to give McDonald’s executives occasion to pause and ponder the timing of their upgrade plans.
At least some frachisees don’t want to spend the money it takes to fully upgrade to the new line of espresso drinks and the remodeling that goes along with it. Corporate has estimated the package at $100,000 and says it will cover a portion of it.
But with some pundits, including former Fed Chairman Alan Greenspan, saying that we are in the middle of a once-in-a-century financial crisis, is it time to put these plans on hold? One would think so, but McDonald's executives say the program is on track and doing well.
Read The Wall Street Journal article.
Newly budget-conscious consumers now often prepare coffee at home rather than spend at coffee shops. Starbucks Corp is shutting down hundreds of stores because of dropping sales, which would seem to give McDonald’s executives occasion to pause and ponder the timing of their upgrade plans.
At least some frachisees don’t want to spend the money it takes to fully upgrade to the new line of espresso drinks and the remodeling that goes along with it. Corporate has estimated the package at $100,000 and says it will cover a portion of it.
But with some pundits, including former Fed Chairman Alan Greenspan, saying that we are in the middle of a once-in-a-century financial crisis, is it time to put these plans on hold? One would think so, but McDonald's executives say the program is on track and doing well.
Read The Wall Street Journal article.
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