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Business Mon Jan 07 2008

Waiting for a McLatte

Oak Brook based McDonald’s is set to offer gourmet coffee later in the year, according to The Wall Street Journal.

For some time the fast food giant has been upgrading their coffee offerings as well as spaces in most stores, but now its going to add full on coffee bars complete with baristas. The move will signals the direct competition between McDonald’s and the current coffee dominator Starbucks, who has been encroaching on the breakfast market with the addition of drive-thru windows and breakfast sandwiches.

McDonald’s expects to add $1 billion to annual sales with the addition to its 14,000 stores. This comes as a second blow to Starbucks; Dunkin Donuts' own move toward the espresso market has also been viewed as a threat.


Victor / January 13, 2008 7:32 AM

McDonalds has been offering "premium" coffee in Asia for at least 7 or 8 years. In Hong Kong, "McCafes" are self contained boxes in the Mcdonalds and they serve all the coffees and desserts. I don't know how successful it is, but the final product is quite poor.

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