Mccafe Analysis

McCafe was introduced to the McDonalds business model at a time when the fast food industry, and dining out as a whole, was on a downslide. Consumers were trying to cut back and save money – dining out was an easy way to do that. McCafe is a full-service coffee bar, created as an extension of a current McDonalds counter, or as a stand-alone restaurant. The concept is positioned to consumers that fall in the working adult category, who enjoy coffee, and was said to be a direct competition to Starbucks. In terms of the comparison of McCafe to the overall McDonald’s vision and mission, the two fell in a parallel line. How would McCafe mirror the McDonalds vision? First, by delivering the end product to the customer in a timely manner – coffee machines were made to make espresso, lattes, and cappuccinos with the touch of a button, in around 22 seconds or less. McCafe coffee creation didn’t require a well-trained barista, just as a good Big Mac didn’t require a chef behind the grill. The McDonalds mission states that they want to “be our customers’ favorite place and way to eat.” Their global markets, regardless of whether they focus on burgers or coffee, is to center on five basics of an exceptional customer experience – people, products, place, price, and promotion – also known as the Plan to Win strategy. The McCafe model resonates the same way as the original McDonalds concept. In aligning the McCafe strategy with the Business Strategy Diamond, the following aspects of McCafe fulfill the strategy:

Arenas: Where will McCafe be active? McCafe locations will be active as a full service coffee bar, either in a standalone facility, or as an extension of a current McDonalds restaurant.
Vehicles: How will we get there? McCafe specialty coffees would ideally be introduced by current McDonalds franchisees interested in a way to diversify their product line and increase sales. However, new franchise owners with a desire to build standalone McCafes or new

Links: to obesity =negative press, high calorie coffees and snacks contributing factors Strong real estate locations Differentiation combining food with coffee cafe High visibility McCafe is a great new venture for McDonalds – a company with a wealth of history, but a need to differentiate itself from its competitors like Burger King, Taco Bell, Wendys, etc. McCafe will give McDonalds a great way to increase profits and move forward in the restaurant industry. Additional Sources: http://www.aboutmcdonalds.com/mcd/our_company/mcd_faq/student_research.html?DCSext.destination=http://www.aboutmcdonalds.com/mcd/our_company/mcd_faq/student_research.html#1 http://www.brandweek.com/bw/content_display/news-and-features/retail-restaurants/e3i017491d566a1666159bb33db9f6becf9