Peep Insights: The Latest in the Coffee Wars

Peep Insights: The Latest in the Coffee Wars
Dan Gould
  • 11 may 2009

Last Wednesday was National Beverage Day, a little-known holiday that inspired us to examine the new McCafé coffee line, from McDonalds.

Perhaps an unlikely chain vying for a piece of the caffeinated pie, but with this week’s launch, McDonald’s introduced an expanded McCafé coffee line, featuring cappuccinos, mochas and lattes. The specialty offerings are available at 11,000 locations (out of 14,000) nationwide. And taking a page from the coffeehouse playbook, McDonald’s customers can customize any drink with flavored syrups, steamed milk or whipped cream.

While Starbucks battles the stigma of the recession-unfriendly “4 dollar coffee,” a coffee run at McDonald’s will set you back $2.19 for vanilla cappuccino and $2.29 for a mocha (12 ounce).  McDonald’s hopes the affordable coffee menu will generate $1 billion in sales this year.  Not that the fast food giant is hurting for cash in the economic downturn – as people look for cheaper eating-out options, McDonald’s posted a 5% gain in U.S. in November of last year and has continued to grow.  Same-store sales rose 2.8% from December to February.

Meanwhile, Starbucks is closing stores (900 since last summer), laying off employees (12,000 in 2008) and trying to slow same-store sales (down 8% in the second quarter).

Some argue increased coffee competition will only generate more customers. To be safe, McDonald’s will promote the McCafé line with a multimedia $100 million ad campaign and various online sweepstakes.  The ads and the contests all encourage Americans to “McCafé their day.”  For nearly a dollar less a drink on average than bigger coffeehouse chains, many just may.

Contributed by Bridget Lee


Why The Apple Watch Is Taking Foot In The Restaurant Industry

Technology Today

Google’s Gyroscopic Camera Lets You Shoot VR Content On Android

The experimental device called Sprayscape takes photos inside a sphere to create 360-degree virtual images

Syndicated Today

Why Fashion Labels Are Moving Away From Overt Branding

New research suggests brand are shying away from logos and flashy displays


Get PSFK's Related Report: Future of Retail: Technology Primer

See All
Fashion Today

Scientists Have Developed A Furry Wetsuit Material Inspired By Beavers

MIT researchers created the lighter and warmer fabric to maximize speed in the water and to keep swimmers dry

Related Expert

Hardeep Walia

Thematic Investing

Advertising Today

Coca-Cola Has Created A Custom Gaming PC

Maingear developed a computer featuring a fully functional coke bottle water-cooling reservoir

Social Media Today

Chipotle’s New Weekly Show Broadcasts Over Snapchat

The Mexican fast food brand is trying to build goodwill with high school and college students through the social media platform

Media & Publishing Today

The NBA Is Filming Live Games With A Special Camera Just For Your Phone

Subscribers to League Pass can now access a feature called Mobile View, which is shot to be optimized for phones and tablets


Future Of Automotive
Scenarios Driving The Digital Transformation Of An Industry

PSFK Op-Ed Yesterday

General Electric: Lighting’s Impact On Sleep Is More Than The Off Switch

Jeff Patton, General Manager of Connected Home Products at GE Lighting, uncovers how lighting technologies can affect our sleep cycles

PSFK Labs october 25, 2016

The Keys For Exceptional Performance On And Off The Field

PSFK Labs' new report highlights five important insights for businesses to perform better than the competition

AI Today

Film Touchingly Portrays The Challenge Of Relying On AI To Combat Loneliness

Director David Wilson takes viewers on a journey of the benefits and ultimate deficiencies of replacing human interaction with robots

Travel Today

Delta Lets Flyers Track Their Luggage From The Airplane To The Airport

The airline's new app allows customers to see exactly where their baggage is throughout their journey

Food Today

Chef Turns Invasive Species Into Delicious Sushi

Creator Bun Lai is adapting strange new ingredients for his menu, which responds to the ecological impact of overabundant creatures in the local environment

Gaming & Play Today

Build Your Own Subway System In This Minimalist Game

Mini Metro lets you design your own fully functional transit network, simulating the flow of urban commuters with pared-down visuals

Work Today

Keyboard Designed To Help Women Use More Assertive Language

The device is a commentary on gender roles in the workplace, and features easy access to "power verbs" that help reinforce a habit of being direct in writing

Arts & Culture Today

Spanish Artist Dreams Up What Animals Would Look Like In Modern Clothing

Yago Partal's portraits depict the fantasized style preferences of creatures worldwide, from an Arctic wolf to a zebra

Fitness & Sport Today

New Data Technologies Make Hyper-Personalized Training A Reality

The Sports Debrief from PSFK Labs looks at how analytics tools are being developed to optimize human performance across all industries

Technology Today

IBM Watson Helps Grammy-Winning Producer Craft An EP

The computer system's data technology generated musical scores for Alex Da Kid's first solo project

No search results found.