Posted by Dale Buss on November 15, 2013 06:02 PM
McDonald's retains its long-term growth goals despite its troubles in 2013. But the chain certainly is tweaking how it plans to reach them, with new efforts ranging from selling McCafe coffees in supermarkets with Kraft to its first Happy Meal tie-in with the National Football League. And along the way, McDonald's is trying to figure out how it lost the "quick" in its quick-serve.
CEO Don Thompson said at the company's investor conference this week that McDonald's has suffered from an iffy consumer economy, and labor- and commodity-cost pressures. The company also has been hamstrung by its own poor execution in areas that have included the less-than-stellar sales performance of its steady menu of new Limited Time items, such as Mighty Wings chicken wings.
But the most problematic area for McDonald's may be that its US customer service has suffered recently, in part because it has introduced too many of those new menu items, too quickly, for its operations to adjust efficiently.Continue reading...
see you in court
Posted by Dale Buss on November 13, 2013 01:29 PM
It may be difficult to argue with both Starbucks and Kraft packaged coffee businesses at the moment: Starbucks' brand is busting out beyond the brand's own coffee houses, while Kraft is on the cusp of a potentially exciting new CPG opportunity with McDonald's McCafe brand.
The only thing is, it just cost Starbucks $2.7 billion to get to this point. That's how much an arbitrator has ordered Starbucks to pay Kraft's corporate sibling, Mondelez International, as a result of their failed CPG-coffee partnership that ended in a dispute. It'll take all of Starbucks' cash on hand plus more to make the payment to Mondelez.
Kraft first did the deal to distribute Starbucks-brand packs of coffee in 1998, and by 2010 it had grown to a $500 million-a-year business, the Wall Street Journal reported. But Starbucks accused Kraft of not doing a very good job of displaying Starbucks coffee inside stores and of otherwise doing a poor job of marketing the Starbucks brand. That critique came in spite of the sales growth and after giving Kraft credit for its "world-class" capabilities. Continue reading...
Posted by Dale Buss on November 1, 2013 06:11 PM
Well, it works for Starbucks. So why can't McDonald's also sell packaged versions of its McCafe coffee line in US supermarkets?
The struggling fast-food giant will begin testing just that idea next year in a deal with Kraft. The tests will include packages of whole bean and ground coffee as well as "single-cup" options, which typically include K-cups for Green Mountain Coffee Roasters' popular Keurig brewer. Test markets and pricing were not disclosed, Crain's Chicago Business noted.
"We want to work with McDonald's to help consumers enjoy McCafe premium coffee in the comfort and convenience of their own homes," Kraft Foods CEO Tony Vernon told analysts on a conference call, disclosing the test for the first time. Kraft will handle the marketing and distribution of the McDonald's brand coffee. McDonald's said in a statement it was "building on the momentum of our McCafe beverages in our restaurants by expanding these options," according to the publication.Continue reading...
Posted by Dale Buss on November 1, 2013 09:29 AM
Kraft and McDonald's team to sell McCafe packaged coffee.
FAA lifts most rules against use of electronic devices on flights.
AT&T explores acquiring Vodafone, reports say, but European outcry over NSA involvement hurts brand.
Air France seeks deep overhaul of Alitalia.
Amazon produces two original drama pilots.
Apple launches iPad Air.
Bonobos expands with new women's brand.
Buffalo Wild Wings' new pricing and service model builds confidence.
Century 21 handles "haunted houses" in campaign.Continue reading...
chew on this
Posted by Dale Buss on March 13, 2012 11:01 AM
With every turn of the menu, McDonalds becomes more like Starbucks becomes more like Jamba Juice becomes more like — well, you get the idea.
Apparently reacting specifically to the opportunity to compete with Massachusetts-based Dunkin' Donuts for the morning sweet tooth of New Englanders, McDonalds is expanding its breakfast lineup in its stores in the region to include baked goods: cheese danish, two kinds of muffins, banana bread, and vanilla scones. They join traditional standbys such as Egg McMuffins and recent additions such as oatmeal on the morning menu, but unlike those staples, the new bakery fare will be available at McDonald's all day.
The goods will be baked on-site at each of the McDonald's involved. "The fact that we bake them on the premises is a unique piece," he said. "We actually bake them — they're not frozen," Lou Provenzano, a franchise owner who operates 13 McDonald's locations in Eastern Massachusetts and Rhode Island, told the Boston Globe.Continue reading...
Posted by Anthony Zumpano on November 13, 2009 10:55 AM
Once Starbucks reached its saturation point (one location on practically every block), it had nowhere else to go but down – and that’s exactly where it went. Stores were underperforming, the stock price plummeted, and the brand was forced into a steamed-milk showdown when the McCafé coffeehouse concept began brewing front and off-center at most McDonald’s restaurants.
But less than two years after Howard Schultz returned as CEO, following an eight-year hiatus, Starbucks’ future looks as sweet as a Strawberries & Crème Frappuccino.
Every brand experiences growing pains, and Starbucks, which opened new locations at an arguably pathological rate, was no exception. Speaking at Thursday’s Ernst & Young Strategic Growth Forum, Schultz felt his brand lost its focus after 15 years of infallibility: “Somehow, along the way, the level of that feeling” – the love inspired by a people-based business – “got somewhat blurred by success.”Continue reading...