McDonald’s takes battle to ailing Starbucks
McDonald’s, the world’s largest fast food company, has taken a none-too-subtle swipe at Starbucks in their latest US ad campaign.
Starbucks, which had been a phenomenon with sensational growth rates for over a decade, has been symbolic of the downturn with a fall from their lofty heights. In Australia, they cut over two-thirds of their stores in August after announcing the closure of 600 underperforming outlets in the US in July. They still maintain their position as the largest coffee chain in the world with around 15,000 stores but are finding competition in their most lucrative market, the US, becoming tougher.
McDonald’s, which has been looking to diversify their offering in recent years with the ‘healthy choice’ menu and a greater focus on improving their coffee-related beverages, has placed billboard ads in the original hometown of Starbucks, Seattle, promoting their McCafe outlets. Over 100 have been put up with comments such as “four bucks is dumb” and “large is the new grande” – a clear dig at Starbucks.
McDonald’s called it “a light-hearted, fun approach to our brand,” in a statement released last week, but it hasn’t been well received at Starbucks.
“Comparative campaigns are all well and good but only when they’re credible and authentic. If the claim is not supportable or the tone is off, you risk losing credibility,” Deb Trevino, Director of Global Communications for Starbucks, told CNN. “We will not enter into a tit-for-tat. Our customers are interested in more than just the coffee, they come for the experience.”
I don’t go to Starbucks for Coffee alone. In fact I only go to cafe’s and buy anything to pay rent for the time I spend in that space. If McDonald’s wants to compete, they need to add cushy chairs, lower the lighting, get rid of the thugs, put on soothing music, provide a free wifi connection, and on and on. McDonald’s is good for fast food, period. People that buy coffee from Starbucks strictly for the coffee are going to switch. Those that go for the place and sense of community are not going to go to McDonald’s. I can already do ten things in my car, why do I want to drink an espresso there?
In response to Nathan’s comment, where have you been hiding? All the McDonald’s I’ve been to in the past two years have been well renovated, fitted with contemporary decor, comfortable cushion seats with ottomans, real wooden features, the latest magazines, lower levels of artifical lighting (with more open space and natural light flowing through) and impressive pendant lights, communal tables and of course free wifi. So go and check it out 🙂
McDonald’s is smart for adapting high-end coffee to a slow economy, but still, their McCafe coffees aren’t a whole lot less than Starbucks