The coffee is becoming necessary for people every day. Offering coffee is an opportunity for the McDonald to make the market share increase. It is not enough to only sell breakfast without coffee; therefore, McDonald needs McCafe which is a full- service bar to provide coffee to take competitive advantage for the breakfast and snack- time sales in the market.
Analysis of the situation
Foodservice industry occupies an important position in Canada’s GDP, which summed 32.7 billion and accounted for 4.3 per cent of Canadian GDP. The lion’s share of foodservice industry is the restaurant sales especially the fast food which is 60 per cent in restaurant sales. In recent year, franchising and chain stores have increased as grown as fast, using mergers, acquisitions and alliances are kinds of strategically method to operate ...view middle of the document...
For example, some people like sitting a comfortable place to taste their coffee slowly, but some people want to buy quick coffee to save time.
There are three major competitors, one of them is Wendy’s, Wendy’s has its unique menu of burgers, fries and healthy alternatives, and because they sold a large number of foods in both native and international, their revenue and net income had risen. Another competitor is Burger King. People love it because of their cheap food, fast service and clean environment. The last one is KFC, Pizza Hut and Taco Bell. The three famous restaurants are owned by Tricon Global Restaurants.
Identification and evaluation of alternatives
There are two alternatives;
1. Position McDonald as specialty coffee
The equipment is cheap, and save space
The machine is easy to use, no need to train
Convenience for customers who need quick coffee
It is fast to brewed coffee, and is the same number of coffee beans in the prepackaged bags
McDonald is a fast food restaurant, therefore people will not expect for their coffee
Limited type of coffee
Not so comfortable environment
2. Position McDonald as Brewed coffee store
High quality coffee
Different types of coffee can be offered
Higher cost for different coffee beans
Long time to make coffee
Need to train staff to make coffee
Decision, course of action and implementation
The decision is to have a specialty coffee. On May 26, 2001, McCafe Burlington opened its doors. The McCafe prototype restaurant was designed as an addition to the front counter at the Millcroft location in Burlington, Ontario. In the first six months of starting the specialty coffee, they sold the number of coffee, and received good appraisal from new customers.