Who Will Rule the Roast?

Now-a-days, Starbucks isn’t the only place you can go to grab a cup of joe. McDonald’s McCafés can now be found all over the globe offering a multitude of delicious, caffeinated beverages. This coffee chain was created in Melbourne, Australia in 1993. Ten years later, in 2003, it grew to be the largest coffee shop brand not only in Australia, but in New Zealand too!

If you just happen to be walking down Rue Linois in Paris, you can take a coffee break at one of McDonald’s 200 McCafés opened in Europe. The cafés are established inside existing restaurants, so you can still grab some breakfast, but now coffee has a separate counter. This approach saves McDonalds the 350,000–plus dollars that Starbucks spends to open a new branch. With the number of branches already existing and the hopes of opening an additional 1,100 cafés by the end of the year, McDonalds will give Starbucks a good run for their money.

While many Starbucks customers are loyalists, more and more are following the trail of coffee grounds to a McCafé shop. Why? New locations, like the one in Munich, Germany, feature an inviting fireplace plus three terraces with a view of the Alps. Furthermore, McCafés prices are lower than those at Starbucks. For example, in Paris, a McCafé espresso costs $2.50, compared to it’s competitor at $2.80. McDonald’s lower prices paired with the cozy furnishings and enough space for a mother with children, makes the franchise even more inviting.

However, you won’t find both competitors in all of the same places. Starbucks avoided establishing branches in Italy, but McDonalds dove in head first. They opened the first McCafé in Milan in 2005, and today there are 65 shops across the country! Not to be outdone, Starbucks has 700-plus stores in Britain, where you won’t find any of McCafé’s golden arches. Will McDonalds be able to ditch its reputation as a fast-food chain and take on a new image?  Or will Starbucks continue to be the king of coffee? As both businesses continue to grow, we will see who comes out on top.