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Early sales figures for McDonald's Corp.'s new specialty coffees in its two test markets, Michigan and Kansas City, Mo., underscore the challenge the burger chain faces as it tries to compete with Starbucks, according to Crain's Chicago Business.
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Editor's Insight: This article notes that McDonald's results to date have not met expectations. This doesn't mean that they won't, but the investment marked a bold initiative and it certainly remains to be seen how successful it will be.
The difficulty that McDonald's is having in specialty coffee signifies the degree to which the specialty coffee industry has established a franchise for itself. McDonald's recognized this, which is why it undertook such an extensive investment in trying to expand into that franchise.
This underscores the coffee service operators have to establish in the specialty coffee franchise by partnering with the established leaders, most of whom offer OCS products. 05-12-08 by Elliot Maras
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