McDonald’s plans McCafe revamp to challenge rivals

NEW YORK: McDonald’s Corp, losing ground in its battle for the nation’s coffee drinkers, is planning to shake up its McCafe brand — part of a bid to challenge Starbucks Corp and Dunkin’ Donuts.

The company will reintroduce the McCafe concept next year, about eight years after it debuted nationwide. The push follows efforts to upgrade its java and get more of its beans from sustainable sources, mimicking a move by its Seattlebased rival.

“We’re excited about the McCafe brand and what it can do to complement our food offerings,” said Kristy Cunningham, United States senior vice-president of strategy and insights. The new McCafe campaign will include special deals, more seasonal beverages and increased marketing of the chain’s coffee rewards programme, she said.

Coffee is still a booming business in the US, but fast-food companies haven’t been able to capitalise on much of the growth.

Sales at burger chains rose 3.3 per cent last year, compared with a 10 per cent jump for coffee cafes, according to research firm Technomic. Though McCafe generates US$4 billion (RM17.8 billion) annually in US sales, it could better cater to customer needs, said Cunningham.

“McCafe is a very important piece,” he said. “It gives us the chance to follow what the customer is really looking for.” Bloomberg