Slog
News & ArtsTuesday, May 18, 2010
Chow / Media / Retail I Was Drawn In by the USA Today Headline
Posted by David Schmader on Tue, May 18, 2010 at 3:15 PM
I considered slogging the story with the title "Today in the Newsworthy Hopes of McDonalds Marketing Executives!" and featuring this chunk:
The nation's largest fast-food chain is on a multibillion-dollar mission to become a serious beverage juggernaut...In the process, it's turning the fast-food world upside down.
But then I noticed the story gets kind of creepily interesting:
As cola sales fell, McDonald's executives grew frustrated watching folks pass through the drive-through — or walk into the restaurant — bringing energy drinks, fancy coffees or smoothies purchased elsewhere to have with their meals, says John Sicher, publisher of Beverage Digest. "McDonald's decided to become a beverage destination."
On willfully becoming a beverage destination:
Expanding the beverage line into pricier drinks is seen as a way to boost check averages as well as lure customers to McDonald's for snacks during slower parts of the day, such as afternoons.There is still plenty of room for McDonald's to fail as a beverage kingpin — some are even certain it will — but the prize is so potentially huge that McDonald's, which has few other growth options, can no longer ignore it.
"How big is big?" poses Karen Wells, vice president of U.S. strategy & menu at McDonald's. "It's really big when you have $153 billion out there for the taking," she says, in reference to the amount Americans spent on non-alcoholic beverages last year.
McDonald's is following the money. And consumer tastes. Specialty coffee is a $13 billion market in the USA, says the Specialty Coffee Association. Coffee sales at McDonald's have jumped double digits every year since 2006, when it rolled out premium coffee. So why stop there?
"The sky is the limit," says Wells, pointing straight upward.
I hold every single person who's ever carried a smoothie into a McDonalds personally responsible for this.
2
I thought you weren't allowed to bring outside food and drink into McDonald's.
Next step is a full bar at Mickey D's. Think of the possibilities! McTinis. Big Mac on the Beach. The Grimace (vodka and grape soda).
Next step is a full bar at Mickey D's. Think of the possibilities! McTinis. Big Mac on the Beach. The Grimace (vodka and grape soda).
3
If memory serves, the last time I was inside a McDonald's was in 1974. But booze - yeah, now that just might work.
5
Actually, this is a textbook example of why the American-style free market economy is ludicrous bullshit that is harmful to people. Even something as fiscally successful as McDonalds can't succeed without still more continued growth? What happens after cold drinks? Are they going to eventually encroach on pizza deliveries? Furniture deliveries? Private police forces? Military service?
Fuck you, Wall Street.
Fuck you, Wall Street.
6
Don't blame the smoothie people. It all started when Starbucks decided to charge over a dollar for coffee. The beverage world then realized people would be fine with spending much more for their $0.05 raw material product than they've been charging, and profits started pouring in.
I'm just waiting for them to catch on the the $2 cupcake trend. Or maybe pass everyone up and start charging $1.50 for gormet ketchup.
I'm just waiting for them to catch on the the $2 cupcake trend. Or maybe pass everyone up and start charging $1.50 for gormet ketchup.
8
$153 billion in non-alc beverage sales in the US?
$13 bil of that is specialty coffee?
you're right, the culprit is Redbull, not Stumptown.
$13 bil of that is specialty coffee?
you're right, the culprit is Redbull, not Stumptown.
9
It'll be interesting to see how this works. If they can sell that crap cheap, it'll work.
@ 2, today's bend-over-for-the-customer chain business will never do anything to risk pissing off a paying customer, no matter how rude that person is being. Hell, bring in your seven layer burritos, so long as you at least buy some mcnuggets here too.
@ 2, today's bend-over-for-the-customer chain business will never do anything to risk pissing off a paying customer, no matter how rude that person is being. Hell, bring in your seven layer burritos, so long as you at least buy some mcnuggets here too.
10
Not surprised.
Once upon a time, I worked at a McDonald's for about 6 months. They make almost no actual profit from their burgers. Almost all their real profit is derived from sales of fries and soda. Slumping drink sales probably really hurt. Efforts to increase drink sales was sure to follow.
Once upon a time, I worked at a McDonald's for about 6 months. They make almost no actual profit from their burgers. Almost all their real profit is derived from sales of fries and soda. Slumping drink sales probably really hurt. Efforts to increase drink sales was sure to follow.
11
I'm sticking with Dick's for the SIFF month.
That said, I still miss those Cajun Chicken Sandwiches.
That said, I still miss those Cajun Chicken Sandwiches.
13
I have this terrible image of sad, fat Americans drinking smoothies and frapuccinos with their Big-Macs. Is there no limit to the amount of shit people will put into their mouths?
14
Why are people complaining about the health value of coffee or smoothies or the price mark-up on them when this is in comparison to soda, which is massively unhealthy and has a huge price mark-up? A shift from one high-priced beverage with health concerns to another hardly seems like something to make a fuss over. And smoothies can even potentially be healthful, depending on what is in them.
15
Don't drink much coffee, but a McDonald's is the only reasonably priced thing near where I work: so hot coffee in the winter, and iced coffee (with non-fat vanilla flavoring) if the weather is extreme either way, and I need to be warmer or cooler.
Unfortunately, McDonald's coffee tastes burnt to me (is that an attempt to make it chicory like, or only crappy coffee?), unless buried under milk and too-salty vanilla.
But mostly I drink water, "flavored" with powered vitamin C: inexpensive and better for my health.
Unfortunately, McDonald's coffee tastes burnt to me (is that an attempt to make it chicory like, or only crappy coffee?), unless buried under milk and too-salty vanilla.
But mostly I drink water, "flavored" with powered vitamin C: inexpensive and better for my health.
18
I love poor people in America, you can shovel all kinds of shit down there throats and they'll come back for more.
20
How about Roy Street Big Macs and McNuggets? Serving the same food but with a more neighborhood feel.
21
Mickey D's seems to already be doing this in foreign countries. I'm surprised to see that they're just now thinking about incorporating it into domestic stores.
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