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					McDonald’s Takes on Starbucks

           Cason W.
           Kadie W.
           Jason W.
           Benny Y.
         History of Starbuck’s
• Largest coffee house
• Founded in 1971 in Seattle, WA.
• 15,011 stores in 42 countries
• $7.76 billion revenue
• Took off when chairman Howard Schultz
  visited cafes in Italy
• “third place”
• 16th best company in the US to work for
        History of McDonalds
• Founded by Ray Kroc
• April 15 1955
• Des Plaines, IL
• Known for cheap and fast burgers with
  convenient drive-thru
• 31,000 locations worldwide 120 countries
• 54 million customers per day
• $21.58 billion revenue
         Setting of Starbucks
• Place to hang out between work and home
• Added drive through and breakfast
  sandwiches
• Wi-Fi enabled
• Upscale atmosphere
         Setting of McDonalds
• Drive-thru oriented
• Remodeling environment to be more fancy
• Coffee is being made in the counter unlike the
  other food
• Incorporating Wi-Fi
• Cushioned chairs and tables
• More friendly baristas
 Why tap into the Starbucks business?
• Starbucks purchases 300 million pounds of coffee
  beans in 2006
• Flattened carbonated drinks sales
• Increase consumption of coffee and iced tea
  beverages
• People are concerned about their health
• McDonalds estimates that their will be $1 billion
  in revenue
• Causes people to think they are more upscale
                Why Now?
• Decrease traffic in Starbucks
• Starbucks blames the economy for decreased
  sales
• McDonalds' coffee is $0.60-0.80 cheaper than
  Starbucks
                  “McPlan”
• Testing in 2005
• Interviewed Starbucks customers to find out
  what they have
• Decided to hire friendlier baristas to make the
  coffee, to be very knowledgeable and face the
  customer when making the drinks
• Have espressos on the counter
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posted:10/16/2012
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