McDonalds is advertising free small latte during breakfast hours in the Seattle market at least (maybe yours too, but this of course is home to Starbucks). I shall partake and critique.
Many doubt McD can beat Starbucks. I believe McD will cut substantially into Starbucks. Although the maybe half-dozen times in my life I made a purchase at McD, I've never found food in the bag, but McD will deliver what the customers want.
I would run Starbucks farther upscale in response. More money for less work. Close 1/2 of the Starbucks stores. Put fireplaces in every store left ( new technology has live flame but no exhaust). Starbucks is going downscale. They will be slaughtered if they stick to that strategy.
But nobody asked me.
Tuesday, April 8, 2008
Free Is the New Price Point - McD Division
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