Mcdonald’s and the Mccafe Coffee Initiative

The coffee is becoming necessary for people every day. Offering coffee is an opportunity for the McDonald to make the market share increase. It is not enough to only sell breakfast without coffee; therefore, McDonald needs McCafe which is a full- service bar to provide coffee to take competitive advantage for the breakfast and snack- time sales in the market.

Analysis of the situation

Industry Background:

Foodservice industry occupies an important position in Canada’s GDP, which summed 32.7 billion and accounted for 4.3 per cent of Canadian GDP. The lion’s share of foodservice industry is the restaurant sales especially the fast food which is 60 per cent in restaurant sales. In recent year, franchising and chain stores have increased as grown as fast, using mergers, acquisitions and alliances are kinds of strategically method to operate the commercial restaurant. As the similar as the foodservice industry, coffee industry use the same method to occupy the market. Compare with the largest coffee sold, which is the Tim Hortons, McDonald’s only has 7.1 per cent. However, different coffee makers have their individual views for running coffee; such as, many coffee house target reliability, quality and brand image, but McDonald’s coffee is for fast and convenient, and drive through service is one of the methods to sell coffee fast. The coffee has been sold by increasing demand more than before, and variable people have their own requirement for the coffee. For example, some people like sitting a comfortable place to taste their coffee slowly, but some people want to buy quick coffee to save time.

Competitors:

There are three major competitors, one of them is Wendy’s, Wendy’s has its unique menu of burgers, fries and healthy alternatives, and because they sold a large number of foods in both native and international, their revenue and net income had risen. Another competitor is Burger King. People love it because of their cheap food, fast service and clean...