Melissa Allison follows the world's biggest coffee-shop chain and other Seattle caffeine purveyors.
McDonald's takes on Starbucks in Europe, Business Week reports
Posted by Melissa Allison
For years, McDonald's dawdled over its McCafe concept. It had a few in place, but refused to say when or whether they would become commonplace.
This year, the burger chain finally rolled out the concept nationwide. Now it's so hot on the idea that it wants 1,100 McCafes in Europe by the end of the year, Business Week reports.
That would rival Starbucks' nearly 1,200 shops in Europe, and "McDonald's strategy of opening McCafes in existing franchises gives it a leg up over the Seattle-based java king," the magazine said. "A stand-alone Starbucks in Europe requires an investment of $350,000-plus, at least triple what a McCafe costs, says Jeffrey Young, managing director of London management consultancy Allegra Strategies."
McDonald's is even going for Italy, a country Starbucks has avoided. The first Italian McCafe opened in Milan in 2005, Business Week said, and there are now 65 across the country.
On the flip side, McDonald's has no plans for McCafes in Great Britain, a market where Starbucks has 700.
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