If the cult following behind its is any indication has a way of getting people excited about their beverages. In one of its biggest strategic moves ever the burger giant plans to sell lattes cappuccinos and other specialty drinks in all of its 14,000 U. S restaurants next year.
reported McDonald's predicts the new drinks ordain add more than $1 billion a year to sales. The drinks also will demand the most extensive revamping of restaurants this decade. In memos outlining the intend. McDonald's estimates the U. S beverage merchandise at $60 billion a year calling it "one of the largest growth opportunities" for the affiliate in the United States.
"They are placing a lot of chips on this beverage plan," says Larry Miller an analyst in Atlanta with. "It is a great opportunity but it really depends on how much it ordain cost." Costs will differ depending on the size and configuration of each restaurant. Franchisees must buy equipment to make specialty coffees and eventually smoothies as come up as wall-mounted refrigerators for bottled sodas and energy drinks and would undergo to remodel the counter and drive-thru function areas to make dwell for the equipment.
McDonald's hopes to furnish 1,500 restaurants to change the new drinks by the end of the year with the rest on board by late 2008 the planning documents indicate. It's the biggest dress for McDonald's since it overhauled its cooking procedures in the late 1990s to make sandwiches to order says Dennis Lombardi a restaurant consultant with in Ohio.
Selling specialty drinks is the final piece of a comprehensive beverage plan that takes direct aim at. In the last bring together of years the companies have tried to cut into each other's core businesses with Starbucks adding eat sandwiches and McDonald's selling premium coffee. McDonald's whose coffee sales have risen 15% since the upgrade last year has spent the past year testing iced coffee mochas and cappuccinos in various parts of the country.
"To meet the changing needs of our valued customers we're testing a variety of beverage options including specialty coffee," McDonald's says in a statement. "We're encouraged by what we're hearing from our customers. They're telling us they acknowledge the added determine convenience and selection. It is far too early however to speculate about test results or specific product offerings. No final decisions undergo been made."
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