1. McDonald’s Takes on Starbucks
Cason W.
Kadie W.
Jason W.
Benny Y.

2. 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

3. 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

4. Setting of Starbucks Place to hang out between work and home
Added drive through and breakfast sandwiches
Wi-Fi enabled
Upscale atmosphere

5. 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

6. 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

7. Why Now? Decrease traffic in Starbucks
Starbucks blames the economy for decreased sales
McDonalds' coffee is $ cheaper than Starbucks

8. “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

9. Questions or Comments