Starbucks Down 77%, as McDonald Coffee Gets Great Reviews
Last year and this year, the company had closed approximately 800 stores in the U.S. In the second quarter of this year alone, the company had closed 123 stores. In the second quarter of this year alone, the company spent 152 million in restructuring costs, which were associated with the closing of these stores.
Life is not easy for Starbucks. McDonald's coffee is getting great reviews across the nation.
Qsrweb (Quick Service Restaurant News & Trends), which is known for reviewing quick service restaurants around the nation, conducted a review that compared McDonald's coffee with Starbucks coffee. They issued a report comparing the Vanilla latte, Cappuccino and Mocha from the two companies.
Their report indicated that McDonald's Cappuccino received a 4 in their rating, while Starbucks Mocha received just a 2. Their report indicated that McDonald's Vanilla latte received a 4, while Starbucks Vanilla latte received just a 3. Their report also indicated that McDonald's Mocha received a 6, while Starbucks Mocha received just a 1. They also reported that McDonald's coffee is also cheaper, when to compared to Starbucks. Qsrweb concluded that McDonald's McCafe won the review.
Many former customers of Starbucks have been seen lining up at McDonald's for coffee, in the recent times. This is not good news for Starbucks, whose coffee is high priced, sometimes as high as the cost of a take-out lunch. In this economy, not many may want to pay such high prices for a coffee, when they can get a better quality coffee at McDonald's, at lesser price. That would explain the 77% earnings drop and 800 store closures at Starbucks.
Ref:
http://www.qsrweb.com/article.php?id=13868&na=1
http://orlando.bizjournals.com/orlando/stories/2009/04/27/daily34.html?ana=yfcpc
Published by Raj
I am an Information Technology Professional , living in Long Island and working in NYC. I am also the NYC Organizer and team lead for http://www.2012draftsarahcommittee.com/ Some of my other writings... View profile
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4 Comments
Post a CommentIf Starbucks could manage to charge less than the exhorbitant $4 and $5 for their specialty drinks, they'd have more business. Restaurants just don't get it. If they'd keep their prices low, they'd make their cash up in the higher number of customers.
I don't drink coffee and could never understand how people spend so much on it!
Down with Starbucks, up with Pete's
Not that I want to see Starbucks fail, as they are one of the few food service companies that offer benefits to their employees, but when you add up the calories AND the cost, only people with money to burn regularly patronize Starbucks. As for the MickeyD coffees, they too are calorie laden and cost way more than a regular cuppa joe.