Mc Café is the dark horse of the ~US $ 60 Bn coffee retail chain business which is growing at a healthy pace and is well poised to reach over US $ 140 Bn by 2025 with major growth driven from the developing parts of the world. Let’s find out how? (1/10)
Starbucks the well-known leader in the space has been growing phenomenally since its inception in 1971. With over 31,000 stores across 80+ markets, Starbucks sits comfortably at the top with revenue of ~US $ 25 Bn annually. (2/10)
The immediate competitor in this category is Costa coffee with over 4000 stores globally and a revenue of ~ US $1.6 Bn annually which is not even 10% of Starbucks. So, should Starbucks be worried about any competition? (3/10)
The answer is it definitely should be! Mc Café has been silently eating into Starbucks pie and growing at a much faster pace. Mc Donald’s started the first Mc Café in Australia in 1993 but it was not before 2001 that they started its expansion in US (4/10)
Fast forward, today McD operates has over 38,000 stores out of which ~15000 stores have Mc Café outlets, which makes it the second largest coffee chain after Starbucks not just in no. of stores but also by revenue (5/10)
Roughly 15% of McD's total revenue is attributed to Mc Café which comes to ~US $ 3.5 Bn which is is twice that of Costa coffee which has been in the game for much longer (est. 1978) (6/10)
McD brilliantly leveraged its scale to quickly make a dent in this industry, and started emerging as a threat to the incumbents and has quickly eaten into the pie of Starbucks, Costa, Dunkin etc. and it this is just the start (7/10)
For instance, in India itself there are 190 Mc Café outlets compared to 130+ Starbucks and McD further plans to make all its 300+ stores to have Mc Café outlets by 2022 and with a similar pace globally, we just need to wait and watch it grow! (8/10)
Things which have basically worked in Mc Café’s favour are affordability, quick service time and a wider menu option (due to associated McD offerings) which have been the key pain points of Starbucks (9/10)
That's the reason why Mc Café is at the core of McD’s strategy to grow further by acquiring new customers with its offerings and ready to disrupt the industry, thus placing it in a good position to give Starbucks a run for their money! (10/10)
#McDonalds #coffee
#McDonalds #coffee
