[LINK] "McDonald’s Wants to Be Your Coffee Shop"

[rfmcdonald]

I've been following the evolution of McDonald's for some time, not least because of its surprisingly good coffee. Venessa Wong's Bloomberg BusinessWeek article suggesting that coffee is going to be an integral part of the McDonald's experience as the fast-food restaurant tries to take over a chunk of the cafe market makes sense to me.

Some have ruminated about the deeper meaning of McDonald’s (MCD) free coffee promotion, which runs through April 13. Here’s one more thought: It’s another attempt to promote the chain as a so-called third place—that daily destination away from home and away from work, and a concept that Starbucks (SBUX) essentially owns—via its McCafé beverage line.

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Of course, McDonald’s coffee giveaway is also part of the company’s ongoing efforts to keep people hooked on its breakfast while fast-food restaurants such as Taco Bell (YUM) launch morning menus, and also to drum up interest in McDonald’s bagged coffee, which is coming to grocers. But there’s a decided push to market McCafé as a social product: The “Make Friends with McCafé” sampling events include live music (Karmin performed in New York) and comedy.

The question is, what’s friendship have to do with McCafé? Consumers already head to McDonald’s for quick, on-the-go breakfasts, lunches, and dinners, so it seems the chain now wants to develop a strong affiliation with other occasions: an afternoon break or a leisurely meet-up with friends—the kinds of moments you probably associate with Starbucks. Following in Starbucks’s footsteps, McDonald’s brought in expensive espresso machines and Wi-Fi and introduced seasonal hot beverages.