McDonald's names S&D Coffee top supplier

McDonald's USA has named S&D Coffee Inc. its 2007 Supplier of the Year.

Concord-based S&D sells premium roast coffee and iced tea to the fast-food chain.

The award is presented annually to the food, paper or product supplier that makes the most significant contribution to, McDonald's U.S. business results. It recognizes commitment to quality and food safety, innovation and customer service.

S&D has more than 70,000 customers nationally, including several leading restaurant chains.

Source: MSN Money

McDonald's Coffee Bars to Take on Starbucks: WSJ

by Reuters

McDonald's is set to launch coffee bars with "baristas" serving cappuccinos and lattes, moving into direct competition with global coffee chain Starbucks, the Wall Street Journal reported on Monday.

McDonald's will install coffee bars at its 14,000 U.S. stores, incorporating theatrics similar to Starbucks' counters, displaying espresso machines and having baristas prepare drinks, the report said.

The report, citing internal documents from 2007, said the move will add $1 billion to McDonald's annual sales of $21.6 billion. McDonald's will also sell smoothies and bottled beverages, it said.

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McDonald's coffee aid perks up its franchisees

By Mike Hughlett | Tribune staff reporter

McDonald's Corp. confirmed Friday that it will support U.S. franchisees by paying for up to 40 percent of the costly restaurant renovations needed for the rollout of its specialty coffee program.

McDonald's foray into specialty coffees, smoothies and other upscale beverages constitutes one the company's largest product introductions ever. And it will be expensive, costing franchisees around $25,000 for equipment and up to $75,000 to retool the restaurants to handle the new beverages.

Some franchisees have worried whether the potential payoff for the beverage offensive is worth the big investment, one of the biggest they have ever been asked to make by McDonald's, the Tribune reported this week. Franchisees own about 85 percent of McDonald's nearly 14,000 U.S. restaurants.

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The new Mr. Coffee

November 20, 2007
BY CHERYL JACKSON Staff Reporter/cjackson@suntimes.com

McDonald's Corp. is preparing to offer a line of specialty coffees in its restaurants. By the end of 2009, the company will be selling mochas, lattes and cappuccinos throughout the U.S. as it tries to take a gulp of the $12 billion-a- year speciality coffee business. Here's a cup-to-cup comparison of the market leader and the wannabe:

U.S. LOCATIONS

Starbucks: About 10,700

McDonald's: About 13,000

PRICE

Starbucks: 12-ounce Mocha: $2.75-$3.45

McDonald's: About $2.49

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What drives coffee choices?

Dan Shearer
The Arizona Republic
Nov. 14, 2007 12:00 AM

Only in my weaker moments can I pay four bucks for a cup of coffee.

And what others consider a status symbol is to me nothing more than proof that we've bought into the sales pitch that the Starbucks experience is somehow worth a small fortune. And for many, it is.

But Starbucks took it in the shorts in March when Consumer Reports told the world that McDonald's coffee was not only cheaper but also better.
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A few months later, McDonald's launched its own line of iced coffees.

But are they better? Frankly, no.

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McDonald's out to win the coffee wars

By Michael Hughlett | Tribune staff reporter

In a significant new product offensive, McDonald's Corp. said Tuesday it will move full-scale into the specialty coffee market, serving up mochas and cappucinos that it says will rival those made by coffee houses.

The Oak Brook-based company has been testing specialty coffees in about 800 restaurants this year, and plans to build out the business nationally, Don Thompson, president of McDonald's USA said at the company's annual analysts meeting.

The company essentially wants to make coffee more than something that customers order with their food.

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