Mccafe Case Study Essay
Alyssa Kelly Case Preparation for Discussion (McCafe)
1.) The central problem in the case is McDonald’s reputation for its coffee, and McDonald’s competitor, Tim Hortons great success with its coffee and donuts. Ralph Sgro is analyzing opportunities to become better, he came across, McCafe, for McDonalds Canada, which he thinks would send them over the top for success. McDonald’s needs to gain back competitive advantage with coffee, breakfast, and snack-time sales.
2.) I do believe that McCafe has resolved the losses in breakfast sales because McCafe has been very successful in the U.S and in other countries. Canada’s quick service meals (fast food) is accounted for 60% of the industry, making fast, lower price food more popular, an industry that has a lot of potential growth. Canada having McCafe, will grow along with the Canadian …show more content…
McCafe has a brand that stands behind McDonald’s. It is made for working adults who enjoy coffee with a quick and cheap service, but still sophisticated.
4.) Coffee retailers and fast-food competitors will be intimidated by McCafe and will probably feel the need to reevaluate their business plan, such as products and services and strategies, so they can gain a competitive advantage again. The competitors will then find substitutes for McCafe that will still be appealing to consumers or even differentiate themselves and take a new route.
5.) McDonalds has a standardized structure that has allowed them to produce coffee at a fast sufficient pace. Being able to hire workers that are not just skilled in coffee, but at much more, making the workers more diverse and produce a better work environment for themselves and customers. They have a very effective work mentality that makes them a “threat” and growing
1.) The central problem in the case is McDonald’s reputation for its coffee, and McDonald’s competitor, Tim Hortons great success with its coffee and donuts. Ralph Sgro is analyzing opportunities to become better, he came across, McCafe, for McDonalds Canada, which he thinks would send them over the top for success. McDonald’s needs to gain back competitive advantage with coffee, breakfast, and snack-time sales.
2.) I do believe that McCafe has resolved the losses in breakfast sales because McCafe has been very successful in the U.S and in other countries. Canada’s quick service meals (fast food) is accounted for 60% of the industry, making fast, lower price food more popular, an industry that has a lot of potential growth. Canada having McCafe, will grow along with the Canadian …show more content…
McCafe has a brand that stands behind McDonald’s. It is made for working adults who enjoy coffee with a quick and cheap service, but still sophisticated.
4.) Coffee retailers and fast-food competitors will be intimidated by McCafe and will probably feel the need to reevaluate their business plan, such as products and services and strategies, so they can gain a competitive advantage again. The competitors will then find substitutes for McCafe that will still be appealing to consumers or even differentiate themselves and take a new route.
5.) McDonalds has a standardized structure that has allowed them to produce coffee at a fast sufficient pace. Being able to hire workers that are not just skilled in coffee, but at much more, making the workers more diverse and produce a better work environment for themselves and customers. They have a very effective work mentality that makes them a “threat” and growing