The Homa Files

TakeAway: A new study found that fickle coffee drinkers are more loyal to Mickey D’s than they are to Starbucks or Dunkin Donuts. 

Winning customers and keeping them loyal is increasingly important for restaurant chains in the U.S. With little room for expansion, difficulty attracting diners hurt by the economic downturn and pressure from rising commodity costs, competitors are focused on battling for market share.

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Excerpted from WSJ, “Tracking the Loyalty of Coffee Drinkers” By Julie Jargon, April 14, 2011

The contest for coffee drinkers intensified about three years ago, when McDonald’s introduced specialty coffee drinks nationwide.

Now, in addition to Egg McMuffins and hash browns, McDonald’s customers can order cappuccinos, lattes and mochas, while Starbucks and Dunkin’ Donuts have added a variety of breakfast foods to their menus.

Coffee sales at Starbucks, which garners the bulk of its revenue from beverages, still outstrip those at McDonald’s, which claims 6% of its U.S. revenue from coffee drinks.

McDonald’s may be more attractive because it generally offers lower prices than its rivals.

For example, in Chicago McDonald’s charges $1 for any size of brewed coffee, while the smallest size at Dunkin’ costs 75 cents more, and 50 cents more at Starbucks.

Edit by AMW 

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This entry was posted on April 27, 2011 at 6:22 am and is filed under Beverages - Soft Drinks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.