McDonald’s Corp. and Burger King Corp. are beefing up coffee sales with new coffee products this week, adding further fuel to the competitive coffee landscape largely dominated by Starbucks and Dunkin’ Donuts.
McDonald’s Corp. today is launching gourmet coffee in more than 650 restaurants in the Northeast. Restaurant operators have formed a deal with Green Mountain Coffee Roasters, Inc. to create a special blend under the Newman’s Own Organic Blend brand to restaurants in Massachusetts, Connecticut, Rhode Island, Vermont, New Hampshire, Maine and Albany, NY.
The organic coffee is available in regular or decaffeinated blends and retail for $1.19 for a small cup and up. Prices vary upon location. The new offering comes as a response to consumer demand, said Mark McBee, a franchisee who operates nine McDonald’s restaurants south of Boston with his wife, Janise.
“We are always looking at [our products],” McBee said. “We try to make sure we have the best quality products for our customers.”
The gourmet coffee appeals to McDonald consumers who demand “higher quality products,” he added.
McDonald’s will support the new product with a 13-day free coffee sampling event starting Nov. 11, of which the most of the more than 650 restaurants will participate, McBee said.
TV spots and radio support.
Rival Burger King is taking a different approach to coffee connoisseurs. The QSR created three strengths of “hard-working” coffee, BK Joe, to coincide with Burger King’s, “Have It Your Way” motto. Burger King coffee started rolling out over the last five months. The coffee products are in more than 85% of the company’s restaurants.
BK Joe is made from a blend of 100% Arabica coffee beans and is available in regular, decaffeinated and turbo-strength, which contains 40% more caffeine than regular BK Joe. P-O-P materials support. National TV spots are being planned.
“Our customers work hard, so BK Joe does too,” said Denny Marie Post, chief concept officer, Burger King Corp., in a statement. “They told us they wanted more control when they start the day, so we developed new BK Joe to give them the edge they need when they need it.”
The BK Joe products are available in 12 ounce to 20 ounce cups and retails for 99 cents to $1.39. TV spots support.
Despite McDonald’s and Burger King’s new products, Dunkin’ Donuts said it remains tops among consumers for coffee consumption.
“McDonald’s has been a competitor of ours for many years in the coffee market as well as breakfast sandwiches, and we are always keeping track of what’s happening in the marketplace,” said John Gilbert, VP-marketing, Dunkin’ Donuts, in a statement. “While we respect them as a competitor, we believe Dunkin’ Donuts is very well positioned for growth for the future.
“Here in New England, our customers are particularly passionate about Dunkin’ Donuts coffee,” Gilbert continued. “With all the choices that exist for customers for coffee, Dunkin’ Donuts continues to remain the No. 1 retailer of hot regular coffee-by-the-cup in America.”
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