McDonald’s Selling its Coffee in Supermarkets is No Dumb Move

In Featured on App, Marketing and Sales by Vaughn Highfield

McDonald's Coffee cup

McDonald’s, the global fast food giant, isn’t really known for its coffee. In fact, if I were to hazard a guess, I’d say that you’d think of Starbucks, Dunkin’ Donuts or Cafe Nero before you’d head on over to Maccy D’s for a cup of steaming Joe.

So, for McDonald’s to decide that it’s time to sell its ground coffee in stores seems incredibly weird. After all, who would buy the damn stuff?

Well, this is no dumb move from McDonald’s. In fact, it’s a stroke of marketing genus that not only has the potential to generate money in stores, but also some ancillary pocket change in the process.

Speaking at Bloomberg’s Big Ideas: 2014 Conference last week, McDonald’s CEO Don Thompson explained just why this was one decision that was just too good an opportunity for the company.

“We won’t sell, I don’t think, enough coffee in a retail space that it is going to become a major line item on the revenue stream of McDonald’s,” said Thompson. “But, by selling coffee in grocery stores and other outlets, what we’re also doing is marketing the brand.”

In case you didn’t already know, McDonald’s sells more coffee in the US than any other outlet. It seems stupid to not remind people about this fact by putting it in supermarkets.

Interestingly, as around 70 per cent of coffee is still brewed in-home, this presents a rather lucrative opportunity for McDonald’s further down the line. Potentially opening up a new revenue stream for the business that allows them to sell more of their products in supermarkets.

A bit like how Pizza Express expanded their restaurant brand into fresh, cook at home, pizzas.


[Image: upthesock – Flickr]

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