# data[].attributes.attachment_caption
Statista. (February 4, 2020). At which of these stores do you usually buy your coffee to go? [Graph]. In Statista. 

# data[].attributes.headline
Reason #1: According to recent data, people prefer to get their coffee from Starbucks more than any other coffee shop. 

# data[].attributes.subject
Reason #1: According to recent data, people prefer to get their coffee from Starbucks more than any other coffee shop. 

# data[].attributes.headline
Reason #2: Starbucks' coffee is of higher quality and is attracting more upscale customers as the source of desirable drinks. 

# data[].attributes.subject
Reason #2: Starbucks' coffee is of higher quality and is attracting more upscale customers as the source of desirable drinks. 

# data[].attributes.attachment_link.readable_text
McDonald's, losing ground in its battle for the nation's coffee drinkers, is planning to shake up its McCafe brand - part of a bid to challenge Starbucks and Dunkin' Donuts.

The company will reintroduce the McCafe concept next year, about eight years after it debuted nationwide. The push follows efforts to upgrade its java and get more of its beans from sustainable sources, mimicking a move by its Seattle-based rival.

"We're really excited about the McCafe brand and what it can do to complement our food offerings," Kristy Cunningham, U.S. senior vice president of strategy and insights, said in an interview. The new McCafe campaign will include special deals, more seasonal beverages and increased marketing of the chain's coffee rewards program, she said.

Coffee is still a booming business in the U.S., but fast-food companies haven't been able to capitalize on much of that growth. Sales at burger chains rose just 3.3 percent last year, compared with an almost 10 percent jump for coffee cafes, according to research firm Technomic. Though McCafe generates $4 billion annually in U.S. sales, it could better cater to customer needs, Cunningham said.

Starbucks and Dunkin' Donuts have attracted customers with high-margin espresso, lattes and mochas. Though McDonald's offers a wide range of coffees these days, it hasn't become as much of a go-to source for upscale drinks.

McCafe is "a very important piece," Cunningham said. "It gives us the chance to follow what the customer is really looking for."

Re-emphasizing coffee is critical at a time when food sales are under pressure. Supermarkets have lowered prices, making it more alluring to eat at home instead of at a restaurant. Gas stations and other channels also are increasingly selling prepared meals, adding to the competition.

McDonald's is looking to build on the success of its all-day breakfast, which rolled out last year across the U.S. It's also upgrading stores with table service and more touch-screen ordering kiosks. The all-day breakfast push helped fuel a return to growth, but the resurgence has been waning: Domestic comparable sales rose just 1.3 percent last quarter, and McDonald's is facing declining foot traffic.

McDonald's isn't alone in struggling to build a more sophisticated coffee menu. After Burger King introduced 10 new Seattle's Best drinks in 2013, including flavored lattes, the rollout fizzled. The company later merged with Tim Hortons, a Canadian coffee chain, though the two brands remain distinct.

McDonald's still plans to emphasize its price advantage over Starbucks as it retools the McCafe brand. The company is planning a $1 drip coffee and $2 small specialty-beverage deal for the first quarter of next year, Cunningham said.

The chain, with about 14,000 domestic restaurants, said in October that it would buy all of its coffee from sustainable sources by 2020. In another sign of Starbucks envy, McDonald's sold pumpkin-spice lattes across all of the U.S. this fall - the first time it's done so in three years.

The company opened its first stand-alone McCafe location in Toronto last year, a move that it said "showcases the company's passion for elevating the cafe experience." McDonald's now sells Americanos and shots of espresso across its Canadian restaurants. The McCafe locations even bake McCafe pastries in house.

In the U.S., McDonald's is upgrading its espresso machines with equipment that creates more consistent-tasting drinks, Cunningham said. The new gear, which has better milk-steaming technology and can make a wider variety of drinks, costs about $12,000 apiece.

But the typical McDonald's diner is a low- to middle-income consumer and not adventurous when it comes to coffee, said Will Slabaugh, an analyst at Stephens. Customers are looking for something that's affordable and familiar, he said.

"It's going to continue to be a slow build for them, especially in this type of environment where the customer expects a deal," Slabaugh said. "I don't expect that to be a huge needle mover for them."

# data[].attributes.attachment_link.title
McDonald's revamps $4 billion McCafe brand as it lags Starbucks

# data[].attributes.attachment_link.description
McDonald's Corp., losing ground in its battle for the nation's coffee drinkers, is planning to shake up its McCafe brand, part of a bid to challenge Starbucks.

# data[].attributes.headline
Reason #3: Starbucks' coffees are highly customizable -- so much so that they have driven sales through the roof -- as McDonald's' sales have dropped, in part, due to a small number of coffee options.

# data[].attributes.subject
Reason #3: Starbucks' coffees are highly customizable -- so much so that they have driven sales through the roof -- as McDonald's' sales have dropped, in part, due to a small number of coffee options.

# data[].attributes.attachment_link.readable_text
Although Starbucks and McDonald's menu offerings are far from identical, the two chains have a lot in common. Both are always seeking to win over busy, on-the-go consumers and gain dominance in the breakfast category. And while Starbucks is a distant second to McDonald's in terms of size and sales, there's one metric in which Starbucks has been declared the victor for the seventh year in a row: brand value.

This bit of Starbucks supremacy comes to us by way of the 2023 Restaurants 25 report, an annual release by the valuation consulting firm Brand Finance. According to the report, Starbucks has increased its brand value 17%, bringing the chain to $53.4 billion, whereas McDonald's lost brand value by 7% and sits in second place at $36.9 billion.

"Starbucks generated accelerating demand for its products throughout 2022 following a continued return to normality as pandemic-related restrictions reduced globally," the report reads in part. "Starbucks' brand value is now 30% higher than its pre-pandemic value. This success highlights the positive impact that the brand's US Reinvention Plan has had since its launch in 2022." (You can read the Starbucks press release about the reinvention plan .)

Although this particular study places Starbucks at the top, it might be confusing considering the massive success McDonald's has enjoyed over the past year. McDonald's beat out Starbucks in app downloads both domestically and globally in 2022, with 127 million new worldwide accounts and 40 million new downloads in the United States alone. Starbucks, on the other hand, had 13.6 million downloads in the U.S. and 34 million worldwide.

McDonald's also drew success from its consistently stellar meal promotions like the Cactus Plant Flea Market Boxe s, aka Adult Happy Meals. The adult-focused, nostalgia-packed offering increased foot traffic for McDonald's by more than 20% in the week it launched.

So if McDonald's is killing it on so many fronts, why in this wonderful world of business would it not be the top dog of restaurant brands? Brand Finance points to supply chain issues and the fact that McDonald's was forced to raise its prices as a result of inflation. While it's true that McDonald's did raise menu prices in Q3, it also seemed that the chain's most loyal of customers didn't care: McDonald's sales actually increased during that time, despite the higher cost.

Even if they didn't hurt sales, those price increases were enough to ding McDonald's valuation.

"Because of the macro-economic difficulties faced by the brand and market instability, McDonald's has raised prices on several popular menu items over the last 12 months," Brand Finance told Food Business News. "For a restaurant brand whose identity has relied upon low-priced products, this decision has not been taken lightly amongst consumers."

Starbucks, meanwhile, increased its value by focusing on customized beverage sales. Despite the backlash from Rewards members when Starbucks updated its loyalty program in February, the opportunity for endless customization continues to draw in crowds. This is where it has McDonald's beat, despite so many other factors leaning in the burger chain's favor. We can't help but wonder, however, whether an upcoming Senate hearing on Starbucks' alleged violation of labor laws might lead to any decrease in the brand's valuation in 2024.

# data[].attributes.attachment_link.description
Starbucks is second to McDonald's in size and sales-but there's one way it outperforms the Golden Arches.

# data[].attributes.headline
Reason #4: Starbucks has baristas dedicated to serving coffee; McDonald's' lacks the same dedication and its coffee is not handled by specialists.

# data[].attributes.subject
Reason #4: Starbucks has baristas dedicated to serving coffee; McDonald's' lacks the same dedication and its coffee is not handled by specialists.

# data[].attributes.attachment_link.title
Inflation Could Turn McDonald’s Into A Serious Competitor Of Starbucks

# data[].attributes.attachment_link.description
The two franchise giants have changed their value proposition in recent years.

# data[].attributes.headline
Reason #5: Starbucks is working to expand over the next ten-years due to high-demand of coffee. Mc'Donald's, not so much.

# data[].attributes.subject
Reason #5: Starbucks is working to expand over the next ten-years due to high-demand of coffee. Mc'Donald's, not so much.

# data[].attributes.attachment_link.readable_text
The Seattle-based coffee chain sets new targets across staffing, beverage innovation and community support at its 2022 Annual Meeting of Shareholders, including a goal to operate 55,000 stores in more than 100 markets worldwide by 2030
Wages for Starbucks staff at US stores will increase by an average of 17% over 18 months | Photo credit: Starbucks

Starbucks has unveiled a range of new targets and operational improvements at its 2022 Annual Meeting of Shareholders. By 2030, the Seattle-based coffee chain said it wanted to operate 55,000 stores in more than 100 markets around the world. Currently it operates more than 34,000 stores in 80 countries, indicating that new market entrances look likely in the near-term.

The company highlighted that it had returned $25bn to shareholders over the last four years and had recommitted to returning another $20bn by 2025.

Starbucks also said it would be increasing wages across its US business, where it is facing a growing union movement, by an average of 17% over 18 months, with starting ranges of $15-$23 per hour by summer 2022 and representing an investment of $1bn.

New equipment, including efficient handheld ordering devices, an app-based shift management system and a company programme to provide rides home for staff after dark, will also be introduced to improve staff experience, the chain added.

Other announcements include the introduction of Clover Vertica brewing machines at all company-owned stores in the US by 2025, committing $30m to support local communities by 2030 and an expanded goal to positively impact one million women and girls at origin by 2030.

Starbucks also highlighted that cold beverages accounted for nearly 70% of its total beverage sales in 2021, with its cold and plant-based categories the fastest growing in the business.

"Starbucks has always been a people-focused company guided by our belief that when we invest in our partners, they create the experience that uplifts our customers. That will not change. Today, demand for Starbucks is strong and growing. And I strongly believe the relationships built over our coffee make our world better," said Starbucks Board of Directors Chair, Mellody Hobson.

In mid-March Starbucks CEO Kevin Johnson announced he would be retiring after 13 years working at the company and being at the helm since 2017. The chain's former CEO Howard Schultz has stepped back into the business on temporary basis and will focus on setting an innovation framework while coaching and onboarding the next permanent CEO.

# data[].attributes.attachment_link.title
Starbucks targets 55,000 stores globally by 2030

# data[].attributes.attachment_link.description
The Seattle-based coffee chain sets new targets across staffing, beverage innovation and community support at its 2022 Annual Meeting of Shareholders, including a goal to operate 55,000 stores in more than 100 markets worldwide by 2030