McDonald's is going after one of Starbucks' crown jewels and testing cold brew
Matthias Balk/Getty Images
- McDonald's is testing new cold brew options in select Southern California restaurants.
- The move ups the ante on its competition with Starbucks for coffee lovers everywhere.
- CEO Chris Kempczinski has told analysts that coffee and chicken represent big growth opportunities.
McDonald's has upped the ante on its competition with Starbucks for coffee lovers everywhere.
The fast-food chain is testing two cold brew options at some Southern California locations, Restaurant Business reported.
McDonald's is piloting traditional cold brew, served black over ice, as well as a marble cold brew, which contains syrup and cream. The McCafé additions can be made using equipment currently available in restaurants, according to the publication. The drinks are available for a limited time only.
CEO Chris Kempczinski told analysts on McDonald's most recent earnings call that both coffee and chicken represent major sales growth opportunities for its restaurants.
"On core menu, chicken for us is a big opportunity, as is coffee," Kempczinski said. "I think on burgers, we're very well developed. But chicken and coffee, in particular, offer us, I think, a good growth opportunity. And we're going to be focused on that with some very specific product."
McDonald's rebranded its crispy chicken sandwich to the "McCrispy" last month, while introducing two limited-time offers to its chicken sandwich lineup, the Bacon Ranch McCrispy and Bacon Ranch deluxe McCrispy.
McDonald's McCafé coffee and bakery menu has itself seen a plethora of additions — both permanent and temporary — ever since the company brought it back in 2017 with new espresso offerings. In 2020, McDonald's added apple fritters, blueberry muffins and cinnamon rolls to its McCafé menu. Last September, it brought back cheese danishes in the US for a limited time.
More recently, the chain has added four new McCafé menu options in Australia, including a banana and blueberry loaf, according to the Daily Mail. McDonald's also entered a partnership with Oatly in Austria in March to bring oat milk to its McCafé menu in the country for the first time.
McDonald's reported 12% global comparable-store sales growth in the fourth quarter, compared with 5% growth for Starbucks. McDonald's also reported a 5% increase in traffic for 2022, while Starbucks' foot traffic dropped 2% for the quarter ending January 1.
Starbucks is arguably McDonald's biggest competitor on breakfast, snacks, and coffee.