According to the Financial Times of London, the sales for McDonald’s are up for the seventh straight month globally. The paper attributes McDonald’s record string of profits to one thing-the company’s agressive move into coffees, mochas and iced lattes. McDonald’s is DESTROYING Starbucks.
The entire coffee wars between the two companies has been based around McDonald’s new McCafe’ brand. Their whole advertising campaign has been built around ONE message and one consistent theme: If you spend $4 for a cup of coffee, in this economy, YOU’RE STUPID. McDonald’s has even set up a website to hammer the point home: www.unsnobbycoffee.com . McDonald’s even bought a billboard across the street from Starbucks corporate headquarters in Seattle which said simply, “Four bucks is dumb.”
Starbucks has countered with a “It’s not just coffee. It’s Starbucks” ad campaign. Nobody is buying it. Starbucks sales have plummeted. The company has been forced to close almost 1,000 stores nationwide, laying off tens of thousands of employees.