McDonald's goes after Starbucks with new CosMc's coffeeshop

[Immutable_Mike]

@anon65652885

Here in Australia, McDonald’s launched McCafe in 1993, and Starbucks was late to the party. Starbucks hasn’t broken out of Sydney / Melbourne / Brisbane major shopping malls and downtown office centres. Perth, a city of around 2M people, has zero Starbucks presence. McCafes are everywhere, and they’re not bad.

The rumour is that McCafe simply beat Starbucks to the market, and Starbucks a) isn’t different enough to distinguish itself, and b) is realistic enough to avoid going to go toe-to-toe with McDonald’s in a retail fight.

In essence, they misread the Australian market badly, not accounting for the influence of 50-odd years of Italian and Greek migration, and that we’d grown up with local cafes.

Why Starbucks FAILED in Australia: The $105 Million Loss Bet

According to the 2016 IBIS World Report, large coffee chains like Starbucks, The Coffee Club, and Gloria Jeans only make up 5% of the total market in Australia.