New McD's Menu Muscles In on Starbucks

Fast-food giant adds baristas, fancy coffee, $1B in sales
By Kevin Spak,  Newser Staff
Posted Jan 7, 2008 11:15 AM CST
New McD's Menu Muscles In on Starbucks
Long gone are the days when Starbucks dismissed McDonald's brew as "hot, brown liquid masquerading as coffee," as one Starbucks exec described it.   (Getty Images)

You’ll be able to get cappuccinos, lattes, and frappes from a certified barista beneath the Golden Arches this fall, reports the Wall Street Journal, as McDonald's takes on Starbucks. It’s the fast-food behemoth's biggest menu addition in 30 years, and the company expects it to bring in $1 billion annually. It’s also a huge risk, because McDonald's traditionally appeals to customers who want simple, cheap food.

In Kansas City, where the menu’s being tested, ads jab at Starbucks by boasting that you won’t get a “condescending look” if you mispronounce the drink name. Competition between such unlikely rivals shows just how convergent the market has become: Convenience is such a dominant factor that Starbucks has also adopted McDonald’s-esque quick food and drive-thrus. (More McDonald's stories.)

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