Mickey D's Risks Big in Java War

Unlimited Internet access comes with new content system

(NEWSER) - Starbucks will offer free unlimited Wi-Fi at its company-owned stores starting July 1. Battered by the recession and the successful challenge mounted by McDonald's, the coffee giant will also plug its customers into customized content—including free access to pay sites like the Wall Street Journal's, Frank James blogs for NPR . The goal is to draw users in and keep them around, notes the LA Times . More»

Iced drinks available only in Phoenix and Tampa for now

(NEWSER) - Starbucks is offering a 31-ounce cup of iced coffee or tea in Phoenix and Tampa. The move is likely another step in the competition between McDonald's and Starbucks—McDonald's sells 32-ounce sweet teas in Southern markets, and recently started offering espresso. The new Starbucks size is called "Trenta." An iced coffee in that size costs $3.30 and an iced tea $2.60, Reuters reports. More»

Famous chain loses in Slate taste test

(NEWSER) - Coffee snobs may “talk about the subtleties of macchiato” and scorn the chain stores, but “even sanctimonious coffee bores must lapse: The flesh is weak, the day is full, and Starbucks is just half a block away,” writes Nathan Heller for Slate. Dunkin’ Donuts and McDonald’s also offer a quick fix, so six “notorious coffee addicts” set out to compare, judging taste, consistency, presentation, and process: More»

(NEWSER) - Just as Starbucks is scaling back its European expansion, McDonald's plans to open hundreds of new outlets offering high-end coffees and pastries on the continent, reports the Financial Times. “We can become the biggest seller of coffee in Europe,” boasted McDonald's chief financial officer. The company plans to launch 1200 new McCafés by the end of the year. The coffee shops operate inside or next to conventional McDonald's restaurants. More»

Marketing campaigns launch this week

(NEWSER) - A classy coffee war begins this week, with troubled giant Starbucks facing up-and-comer McDonald’s, the Wall Street Journal reports. Both firms are starting national marketing campaigns, with Starbucks insisting that its coffee is the best while McDonald’s tells consumers that its new lattes, cappuccinos, mochas, and hot chocolates can lift their spirits daily at an affordable price. More»