McDonald's Bagged Coffee Could Be a Great Idea

I know what you’re thinking:  I wish I could buy some McDonald’s products in the grocery store.  Well, it appears that wish is about to be granted.  According to the Associated Press, McDonalds bagged coffee, both ground and whole bean, will soon be available in test markets around the country.

While the report is mum on where and exactly who will be selling McDonald’s bagged coffee next to Starbucks, Folgers, Dunkin Donuts, and whatever else is on shelves these days, consumers can hardly blame the hamburger and chicken nugget retailer for trying to grab a slice of the $20 billion a year coffee industry in the United States.

The McCafe idea has caught on adding significantly more than the originally expected $125,000 per year to restaurant sales.  Every time I am at the drive through I always see the specialty coffee drinks be handed out the window, and a lot of regular coffee cups as well. 

It makes sense for the restaurant chain to add McDonald’s bagged coffee to a nontraditional retail setting for the chain, and I would not be surprised in the least to see K-Cups with the Golden Arches logo being tossed into Keurigs later in the year.  You can call Ronald a lot of things, but slow to adapt to change is apparently not one of them.

Even if the company can capture a tiny amount of market share from customers looking to duplicate their coffee experience at home, it will present a major win for the company.  The question of whether or not the process is financially viable remains to be seen, but any portion of $20 billion is pretty significant to me.

McDonald’s bagged coffee presents an intriguing idea, but the cost to value relationship is important, and you have to wonder if store sales will sag because customers can brew the coffee at home before heading out the door instead of picking up a cup at the five locations they pass on their way to work (and perhaps add on a sausage biscuit or two). 

As the year unfolds it will be interesting to watch, as with anything the fast food giant does, I have to wonder how many other companies will jump on board.  Does the coffee at a fast food company merit bagged sales?  Lucky for everyone, time will have the answer to this question, but it does seem like a logical play for what could be a significant cash grab. 

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Posted by: Tukiyooo McDonald's Bagged Coffee Could Be a Great Idea Updated at : 5:41 AM

Thursday, October 31, 2013