Corporate Strategy Case Study

McDonald’s McCafe: The Re-imaging Efforts

OR

Abstract:
McDonald's, the largest fast food restaurant chain in the world, started witnessing a decline in its sales during the 1980s. To turn its fortunes around and also to project an upscale image, McDonald's decided in 1993 to introduce the concept of McCafé. McCafé was a full service premium coffee bar, located within the premises of a McDonald's restaurant as an extension or as a stand-alone restaurant. Although McCafé had proved to be a success for McDonald's, critics were sceptical about its continued success

Pedagogical Objectives:

• To discuss whether McCafé would be able to sustain its success in the future in the face of increasing competition

Keywords : McDonald’s Corporation, McCafe, Premium coffee shop, Upscale image, Image makeover, Marketing Strategies Case Study, Down-market image, High-end customer group, Customer preferences, Retail market for speciality coffees, Starbucks