So the marketing blog-o-sphere is twittering away today about McDonalds move on Starbucks. I think this is a great move on behalf of McDonalds and I do think it will do significant short term damage to Starbucks. Three key things McDonalds needs to get right - price point, taste and ambiance. The price needs to be less than Starbucks, the taste needs to be good - not great, not Peets, just good - and the ambiance needs to be comfortable and functional. I think they're executing a winning plan. Also, I don't think the cafe prima donnas who order half skim, half soy, raw sugar, extra wet, decaf vente lattes will be flocking to McDonalds, which means McDonalds efficiency relative to Starbucks will be off the charts, and the customer experience for us regular folks greatly improved.
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