McDonald’s Reinvigorates McCafe as Part of its New Growth Strategy

McCafe

Understanding just how important the coffee culture is for consumers, McDonald’s (NYSE:$MCD) is relaunching McCafe with a new look, cafe-quality products, and a push into the refrigerated section at retail stores.

Intrigued by McDonald’s strategic move? Here is everything you need to know before investing.

Coffee

McDonald’s McCafe relaunch features an expanded product line in hopes of driving revenue growth. Specifically, the new products include caramel macchiato, cappuccino options, and an Americano. Its existing lattes and mochas are also being “recrafted”.

The company will sell its coffee at a lower price than its competitors; its new specialty offered will be priced at just $2 for a small.

Branding

McCafe management expressed the following regarding the company’s priority on creating the ideal McCafe experience: “The refreshed look and feel will include a new brand logo and packaging that will evolve with the seasons. McDonald’s will also begin transitioning to an updated and expanded McCafe presence in-restaurant with a sleek, modern look in 2018 as part of its evolving Experience of the Future.”

Growth

Indeed, the rebranding of McCafe represents a pivotal role in the company’s overall growth strategy. In March, the company launched its new global growth plan that included digital capabilities, improved drive-through delivery experience, and more. 

As of now, the growth plan has increased McDonald’s sales growth by 6.6% in the most recent quarter.

While there’s no guarantee that McDonald’s renewed coffee efforts will reflect in optimized sales, the fast-food company has done everything it can to mitigate the risk by entering a proven, high-demand market.

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