IS MCDONALDS GEARING UP FOR A SPIN-OFF?
Something interesting is happening at McDonalds. Over the years, they've been slowly solidifying a brand that I believe they're about to spin off into a sub-brand in it's own right. I'm talking about "McCafe".
Since time immemorial, McDonalds has been serving hot drinks of different types; coffee with or without milk, tea, also with or without milk, and so on. They've also been offering desserts of the hot and cold varieties. At this point they actually have enough products outside their usual burger based meals to form a different department of its own.
I started noticing the "McCafe" brand a few years ago, and since then, it's grown in people's awareness. They've also removed the "McDonalds" logo from the cups, no golden m, so I believe they're gearing up for a spin off.
I actually think this would be a great idea. Their actual coffee is the same that you get in Starbucks and some other chains. They're supplied by the same folks. The price, however, is much less than in those chains. If they can retain the price after the potential spin-off, it would be devastating to the likes of Starbucks, especially if they open cafes that don't serve burgers and have laptop friendly sitting with electrical outlets.
I'm a big fan of the small non-chain based coffee shops, but for the general masses that go to chains, I think McCafe will be a big hit. They already have the name recognition, the real estate (McDonald's main business), and the economical pricing.
Peace & Love,
Adé
