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bennyfunshoes | Will McDonalads be next to cut stores like StarBucks??? |
Does anyone thing Macdonalds will be next to downsize like Starbucks? Or maybe Subway? Do we need one of each of these on every st in every town or is the expansion of these MN's over? |
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jellybeanchick
 |
I don't think so. One of the reasons that Starbucks has to close stores is that people have less money to spend, and $4 coffee drinks is one thing people can cut out to save money. If they need the caffeine, they will get free coffee at work, or replace their Frappuccino with an inexpensive brewed coffee. I think every single article I have read about saving money mentions quitting the gourmet coffee habit.
McDonalds is a completely different beast. McDonalds is among the cheapest food you can possibly get. This is because it is not gourmet. It is the lowest quality that is still passable as food, and it is mass produced and frozen. This makes it so that it is cheaper to buy a quarter pounder there than to make a hamburger at home. So when the economy is suffering, McDonalds should not be suffering as well.
Another difference is in the expansion plans. Starbucks announced not so long ago that they wanted to increase the amount of stores in America, so that customers wouldn't have to wait in long lines. It's pretty obvious to me that this won't result in increased business. McDonalds, on the other hand, has pretty much saturated America for decades, and its expansion has been in overseas markets where they are still spreading the joy of American fast food. |
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ALAN T
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If McDonald's closed half of Americans would have no idea how to feed themselves |
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blcohen529
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Do not bet that they will have the massive closings facing Starbucks. According to same store sales figures released to the public for Securities complaince,comparing current sales with past year sales show relatively equivalent sales numbers. This is not as desireable as seeing sales increase but indicates a marketing steadiness and resilience under trying times.
In southern California, I see an unexpectedly large turnout for the $2 coffee drink which likely comes at the partial expense of Starbucks. This is a hugely profitable item. Watch the large numbers of McD's employees going to the coffee machines to fill orders. It is telling....
McDonalds will continue to spread but will not likely greatly expand until the economy improves. Historically, the company expands SLOWLY not wanting to
have stores close and poorly represent the brand. |
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Werner
 |
The problem is that McDonalds tends to draw customers for what I suppose could be called "food". Kids are drawn in by the advertising and that keeps people returning. Starbucks tends to be more of a snob thing despite the fact that their coffee tastes horrible. I hope that you are right though. |
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Thumbs ^ Up
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I really do hope so. |
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Tom Cat
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If people have less to spend, they eat out less. Stores will close especially the marginal ones i.e small population, health concious citizens etc, etc. Generally they will continue to grow and expand if populations continue to grow especially in countries with new spending money e.g. growing economies like China. Large firms have the ability to attract creative talents to market and innovate. McDonalds is one such example. Companies however go through economic cycles. What goes up must come down and the cycle repeats itself. The US itself is undergoing just such a cycle. It will not be the superpower in the coming years very much like the rise and fall of the Roman empire and others before it! |
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