Now we know why Starbucks is seeing sales fall off.
“Starbucks raised prices by an average of 9 cents a cup in July, causing U.S. customers who face higher food, fuel and housing expenses to go to McDonald’s Corp. and Dunkin’ Donuts LLC for cheaper coffee.” (Bloomberg Nov. 16)

I’ve been working with a coffee venture/startup since the Spring and they’ve considered using the same supplier as MickeyD’s based on a number of organized blind taste test contests that Ronald and the gang have won. I’m not sure that Starbucks’ Third Place philosophy is going to carry over to any McDonalds sites, save maybe the one off of Jamboree in Tustin, CA that looks lke the interior was designed for a Justin Timberlake video shoot. I’m not sure if Starbucks actually tastes the best, but part of the draw for me is feeling like a cool young hipster ordering a cup of coffee that would feed a family for a day or three in a third world country.

Yes, but if I go to McDonald’s for a latte, I will most likely consume a 20 piece chicken mcnugget and large fires JUST because I’m there. If I stick to coffee houses I at least only have to contend with a pastry or lovely fruit cup.

Did I say large fires? Well, that too.

That argument went right out the window as soon as Starbucks started carrying those breakfast sandwiches. I could eat 5 of those before I even finish ordering.

In the Northwest, McDonalds buys their coffee from Starbuck’s Seatles Best Coffee division. So…Starbucks makes money either way.