The Coffee Wars continue between Starbucks, McDonalds and Dunkin’ Donuts. Starbucks, once the goliath of specialty coffee, has seen sagging sales over the past year with no relief in sight. Over the holiday season the company ran its first ever TV commercial campaign and is now testing out $1 cups of coffee and free refills in its Seattle stores. Starbucks CEO and founder, Howard Shultz continues to site loss of customer appreciation and increased focus on expansion as the reason for Starbucks decline.
Meanwhile, McDonalds continues with plans for installing gourmet coffee lines into most of its franchises throughout the United States. Both McDonalds and Dunkin’ Donuts have seen tremendous growth in their coffee lines, which are less expensive than Starbucks.
No doubt the poor economic climate will play an important factor in the Coffee Wars in the coming months.
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