McDonald's Europe set to overtake Starbucks with McCafes

McDonald's Europe set to overtake Starbucks with McCafes
Tags: Burger/Steak/BBQ, Coffee / Specialty Beverages, Food & Beverage, Franchising & Growth, International, Operations Management
May 26, 2009

The Financial Times: McDonald's is aiming to overtake Starbucks as Europe's biggest coffee chain, with plans to open several hundred McCafÃ© stores selling pastries and cappuccinos this year. While Starbucks – which has 1,300 stores in Europe – has been scaling back on its European expansion, McDonald's plans to expand its chain of branded cafes to 1,200 in Europe by the end of the year.

The company said its strategy of opening McCafÃ©s, which operate within or next to regular McDonald's restaurants, in existing restaurants in Europe allowed it to recoup its investment more quickly than Starbucks, helping it break into difficult markets such as Italy.

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