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McDonald's Iced Coffee Bandwagon Shouldn't Scare Independents

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bandwagonCircus workers were skilled at attracting the public with the razzmatazz of a parade through town, complete with highly decorated bandwagons. In the late 19th century, politicians picked up on this form of attracting a crowd and began using bandwagons when campaigning for office.

Now it means a way of joining something, often in an opportunist way, when that movement is seen to have become successful.

McDonald’s has launched a massive ad campaign as their McCafe that is very broad with a deep reach. At only $1.79, I know they are selling a lot of iced coffee.

What’s interesting has been a lot in the specialty coffee community taking the cynical side and mocking the newcomer McDonald’s as well as the industry leader Starbucks. Like this from comments appearing after a related story in the Los Angeles Times, “Starbucks stumbled in part when they drifted far enough away from serving only excellent coffee that they alienated (with seemingly interminable waits whilst the 12 year old in front of you gets her decaf lo-fat frappe chai chino vente) the educated.”

For independent coffeehouses, they need to fish while the fish are biting.  They need to get banners, window clings and POP showing their iced coffee drinks, not spend time harping on the big boys.mccafe-400x300

Retailers over the past several years have been on only one bandwagon – discount. At some point you have to look at whether there is any differentiating factor or opportunity left in that.

Case in point, some coffeehouses just pour drip coffee over ice – yuck. Some use a cold-brew toddy which is nice and some brew espresso shots over ice.

Those differentiating factors of how it is made will make it important to train the crew how to explain what you offer.  They’ll also need to taste test next to Starbucks and McCafe so their crew can speak about it intelligently. Again, someone who likes McCafe’s coffee should not be seen as a threat – they came to YOUR shop to try yours – the independent should win them over – not piss them off.

Starbucks was a godsend to independent coffeehouses as they steamrolled across the country – they are the reason specialty coffee has the enormous market it does today. With specialty coffee at McDonald’s – it doesn’t have to be an “either” it can be an “and”. People can go to McDonald’s and the independent coffee house.

The smart coffeehouses like the ones I mention in my book, You Can Compete will capitalize on this phenomenon to segment their offerings as an upgrade.

What opportunities can you can get on the bandwagon for in your market?

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