McDonald's and the McCafe Coffee Initiative: A presentation

Abstract

McDonald Canada opened in 1976, after a decade of operating in Untied States. McDonald Canada was the first McDonald restaurant to be opened outside the United States. McDonald Canada has 1200 locations throughout the country and 70% of them are owned by franchisees. Company's success is based on three aspects: company, suppliers and the franchisees. Company's sales were increasing but its market share was declining. According to Ralph Sgro main barrier for sales growth was quality of coffee. So this time company needed something revolutionary and Ralph Sgro decided to introduce McCafe to Canadian customers. McCafé was a full-service coffee bar, located in a McDonald's restaurant as an extension to the front counter or located as a stand-alone restaurant.