Okay, there are no neighbors' spouses involved here but Starbucks and McDonald's are committing a business sin of the highest degree by coveting something that each has little to no chance of making their own.
The reference here is for Starbucks' desire to grab some of McDonald's impressive market share in the out-of-home breakfast category and McD's belief that it can be a meaningful alternative to the coffee experience of Starbucks.
Up first is Starbucks. The chain, which had previously decided it was getting out of the breakfast business because the smell of eggs interfered with the aroma of coffee in the morning, has decided it's going to offer breakfast after all. It's hoping that a menu made up of healthier items, the only egg on the menu would be of the hardboiled and apparently less fragrant variety, will get more people stopping by its shops on weekends and on the way to work during the week.
McDonald's is intent on perking up its bottom line by selling specialty coffees at the chain's 14,000 restaurants in the U.S. Recently, McD's franchisees have questioned this strategy and the expense associated with it. Initial results in some test markets such as Kansas City showed sales fell off within six months of the new coffee drinks being introduced.
Discussion Questions: Are Starbucks and McDonald's on the right track with their breakfast and coffee strategies? Is the problem, if you agree there is one for either chain, in the premise or the execution?