The economic downturn is hurting everyone across the board. Sure, firms are getting boosts thanks to publicity stunts and noteworthy weird foods, but those things don’t last. They might bump in the short term, but long term? Everyone’s struggling, except for McDonald’s. As the summer heats up, so does McDonald’s business, with sales up 5.7% in July thanks to the newly-launched McCafe line of fruit smoothies and frappes.
As it turns out, the cold drinks and the upper-market coffee beverage market has been a huge business for McDonald’s, allowing the fast food chain to successfully reinvent themselves as more than just a cheap McDinner, but as a place that is both affordable and good-tasting, even if it’s not exactly good for you. It’s amazing what a marketing blitz and a little store improvement can do, isn’t it?
“Over the last several years, they’ve been very successful at improving the quality of their food,” said Stifel Nicolaus & Co analyst Steve West. “They’ve really invested in their brand. McDonald’s has more broad-based appeal. They’re not as exposed to single white males. McDonald’s is appealing to soccer moms. They’re appealing to high-end consumers.”
Tags: McDonald’s, McDonald’s McCafe, McCafe, food trends, fancy coffee drinks, business strategies, unusual business plans, franchise reinvention, McDonalds reaches sales milestone thanks to McCafe, smoothies