McDonald’s “small yellow cup”, to high-profile grab coffee market!
This morning, McDonald’s professional coffee brand McCaf é announced at the press conference that it will invest 2.5 billion yuan in the next three years to speed up the layout of the coffee market in mainland China. It is estimated that there will be more than 4000 coffee brands in China by 2023. Meanwhile, since November 18, the coffee maker will be upgraded to 10 million free lattes in 17 cities across the country.
To this end, McDonald’s prepared enough “ammunition.”. “In the future, we will increase investment in the development of new stores, equipment upgrading, personnel training and other aspects. It is estimated that the investment amount will be about 2.5 billion yuan in three years.” Zhangjiayin, chief executive of McDonald’s China, said today, “our goal is to make coffee there where there is McDonald’s.”
McDonald’s coffee brand maccoffee accelerates its layout in China’s mainland market
Next, please see the latest news sent back by the snack generation at the scene.
Since 1990, the first restaurant began to provide fresh coffee. In 2009, it began to grind coffee by hand. Coffee has always been an important part of McDonald’s business. “At present, McDonald’s sells about 90 million cups of coffee a year. In other words, one out of every 10 McDonald’s customers will buy coffee. ” Pangqi, President of McDonald’s Chinese brand development business, said at the meeting today.
Now, McDonald’s has decided to increase its stake in coffee.
“Relying on the rapid development of McDonald’s in China, it is estimated that there will be more than 4000 Macs in 2023. This year, maccoffee will take the lead in covering McDonald’s restaurants in Beijing, Shanghai, Guangzhou and Shenzhen, and will be stationed in seven major cities, namely Nanjing, Hangzhou, Fuzhou, Xiamen, Tianjin, Chengdu and Suzhou, in 2021 McDonald’s said today.
Snack agents learned today that by the end of this year, China’s mainland market is expected to have a total of nearly 1500 coffees. This means that the fast food chain has become one of the most important brands in China’s coffee market, and it will add more than two coffees a day on average.
Although it’s a much faster expansion plan, it’s actually not that difficult for McAfee.
Obviously, unlike many chain coffee brands that need to “start from 0” to open new stores, maccoffee can rely on the huge offline restaurant network of McDonald’s to expand rapidly. As of October 2020, there are more than 3600 McDonald’s restaurants in China’s mainland market, and the fast-food chain is expanding at the rate of net increase of more than 400 new restaurants each year.
“Maccoffee will rely on McDonald’s opening resources to expand.” Zhang Jiayin told the snack agent that at present, the opening mode of maccoffee is called the “handmade coffee bar” mode, that is, using the existing restaurant resources of McDonald’s, providing relatively independent coffee counter and introducing professional coffee making equipment.
“If we reach a large scale, we will consider testing different models, and the possibility of the future is full of imagination.” She said.
She said that on the one hand, the opening and operation of maccoffee will not be separated from McDonald’s; on the other hand, maccoffee is positioned as a sub brand of McDonald’s, which will have relatively independent brand positioning, visual image, product mix and promotion activities.
What has been upgraded?
While stepping up its expansion, maccoffee is also upgrading its existing business, including coffee beans, food matching and packaging.
First of all, a new blend of coffee beans has been launched. McDonald’s said today that from November 18, the whole country will start to use the brand-new M10 blended coffee beans. In addition to the original Arabica coffee beans produced in Brazil, Colombia and Ethiopia, Rwanda volcano beans are newly introduced. It is reported that the flavor is characterized by “strong floral and fruity aroma”. The snack agent learned that the matching was specially tailored for Chinese consumers.
Macafee introduced into Rwanda volcano beans, launched a new mix of M10
Secondly, it has introduced more food choices with coffee. The company said that in order to better meet customers’ diverse dining scenes, especially the demand for hot food, maccoffee has launched four series of new meals: Kesong series, Danish roll series, Basque cheese cake and tiramisu. After purchasing coffee, they only need to add 3 yuan, 5 yuan and 9 yuan to enjoy.
More choices of coffee with coffee
Third, brand upgrading. The snack generation learned that since November 18, the new brand logo of “more modern” will be used for maccoffee, as well as the latest packaging in the world, including the iconic “small yellow cup” – the base paper color cup body and the yellow cup cover. In addition, the baristas will also wear new aprons.
Finally, it is “value upgrade”. McDonald’s said the espresso is handmade by professional baristas, and the price of each drink is less than 20 yuan. “Customers can enjoy high-quality lattes or American style at a lower price.”
China uses the latest global packaging, including the iconic “little yellow cup”
The snack agent learned that the price of latte and American coffee, the main products of coffee, will “not increase” in this upgrade, or maintain the price range below 20 yuan. At the same time, McDonald’s said it will continue to provide customers with “coffee monthly card” and other options through the digital platform, that is, the price of each cup of coffee is about 10 yuan.
Focus on “high cost performance”
In order to “break through the encirclement” in China’s fast-growing coffee market, the positioning strategy of Macca is very clear, and the key words are: high cost performance.
“There are many market segments in the coffee market, and we hope to capture a market with both high quality and high cost performance.” Pangqi told the snack food agency that at present, China’s coffee market is becoming more and more mature. “Coffee consumption is not only party oriented, but also habitual and daily. We can see that consumers’ demand for coffee quality and cost performance is growing rapidly.”
She said that unlike convenience stores, which have the same price advantage, the beverage of Macca is “freshly ground hand-made coffee”, which is made by baristas, and each barista needs to receive more than 100 hours of training. “For lattes, every cup of latte is carefully drawn by the Barista. In 2009, we launched hand-made instant coffee, and now there are more than 6000 coffee makers. ” She said.
Macafee provides handmade coffee
In order to meet the convenience needs of consumers, maccoffee will also add online channels.
“We can see that 70% of people use coffee in the scene outside the restaurant, so it is very important for consumers to provide convenient choices. At present, more than 80% of our sales come from online orders. ” Zhang Jiayin told the snack agent that maccoffee would enter McDonald’s own and third-party delivery platforms. At present, the business platforms of McDonald’s in China include restaurants, delivery, coffee, dessert stations, and so on.
When talking about the overall competitive advantage of maccoffee, Zhang Jiayin said that the success of maccoffee will be fully dependent on McDonald’s high-speed shop opening, supply chain, training system and kitchen equipment.
“We are not new to the road, we have a mature supply chain with procurement cost advantages, so we can provide competitive prices. We also don’t need to rebuild digital channels. After upgrading, customers feel that maccoffee also has an independent consumption port, but for us, it is not a concept from 0 to 1. ” She said.
She said that at present, maccoffee is a “light investment” mode, which is “less investment” than professional coffee brands, and can make full use of McDonald’s existing delivery network.
In addition, zhangjiayin said that McDonald’s has found that more than 50% of customers need to eat coffee with food. “McDonald’s itself can give coffee a kitchen equipment for solar eclipse. We also believe that I will open a distance between us and our competitors.”
Talking about the future overall layout of maccoffee, she said that the first thing is to create more Macintosh, and let McDonald’s be the place where McDonald’s exists. Secondly, on the one hand, it is necessary to improve the brand and products and innovate products with the core of coffee; on the other hand, maintain the positioning of “high cost performance” to meet the demand of coffee market.
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