McStarbucks
I’ve now heard several people say how McDonalds is “eating into” (hey, it’s not my pun!) the Starbucks brand with its specialty coffee drinks. Actually, I think the opposite happened. Starbucks tried to become more like McDonalds by being on every corner (some even with drive-thrus) and by offering everything short of burgers, but including Egg McMuffin-like sandwiches for breakfast, salads for lunch or dinner and knick-knacks for who knows what, to mention a few. Along the way, Starbucks lost what made it a great brand in the first place: A special place to go to rejuvenate and indulge for a while during an otherwise frantic day. That’s what people paid $4/cup for. It never was about the coffee! Let’s be honest, there’s better coffee than Starbucks for less money. Wall Street take note: Brands have natural growth limits. Howard Schultz has realized this and slowing the expansion.
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