Introduction
According to a study by Starbucks, as of 2022, Starbucks will have an edge over McDonald’s when it comes to iced coffee drinks and coffee products. Further, they will offer more add-on items to enhance coffee drinks, and they will have more caffeine than McDonald’s.
It Is still possible to get good coffee for the same price at McDonald’s when it is considerably less expensive than at Starbucks. As for the coffee, if you’re not a big coffee fan, you might enjoy the lighter roasts used by McDonald’s since they’ll taste sweeter and nuttier.
McDonald’s
Ronald and Maurice McDonald founded the fast-food chain McDonald’s in San Bernardino, California, in 1940. According to their 2018 revenue, McDonald’s served 69 million customers each day across over 100 countries through 37,855 restaurants, making it the world’s largest restaurant chain.
Burgers, cheeseburgers, and fries are among its most popular products, although the chain also serves chicken items, breakfast items, soft drinks, milkshakes, and wraps. McDonald’s is the world’s second-largest private employer and has the ninth highest global brand valuation of any company as of 2020, according to Brand Finance.
Starbucks
A coffee company called Starbucks Corporation operates a group of coffeehouses and roasteries that is headquartered in Seattle, Washington. It is the largest chain of coffeehouses in the world. As of November 2021, there were 15,444 of its 33,833 overseas stores in the United States. Among the company-owned and operated Starbucks outlets in the United States, over 8,900 belong to the company.
Starbucks offers a wide selection of drinks, including hot and cold beverages, whole bean coffee, instant coffee ground into a fine powder, espresso, caffe latte, juices, and Frappuccino drinks, among others. According to Forbes Global 2000, the firm ranks 288th on the Fortune 500 and 114th on the Fortune 500.
Comparison of McDonald’s and Starbucks
Quality
If you want coffee with a more intense flavor, Starbucks offers a better cup of coffee than McDonald’s because it often uses darker roasts. As for the coffee, if you’re not a big coffee fan, you might enjoy the lighter roasts used by McDonald’s since they’ll taste sweeter and nuttier. Furthermore, Starbucks’ lines can belong in the mornings, so if you’re in a hurry or on the run, McDonald’s is the better option.
Expansion
The number of McDonald’s locations worldwide exceeds that of Starbucks, and McDonald’s is available in almost twice the number of countries as Starbucks. Additionally, McDonald’s currently operates 39,500 stores worldwide, among them 14,000 in the US. There are 121 countries in which it is available. Alternatively, Starbucks has 79 countries worldwide with more than 15,000 stores, including more than 32,000 in the United States.
Inventory Turnover
McDonald’s has a good inventory management system, whereas Starbucks has a low inventory turnover ratio, which is unsatisfactory. On the other hand, Starbucks has a ratio of 12 times inventory turnover compared to 118 times at McDonald’s. Inventory turnover ratios that are higher are generally better than those that are lower.
Price
McDonald’s is a much cheaper alternative to Starbucks. If we compare the cost of a large hot or iced coffee at McDonald’s to that of a similar service at Starbucks, McDonald’s charges only $1. Secondly, McDonald’s has better service and is more convenient.
Starbucks offers a comfortable interior, an abundance of beverages, and an established brand image. McDonald’s offers lower prices, convenience, and a more extensive food menu.
Environment
Besides its variety of counters and tables, Starbucks offers free Wi-Fi access and comfortable chairs, making the place more pleasant than McDonald’s.
Wi-Fi is available at McDonald’s as well. However the interior of McDonald’s is designed more like a fast-food restaurant than a place to work, so it’s difficult to spend prolonged hours there.
Brand Image
Furthermore, Starbucks has a positive attribute: its reputation as a brand. The iconic Starbucks logo appears constantly on social media, as it has become an integral part of the trendy culture. Starbucks has a much stronger brand image than McDonald’s, which is popular but not as powerful.
Pick-up Services
Fast and convenient, McDonald’s allows customers to place orders and pick up food easily. In terms of ordering and picking up your food, McDonald’s has a very streamlined and simple process.
Starbucks has different pick-up slots depending on what you order, and it is very easy to make a mistake. Because of the complex pick-up process, Starbucks is significantly less convenient than most of its competitors.
Both Starbucks, for coffee, and McDonald’s, for food, are good in their main field. Both provide their customers with good quality food and drinks. However, there is a slight difference in the price, which could be the deciding feature for most of the customers whether to go to McDonald’s or Starbucks.
After analyzing the pros and cons of both options, it lies with the consumer to determine where they would prefer to drink their coffee.
