Following McDonald's test with stand-alone McCafes in the U.S. in 2001, the company has decided to expand the branch into new markets. McDonald's announced that McCafe will now open fifteen new stores in Tokyo and other cities throughout Japan. The company plands to expand it's McCafe operations to other venues. McCafes can be found in other countries including Australia, UK, Canada and abroad. The stores serve an up-scale lineup of cappuccino, espresso, and Latte alongside baked goods and light meal items (which, according to McDonald's, are priced below its competitors). There are currently nineteen test McCafes that are all umbrella areas within McDonald's restaurants. I think this is definately a threat to Starbucks! If McDonald's is expanding McCafe then apparently its a growing success and Starbucks has a new competitor. Starbucks should now focus on how they would handle this threat if it reaches the U.S. (it's biggest market) instead of trying to tackle the fast-food McDonald's.
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