Starbucks is Toast

  Buenos Aires, Argentina
Saturday, May 16, 2009

As you may know, McDonalds has decided to take on Starbucks in the quest for your four dollar coffee purchases.  On the surface, this seems like McDonalds is taking on Mission Impossible.  However, they may have a secret weapon.
 
In Argentina, and I'm told other countries in South America and Europe, McDonald's has a model that should make Starbucks shake in its boots - the McCafé. Today, Barbara and I visited a new McDonalds/McCafe in an up-scale area of Buenos Aires.  As you can see from the following photos, this is not your normal McDonalds. 

 

   
We had cappuchino and expresso in china and glass cups, sat in leather chairs, and left the dishes to be bussed.  The cost -- $4.50.  We could have also had some visually-appealing cheesecake or chocolate torte, but it was 10 a.m., and we resisted.  In addition to the excellent coffee/cappuchino, there were three computers available for customers' use, and the whole café had wi-fi.  



 
Oh, and way in the back, you could buy a Big Mac.
 
If McDonalds launches this model in the U.S., I think Starbucks will be in for some very tough times.