Starbucks, Dunkin' Donuts, and McDonald's have been waging a public battle over the hearts — and wallets — of coffee drinkers. But all the while, says Jason Notte at Newsweek, lower-profile coffee concerns have been making a killing by selling to home brewers and businesses, appealing to the ubiquitous "one cup commuter" and office workers looking for higher quality from the Keurig K-Cup single-serving machines in their communal kitchens. But as the price of coffee creeps up and the Big Three rethink their strategies, can single-cup purveyors afford to stay relevant? Here, an excerpt:
By the end of Starbucks' fiscal year last September, revenues were down nearly 6% and same-store sales had dropped 9%. McDonald's, however, didn't fare much better — revenues were down 7% in the U.S. and globally. Even while crediting its frappes for a 12% jump in second-quarter profits and 4% increase in same-store sales, McDonald's has somewhat softened its focus on in-store coffee — briefly annoying Jamba Juice (JMBA) with a foray into smoothies earlier this summer.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
July 6 editorial cartoonsCartoons Sunday’s political cartoons include paying for school lunch by enlisting, and the banality of evil
-
5 biting editorial cartoons about 'Alligator Alcatraz'Cartoons Artists take on dangerous green things, historical precedent, and more
-
A journey into the deep past on beautiful ArranThe Week Recommends New Unesco Global Geopark played a 'key role' in the birth of modern geological science
