McDonald's vs. Starbucks

  Can McDonald's lure customers away from Starbucks coffeehouses with free Wi-Fi?

A brewing war between McDonald's and Starbucks just heated up. McDonald's—which is already competing with Starbucks by offering espresso and other premium coffee drinks—has announced that it will offer free Wi-Fi starting in mid-January. McDonald's currently charges $2.95 for two hours of Wi-Fi, and by dropping the fee the fast-food chain hopes to encourage customers to linger the way they might at a coffeehouse. Commentators say the move will put pressure on Starbucks, which offers free Wi-Fi to card-holding regulars and AT&T DSL users, but charges others $3.99 for two hours of access. Will free Wi-Fi help McDonald's knock Starbucks off its coffee throne? (Watch a report about McDonald's giving away free wireless Internet)

Sorry, McDonald's will never be a hip place to hang out: "The idea is to hook the nation's loitering youth," says Thomas Ricker in Engadget, and keep them busy posting Facebook updates long enough that they'll buy some more of McDonald's "manufactured food." But it's laughable to think that anywhere but in the remotest backwater will McDonald's ever be "the hippest hangout around."

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