Friday, May 30, 2008

20700457_DongSoo Joseph Rhee_Entry 12

Coffee ? Burger ? McDonald !

What comes into your mind, when you think about coffee? Probably answers would be latte, cappuccino, frappuccino and so on. Then what about the shops that serves coffee? What comes into your mind ? I have no doubt that franchises like Starbucks, CoffeeBean or some other coffee shops. However now McDonald serves their own coffee, and they have no doubt that they are ready.


Summary
Thirty years ago Janice L. Fields who was a brand new crew member of McDonald in Dayton, Ohio. Now she is a cheif operating officer of McDonal USA. She is responsible for for 13,800 restaurants, 700,000 employees, and $7.9 billion in annual revenue. After she was promoted to COO in 2006, selling of Bigmac raised rapidly, and still rising ever since.

Objectives
As an Chief officer who has done incredible job, she is now confronting huge challange, breakfast market. In order to do so, McDonald is now adding specialty McCafe coffees, such as cappuccinos and lattes. They see this will bring the breakfast market back to them.

Risks
However they have some risks too. In order to server these coffee, they have to install a brand new coffee machine to all the franchises. On top of that, serving various kinds of coffee, it might slow down the serving rotation and the waiting time for the customer. When think about the most advantage they have, which is hot food in short period of time, this could risk their business.

Opportunity
After years of test period, Fields say they are ready. To reduce the delay time, most of the processes has been automated. Crewmembers ? all they have to do is push a button and serve them to the right person at a right time. Also detailed instructions are written on the paper, such as how many times they have to stir for the specific coffee, and so on. They think it will be successful.

Opinion
I personally think this is a wonderful idea. I like McMorning meal very much, but I and my friends always complained about Mcdonald having only one kind of coffee. Therefore I foresee this event as a huge opportunity for McDonald.

However as it was mentioned above, I see some problems too. A lot of people comes to McDonald at morning. And huge percentage of them are customers for drive-thru, which means they are fairly busy customers. If the process gets slowed down even few minutes, it will be tremendous of damage to them. Also the quality of the coffee would be the problem too. When people start to look for a specific coffee, that means they are looking forward for the quality too. However I doubt that McDonald's Coffee is more delicious than the one in the proffessional coffee shops.

I suggest some solutions. Just like on the article, the serving process cannot be slowed down, never ever. This will require more seviere training for the crew members. On top of that they would have to improve their quality of coffee, or develop a special coffee that goes well with their food. Afterall, people are comming to get food, not only for the coffee.

I think through this project, McDonald will have incredible change and take the breakfast market fast.



Annotation : Written by Michael Arndt on Businessweek journal "McDonald's Specialty Coffee Kick". URL: http://www.businessweek.com/print/bwdaily/dnflash/content/may2008/db20080514_138620.htm

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