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i have a new understanding of the mcdonalds coffee case now

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saint:

--- Quote from: ChadTower on August 24, 2007, 03:51:40 pm ---
I still say it won't happen.  They can make it perfect.  People won't trust it.  I wouldn't.

--- End quote ---

The next generation will. They'll wonder what the big fuss was about it.

shmokes:
Hell, I'd do it.  ---goshdarn---, I just drove from Salt Lake City to Miami.  Bloody 40+ hour drive.  It would have been so nice to just sleep.  And you're kidding yourself about the danger.  In your heart of hearts, you must know that accidents will steadily plummet as these things replace regular cars.

shmokes:

--- Quote from: DrewKaree on August 23, 2007, 09:50:53 pm ---
--- Quote from: shmokes on August 23, 2007, 08:42:12 pm ---Starbucks sells WAY WAY WAY WAY WAY WAY WAY WAY WAY WAY WAY WAY WAY more coffee than McDonald's, Drew.

--- End quote ---

Methinks that's the amount of effort you've put into thinking about this:  "all they sell is coffee, so they HAVE to sell more than them".

http://www.caterersearch.com/Companies/33902/mcdonalds-restaurants-ltd.html

http://www.caterersearch.com/Companies/33917/starbucks-coffee-company-ltd.html#ProfileData

Three times as many units.  Sheer volume.  I get the feeling you believe that I think they outsell Starbucks by brazillions.  I'm simply telling you that in sheer volume, they sell more.

You express amazement that McD's makes that much profit on coffee alone and wonder why Starbucks doesn't make that much.

Is it impossible that you can't put two and two together simply because you've got this mental stumbling block of "but all they SELL is coffee!?!?!?!"  Or does it just boggle your mind that McD's is able to figure out how to sell coffee at a higher profit than Starbucks?

One way or the other, McD's is better at it than Starbucks.  No matter what you believe to be true.

--- End quote ---

Drew, nobody is better at it than Starbucks.  They grow all their own beans.  In fact, when you buy a coke from McDonalds, you are most likely buying a Starbucks product, because Starbucks provides more than 50% of the world's (or at least the U.S.'s) caffeine for softdrinks. 

McDonald's, according to your link, serves 50 million customers per day.  They don't serve anything like 50 million cups of coffee per day.  The vast majority of their customers are there for lunch and dinner.  Most of them are getting a coke with their burger and fries, not a coffee with their McGriddle.  For that matter, not everyone in the morning is even ordering coffee.  A good many of them are ordering orange juice or water or no drink at all.

Both of us are working off a great deal of speculation and gut instinct.  Mine is just right, while yours is misguided.   :P

edit: p.s. BTW, McDonald's profit for 2004 was approximately $400 million.  So, can I just reiterate that it's somewhat unlikely they make a $300 million per day profit on coffee?  It's just kinda tough for the average per-day profit on coffee to equal 3/4 of the entire corporation's per-year profit. 

patrickl:

--- Quote from: shmokes on August 25, 2007, 04:32:14 pm ---edit: p.s. BTW, McDonald's profit for 2004 was approximately $400 million.  So, can I just reiterate that it's somewhat unlikely they make a $300 million per day profit on coffee?  It's just kinda tough for the average per-day profit on coffee to equal 3/4 of the entire corporation's per-year profit. 

--- End quote ---
They probably take a huge loss on the burgers (selling them cheap) just to get people in the restaurant so they will drink coffee  :P

shmokes:

--- Quote from: patrickl on August 25, 2007, 04:41:12 pm ---
They probably take a huge loss on the burgers (selling them cheap) just to get people in the restaurant so they will drink coffee  :P


--- End quote ---

Just when I think I've got the whole thing sussed, Patrick comes along and turns everything I thought I knew on its head. 

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