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Corporate Strategy Case Study

Case Title:

McDonald’s McCafe: The Re-imaging Efforts

Publication Year : 2005

Authors:  Priyanka Ramgopal & Souvik Dhar

Industry: Retailing


Case Code: COS0028

Teaching Note: Not Available

Structured Assignment: Not Available

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McDonald's, the largest fast food restaurant chain in the world, started witnessing a decline in its sales during the 1980s. To turn its fortunes around and also to project an upscale image, McDonald's decided in 1993 to introduce the concept of McCafé. McCafé was a full service premium coffee bar, located within the premises of a McDonald's restaurant as an extension or as a stand-alone restaurant. Although McCafé had proved to be a success for McDonald's, critics were sceptical about its continued success

Pedagogical Objectives:

  • To discuss whether McCafé would be able to sustain its success in the future in the face of increasing competition

Keywords : McDonald’s Corporation, McCafe, Premium coffee shop, Upscale image, Image makeover, Marketing Strategies Case Study, Down-market image, High-end customer group, Customer preferences, Retail market for speciality coffees, Starbucks

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