Word: mcdonaldization
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Dates: during 2000-2009
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...notice too much change, insists José Sette, head of operations at the ICO. The cost of the coffee in your Dark Berry Mocha Frappuccino "is very small," he says. Expensive store rents and barista wages, he adds, "are much more important than coffee." (Read "Latte with Fries? McDonald's Takes Aim at Starbucks...
...McDonald's (MCD) plans to march into Europe and will have 1,300 McCafe locations within the next few years. McCafe only has one significant competitor and that is Starbucks (SBUX) which has already been beaten by McDonald's at every turn in the U.S. (Read: "Latte with Fries? McDonald's Takes Aim at Starbucks...
...McDonald's will press the advantage of its brand and financial might in Europe. The region is already one McDonald's best in terms of sales growth. It can afford to finance the rent and construction costs for new locations. It has a nearly bottomless marketing budget. And, in most cases it can and will undercut Starbucks on price...
...Starbucks has been in trouble because the recession has hurt its sales and McDonald's has been a formidable competitor. Its troubles are getting worse and the solutions are non-existent...
...Read: "Latte with Fries? McDonald's Takes Aim at Starbucks...