Title

Free Coffee At McDonald’s

Now I would love to believe that my comments on Tim Horton’s had the executives at McDonald’s HQ wracking their brains for ways of increasing their coffee business. However I don’t really think that the bigwigs at McDonald’s Place in Toronto were reading “Wasaga Beach Talking” when they decided to offer free coffee during breakfast hours for the next 2 weeks.

John Betts to be precise is the president of McDonald’s Restaurants of Canada.

Now the cost may only be $1-22 a cup but with Canadians drinking 36 million fewer cups in the last 12 months there is a battle for a larger share of this declining market.

Betts is obviously pleased that his company  “sold 4 million more cups of coffee in the fist quarter” of 2009.

Over 60% of Tim Horton’s sales occur in the morning and more than 50% of these are coffee. It is not hard to see who McDonald’s promotion is aimed at hurting. Shares in Tim Horton’s fell 32 cents yesterday to close at $30-47.

With all due respect to Colonel Sanders the coffee business is not chicken feed. During 2008 Canadians bought 1.8 billion cups of coffee from restaurants.  To the end of February this year that figure was 2% down or 36 million cups.

This entry was posted on Tuesday, April 21st, 2009 at 5:48 pm and is filed under I Feel Good. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Wasaga Beach McDonald’s Grand Re-Opening | Wasaga Beach Real Estate-Wasaga Beach Homes For Sale-Wasaga Beach News said at May 28th, 2009 at 5:43 pm

   [...] Ronald give Tim a run for his [...]

Leave a Reply