But as CBS 2 HD has learned, all that competition could end up
costing you.
Who doesn't like a creamy, frothy jazzed up cup o' Joe? And with
many of us grabbing that expensive cup of coffee daily, competitors
of Starbucks are lining up. McDonald's is now promising coffee bars
complete with Baristas whipping up everything from a cappuccino to a
frappe.
"For the consumer it's a win-win," said coffee consultant Judy Ganes.
"There's better coffee at more locations."
Ganes tracks production and pricing of coffee and says Starbucks
first poached from McDonald's playbook by offering drive-thrus and
breakfast and lunch. Now the roles have reversed.
"McDonald's is hoping this brewing competition will add a billion
dollars to its bottom line and is also promising consumers their
coffee will cost 60 to 80 cents less," Ganes said.
At $2.11 a cup, the average New Yorker buying a grand Starbucks drip
spends $633 a year on her caffeine fix. But Ganes warns there could
be a dark side to increased consumption. Despite years of rising
demand, coffee producers haven't grown more coffee, leading to
higher demand, higher prices and possibly even a shortage.
"Producers aren't make enough money and don't have the incentive to
expand," Ganes said.
That could leave a bitter taste in a caffeine lover's mouth.
McDonald's first tweaked its coffee last year, offering a bolder
blend. It plans on rolling out coffee bars in all its restaurants by
2009.
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