McDonald's really wants to compete with Starbucks?
McDonald’s Corp. will help franchisees pay the $1 billion-plus cost of its bid to compete with Starbucks across the country next year.
The company told franchisees this week that it will pay up to 40% of the costs to remodel restaurants to accommodate the machines needed to make lattes, mocha drinks and other specialty beverages. McDonald’s USA President Don Thompson said last month said the remodeling could cost as much as $75,000 for each of the 13,800 U.S. restaurants.
The price McDonald’s pays per restaurant will vary depending on the amount of remodeling needed, but if the company pays $30,000 a restaurant, the total would exceed $400 million. In addition to the cost of remodeling, franchisees would have to pay about $25,000 per restaurant for the new beverage equipment. - Chicagobusiness
$400 million. That's a lot of $1 burgers they'll have to flip. Why don't they concentrate on greening up their business, putting their weight behind better food safety regulation, etc. instead of branching off into a realm they are sure to lose.