Assignment Three: McDonalds and Starbucks
Everyone in the world knows about McDonald and Starbucks. They know about the delish hamburgers to a nice hot venti white chocolate mocha. These two companies have built themselves from starting in the United States to becoming global. They have made it where it is affordable for the average person be able to buy their products and still enjoy it as much as the next person. They both starve to make sure that their customers are happy with their products so that they come back and buy more from them.
McDonalds and Starbucks have worked hard to make sure that they are making the right decision. They have made it where their customers can come to their place of business and enjoy eating or drinking coffee while enjoying playing on the internet, doing their homework, or even doing a work project. When the recession in our country started people where having a hard time keeping up with their bills, one of the highest bill seems to be your cable and internet. These two companies set up their environment where people wanted to come and enjoy themselves knowing that they could get on the internet for free and be able to do the things that they needed to know by the time it needed to be done by.
A place like McDonalds maybe more suitable for a mom with children that needs to get things done on the computer. There is a play ground for the children to play on and there are typically table right in that area so that they are able to watch their children. Starbucks in set up for a relaxing environment for a college student, a mom that is trying to get away from the kids, and even a business woman that is trying to get away from the office. Both of these places have their ups and downs.
McDonalds has always tried to appeal their customer by what they love the most. They have brought out their value menu so that people that are having money problem or even if they are wanting to get something small and not pay for a full meal combo. McDonalds is not only known in the United States, they are also known all over the world. McDonalds makes their store appealing to the local community. “According to McDonald’s franchisee owners Bob and Barbara Houck, the re-design of the Pikesville store may be considered a model for other McDonald’s nationwide. “We hope the Whitehead and Appel design will expand the trend toward a fresh, sophisticated look for the chain,” Barbara says. “Our goal was to create a warm and inviting store that is accessible to all members of the community.” (“McDonalds tests new,” 2008)
When Starbucks started they had to compete with McDonalds, Burger King, and other fast food restaurants that provide coffee for their customers just as well as Starbucks. “Early on, burgers and fries, and later breakfast meals were strengths for McDonad’s. Drinks were an afterthought. It took a while, but the chain noticed the big profits Starbucks was raking in from coffee sales. McDonald’s knew it could never get away with $5 coffee drinks. Well aware of its customer base, McDonald’s is “always keeping an ever-vigilant eye on everyday affordability, which is the most important thing for our consumers,” CEO Jim Skinner said during the company’s most recent conference call with shareholders. “They get pinched everywhere,” Skinner added. “They should not suffer the same fate at McDonald’s.” (Brush, 2011) Starbucks had to show what they were and how they worked. Now they are not just in the United States, they are all over the world.
Just like McDonalds, Starbucks has to appeal their customer in all regions. They have to show that they want to please each person that comes in their place of business. In Germany, the bring the type of coffee and the pastries that is more common in Germany. In China, things are always on a go that they have cart on the go with Starbucks. Here in the United States they have drive thru because we are always on the go and that makes it easier. “Unlike in the U.S., Starbucks locations in China are the antithesis of grab-and-go. Most patrons visit in pairs or groups and the atmosphere inside the store is designed to let them linger for hours, with large community tables and “living room-style configurations” of couches and chairs. Morning business is another differentiating point; most business in China is conducted after 2 p.m.” (Tepper, 2012)
These two companies have gone through a lot to get where they are at now. But now they are multimillion dollar companies. They have set up their entire store to look alike but at the same time it has a part of the local community within the store. Starbucks is on a different level than McDonalds is, because they are met just for coffee, tea, and small snacks. McDonalds is there for their food, desserts, and even their coffee. They both starve to make sure that their customers are happy with their products so that they come back and buy more from them.
(2008). McDonalds tests new store design. (2008). Print Photo. Retrieved from http://www.qsrmagazine.com/news/mcdonalds-tests-new-store-design
Brush, M. (2011, July 5). Msn money. Retrieved from http://money.msn.com/investment-
Tepper, R. (2012, NOVEMBER 06). Starbucks appeals to regional tastes with tweaks to decor and offerings . Retrieved from http://www.huffingtonpost.com/2012/11/06/starbucks-regional-tastes_n_2083193.html