Fast food chains: Come for the coffee, stay for the cheeseburgers and fries
Burger King QSR QSR,
announced a new $5 coffee subscription on Friday, allowing customers to get a small cup of hot brewed coffee every day for a month.
To access the Burger King Cafe Coffee subscription offer, customers can download the Burger King app. The service only applies to a small hot coffee and cannot be combined with a delivery note.
“The discount coffee comes at a time when America is facing an obesity epidemic that some say is fueled in part by junk food.”
A small cup of coffee at Burger King without the subscription service ranges between $1 and $1.29 depending on the market, but the Miami-based chain has announced that it will lower the price of a small cup of coffee to 50 cents for those who don’t. participate in the subscription service starting Monday. A little coffee at Starbucks SBUX,
to compare, is $1.85; and a little coffee at McDonald’s MCD,
“Competition between Starbucks and McDonald’s and Burger King will continue to intensify,” said Tyler Higgins, managing director and head of retail practice at AArete, a global consulting firm.
Starbucks is all about coffee, while McDonald’s and Burger King use coffee to drive traffic, he said. The hope is that people come for the coffee and stay for the cheeseburgers and fries.
The discount coffee comes at a time when America is facing an obesity epidemic that some say is fueled by easy access to junk food. In fact, a recent study showed that portion sizes, calorie counts, and sodium in appetizers, sides, and desserts increased significantly at 10 of the top fast food restaurants in the United States.
“The number of customers frequenting quick-service restaurants only increased by 1% in 2018, according to the NPD Group.”
The study, published in the Journal of the Academy of Nutrition and Dietetics, said the results show menus are less healthy overall than they were 30 years ago, despite the addition of options. healthier ones like veggie burgers, salads and apple slices.
The number of customers frequenting quick-service restaurants only increased by 1% in 2018, according to a market research firm NDP Group.
However, cafes are among the fastest growing segment of the fast food industry, according to restaurant consultancy Technomic. Cafe sales increased 41% to $23.4 billion 2011 to 2017. Mintel expects sales to reach $28.7 billion by 2021.
A number of other fast food restaurants have implemented reward programs for their coffee programs. McDonald’s –– which beat Starbucks, Burger King and Dunkin’ US:DNKN
coffee in a blind taste test by Consumer Reports Magazine –– offers customers a free medium hot McCafé drink when they buy seven hot drinks.
Last year, the chain announced it was testing cold brew, one of the coffee industry’s hottest beverages, in its San Diego market, presumably to compete with giants like Dunkin’ and Starbucks. And it added three new espresso drinks to its coffee menu in 2017, the first coffee addition menus since 2009.
“To capitalize on the growing demand for delivery, earlier this year Starbucks announced a partnership with UberEats.”
Other chains make coffee the main event. Dunkin’ recently dropped “Donuts” from its name last year. Consumers can earn five points for every dollar spent using the Dunkin’ Perks app and redeem a free drink of any size for every 200 points earned. Customers can also sign up for the coffee subscription service which has a choice of ground coffee or K-Cups available for home delivery.
To capitalize on the growing demand for delivery, Starbucks earlier this year announced its partnership with UberEats to deliver coffee, snacks and other items to six major US cities, including New York, San Francisco, Boston, Chicago, Los Angeles and Washington DC via UberEats. application.
Burger King QSR Stock,
are up 21% since the start of the year, while the Dow Jones Industrial Average DJIA,
is up 10.8% and the S&P 500 SPX index,
is up 12.6%. Starbucks SBUX Stock,
are up 9.7% year-to-date, while McDonald’s is up 4.4%.