McDonald’s just reported sales and they are up 2.2% worldwide, missing analysts’ targets. Sales in the US were expected to be up 2.8% and came in at 1.7%. Value meal wars were partly to blame, but if you ask me the whole McCafe product extension is the cause. The New York Times reported the story – not a big one I might add – and nowhere is there a mention of the McCafe coffee line. I didn’t like the gourmet coffee move when I first read about it, and I don’t like it now. It’s not core.
Burger King, on the other hand, which for all its strategic and tactical ups and sideways owns the idea of “flame broiled,” decided not long ago it wanted to upgrade stores with state-of-the-art broilers. If memory serves, they’re supposed to be installed pretty soon. (I’ll have my fact checker get on it.) This is Russ Klein’s major stroke of genius. Crispin Porter, his agency, does great work and the King is the King, but flame broiling is what sets BK apart — and what should help them take a big chunk out of McDonald’s market share. Peace!