Hotline: 1800 102 2007
X
Search Business Opportunities
Jun, 04 2015

Starbucks is planning to become the next McDonald\'s

Capturing millennials, defined by Goldman Sachs as anyone aged 15-35, and their children is key because they could become lifelong customers.

Starbucks, the global chain is planning to be next McDoanld’s, reported NYT.

The coffee chain is constantly introducing improved food offerings, according to a recent report by Deutsche Bank.

According to the report by the firm, the ore food offerings will increase sale at6 Starbucks.

"Starbucks is virtually the only large incumbent that can offer millennial parents the convenience of a (fast food chain) and food they would not feel guilty/embarrassed to feed to their kids," Goldman Sachs' analysts write.

However, traditional fast food chains are losing market share to up-and-coming establishments like Chipotle as millennial customers search for healthier options.

This shift in consumer mindsets puts Starbucks in a unique position to take over, according to a recent report by Goldman Sachs.

The coffee chain has been expanding its menu to include more food options such as sandwiches and salads. It has also added drive-thrus to many locations.

Starbucks has also been "steadily expanding kid-friendly snack options, such as organic fruit squeezes, organic food snacks, and organic Greek yogurt," according to Goldman Sachs.

Capturing millennials, defined by Goldman Sachs as anyone aged 15-35, and their children is key because they could become lifelong customers.

"With the continued expansion of the lunch platform and investments in both drive-thru and in-store throughput (Starbucks') advantages in these areas appear set to expand," the analysts write.

With more than 20,000 locations around the world, Starbucks also has the size and power to compete with McDonald's.

The fast food giant has more than 36,000 locations around the world. By comparison, Chipotle has 1,700.

McDonald's is struggling to convince parents that its food is healthy.

Families with a child age 12 or under represent 14.6 per cent of McDonald's customers today, down from 18.6 per cent in 2011, according to Technomic.

"Kids are more sophisticated," Mary Chapman, director of product innovation at Technomic, told Crain's Chicago Business in September. "They're not just looking for the Golden Arches and the toy."

Customers are demanding "great-tasting, high-quality food," and McDonald's needs to make changes to some of its core menu items to meet that demand, new CEO Steve Easterbrook said on a call with analysts Monday.

In a recent step in that direction, the company pledged to remove antibiotics and hard-to-pronounce ingredients from its chicken.  

Comment
Related opportunities
  • Luggage, Hand bags & Backpacks
    About Us: Welcome to Doubleu Bag. We are proud to introduce..
    Locations looking for expansion Rajasthan
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Jaipur Rajasthan
  • Car wash / Ceramic Coating / Detailing
    Start your own express car wash franchise business and be..
    Locations looking for expansion Uttar Pardesh
    Establishment year 1987
    Franchising Launch Date 2010
    Investment size Rs. 10lac - 20lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Gautam Buddha Nagar Uttar Pardesh
  • Fashion accessories - women
    About Us: Malaysia's Leading Chain of Fashion  & Lifestyle concept stores. The..
    Locations looking for expansion New Delhi
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • Healthcare Products
    About Us: Fitnesstack is a premier brand for Fitness and Bodybuilding..
    Locations looking for expansion Haryana
    Establishment year 2013
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities