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Bloomberg reports that McDonald's " is planning to shake up its McCafe brand - part of a bid to challenge Starbucks Corp. and Dunkin' Donuts."

According to the story, "The company will reintroduce the McCafe concept next year, about eight years after it debuted nationwide. The push follows efforts to upgrade its java and get more of its beans from sustainable sources, mimicking a move by its Seattle-based rival."

The story goes on: "Re-emphasizing coffee is critical at a time when food sales are under pressure. Supermarkets have lowered prices, making it more alluring to eat at home instead of at a restaurant. Gas stations and other channels also are increasingly selling prepared meals, adding to the competition.

"McDonald's is looking to build on the success of its all-day breakfast, which rolled out last year across the U.S. It's also upgrading stores with table service and more touch-screen ordering kiosks. The all-day breakfast push helped fuel a return to growth, but the resurgence has been waning: Domestic comparable sales rose just 1.3 percent last quarter, and McDonald's is facing declining foot traffic."
KC's View:
Fascinating that Mickey D's is trying to move upscale into the Starbucks space at a time when Starbucks is trying to go even more upscale itself. One has to wonder, I think, if these folks are taking a risk by abandoning their core markets.