McDonald's Will Enter the Bagged Coffee Market
) announced it will begin selling its Premium Roast coffee in
grocery stores as packaged ground coffee and beans. The rollout
will begin next year and is the outcome of a partnership with
Moving into the supermarket is the latest step that McDonald's is
taking with its McCafe brand, which has become a more significant
player in a coffee market dominated by
). Though McCafe was first introduced in Melbourne, Australia, in
1993, the cafe within a fast food restaurant was not introduced
stateside until 2001. Since then, McCafe has caught on, with over
1,300 stores worldwide.
A major element to the draw of McDonald's as a coffee company is
price: You can get any size coffee for $1, and more involved drinks
like mochas and cappuccinos are cheaper than the Starbucks
versions. It is likely that the packaged McDonald's coffee sold in
grocery stores will also be a cheaper alternative.
Tim Hortons Introduces New Dark Roast to Keep Up With
In other coffee news, Canada's biggest fast food chain,
) is experimenting with a new blend of coffee, Dark Roast, in the
test market of London, Ontario. That may not sound like big news,
but in its 49 years of business, the company has never introduced a
new blend of coffee.
Said Dave McKay, Vice President of Beverages at Tim Hortons, "I
wouldn't necessarily agree that the changing palate has forced
this, [but] I think people are becoming much more educated in their
coffee choices." That, and the competition is continuing to chip
away at Tim Hortons' Canadian dominance. As of 2009, the company
boasted a full 80% of coffee sales at quick-serve restaurants in
Canada. Now, that figure is 77%. Though that's a relatively small
decline, the company is obviously taking it seriously. In 2009,
McDonald's held 6% of the market. Now, it has 11%.
"Their attempt to try and gain more traction, stop the attrition,
and solidify where they stand is very important now. Because as
McDonald's grows, if Tim Hortons' share of coffee keeps dropping,
they will be in trouble," said Doug Fisher, the president of food
service consulting firm FHG International.
Major Law Firm Investigating Panera
After the close of the markets on October 22,
(PNRA) released a disappointing Q3 earnings report that detailed
less-than-expected sales growth. Investors were also told that the
company had experienced "operation friction" in Q3, the result of
long wait times for customers, bad equipment, and insufficient
staffing. The stock tanked the next day, declining as much as
$9.29, or 5.7%. Since then, the stock has nearly recovered to its
pre-earnings report price.
Today, the major Orlando-based law firm Morgan & Morgan
announced it will be investigating whether or not Panera and some
of its officers violated any federal securities laws when they made
that "operation friction" statement to investors; was the statement
an attempt to manipulate the stock price?
The law firm, one of the nation's largest, specializes in
securities fraud, as well was antitrust law, consumer protection,
and product liability.
Judge Denies Sriracha Factory Shutdown Attempt
With a lawsuit filed on Monday, the city of Irwindale, California,
tried to close a Huy Fong Foods factory citing complaints from
local residents about a strong smell that was causing burning eyes,
irritated throats, and headaches. The news caused a lot of hot
sauce fans to shudder: Huy Hong Foods produces Sriracha hot chili
sauce, and the Irwindale factory is the only place the product is
Yesterday, Judge Robert H. O'Brien of the Los Angeles County
Superior Court denied the city's request. He told June Ailin, the
attorney for the city, "You're asking for a very radical order on a
24-hour notice. You probably should have come in earlier."
The Superior Court ruling will allow the plant to finish processing
all the peppers it needs to make next year's hot sauce supply. As
it turns out, there is just over a week left in the
Last year the city contacted the company's founder and CEO David
Tran to complain about the smell. Tran told city representatives
that carbon filters were installed and that another layer of
filtration was being installed. Moreover, air quality inspectors
detected no smell 20 feet from the factory's exhaust system. In the
factory's lobby, they noted a faint chili odor, rated a 1 on a
scale to 10.
Despite yesterday's ruling, another hearing is set for November 22.
For more on Huy Fong Foods, Sriracha sauce, and David Tran, read
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