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> if you turn those into "specialty" coffees and upsize them, and then add ~10% sales tax

Right off the bat, it's McDonalds, there are no "specialty" coffees. And the sales tax is irrelevant, what matters is what comes out of the pocket.

$20 for McD-quality coffees and soda is insanely expensive. It puts it above places like Starbucks which makes no sense because there's a Starbucks literally 50m/150ft away from that very same McD.

Pictures of the menu at the closest McDonald’s to MacArthur Park show the coffees at ~$4 and sodas at ~$2-3 all large, which is a more realistic number but still only around half the quoted amount.



Huh?

Of course there are "specialty" coffees at many McDonald's. Well over a decade ago, recognizing the margin and admitting the public interest in sweet, creamy, coffee drinks, they began a shift into direct competition with Starbucks, et al and offer a full menu of Americanized espresso and blended coffee drinks. Like at Starbucks, these easily run over $5 for the large sizes, and they're widely available.

Because of both brand loyalty, or because they also want other things from McDonald's that Starbucks don't carry, it's a extremely successful and profitable product segment for them, even when a Starbucks is "literally 50m/150ft away".

https://www.mcdonalds.com/us/en-us/full-menu/mccafe-coffees....

https://www.mac-menus.com/mccafe-menu/


McD’s made a huge push into the “upscale coffee” market about a decade ago (e.g., competing directly with Starbucks) and it’s paid off.

The gas stations that did similar are also doing well. The era of Irma’s coffee is past.


One of my kids favorite drinks from McDonalds has been an iced mocha for roughly a decade




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