McDonald’s Tests Iced Coffee, Bakery Items

Is it a bid against Dunkin’ Donuts? An effort to muscle in on Starbucks? McDonald’s is trying its hand at some new products, testing specialty iced coffees and bakery goods (think muffins and scones) in a limited number of restaurants in the Northeast.

To help its latest coffee offering, select McDonald’s doled out samples of its iced coffee in the Boston market and other select Northeast locations last weekend. TV spots supported.

The QSR is releasing few details about the products or how long testing will continue, citing concerns about its competition. The company said it was too early to determine whether it would expand the product tests beyond the Northeast— hub of coffee and baked good brands Dunkin’ Donuts and Tim Hortons. Yet early indicators show customers are responding well to the new items.

“As we have said all along, we will continue to offer our valued customers the great taste and convenience that they expect from McDonald’s,” said Beth Bullock, regional marketing director, McDonald’s Boston region. “We will continue to gather customer feedback on these special offerings, and so far, customer response has been very positive.”

McDonald’s recent effort comes as a possible move by the fast-food chain to take on big coffee competitors like Dunkin’ Donuts, but also QSR rivals like Wendy’s, which is gearing up to launch a full breakfast menu in 2007. Testing is slated to begin this year. McDonald’s added a new gourmet coffee line to its menu last fall (PROMO Xtra, Nov. 1, 2005).

“It’s important for McDonald’s to buttress that loyalty and offer a line up now to make sure they keep their morning customers,” said Scott Hume, executive managing editor for the Oak Brook, IL-based Restaurants & Institutions. “Upgrading coffee was one way to do it, but coffee alone won’t carry the day.”

Despite growing concern about childhood obesity, McDonald’s is forging ahead with limited-time product offerings in other markets. In the U.K., for example, the company next month plans to sell a World Cup burger, a sandwich 40% larger than McDonald’s Big Mac, to celebrate its partnership with the FIFA World Cup. The burger, which will be sold though the end of the soccer tournament, will be offered alongside McDonald’s salads and fruit menu items.