...most franchisee agreements contain geographical exclusions which prevent
cannibalization from new stores within the network, but McCafés would be
an exception to the rule because they are a different concept with a different
menu that includes a lineup of grilled cheese and specialty sandwiches. “You
could put (standalone McCafés) in areas where you would not put an existing
McDonald’s,” Arifuzzaman said. “It is a way to grow McDonald’s footprint
and potentially steal more share.”
McDonald’s extends its cafe chain rollout as it battles Tims and Starbucks - Fin. Post
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1 comment:
I put that quote up because that consultant guy doesn't know what he's talking about.
Few franchises include territory protection. Of course the proliferation of McCafes
would cannibalize sales from nearby McDonald's stores. But his comment does include
the McSpin corporate will use in justifying these additional locations:
"“You could put (standalone McCafés) in areas where you would not put an existing
McDonald’s”
Yeah, sure.
.
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