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July 2007

News & Media

Japan McDonald’s to Open McCafes  
July 16, 2007 

TOKYO – McDonald’s in Japan will give Starbucks a run for its money with a new chain of coffeehouses, the fast-food chain reported last week, according to the Associated Press.

The Japan unit of U.S.-based McDonald’s Corp. will debut 15 pilot McCafe locations in the Tokyo area in late August, according to a company release.

McCafes will sell drinks at lower prices to capture the family market, the release said. The stores will be the chain’s initial attempt at running a coffee shop business. McDonald’s told the Associated Press that it is looking into opening additional McCafes throughout Japan during the next fiscal year.

Overall, Japan’s cafe business has been decreasing, reaching only $8.61 billion last year, which was 5 percent less than in 2004. However, sales at specialty coffee shops such as Starbucks have advanced. The Seattle-based coffee chain opened its stores in Japan in 1997, and now operates almost 700 stores across the country. Starbucks sales rose 16 percent last year to reach $646 million.