A battle of the brews: coffee fight

A typical breakfast from McDonald's: an Egg McMuffin, hash browns - and an iced vanilla latte?

Three local McDonald's restaurants have plunged into the specialty coffee market, offering high-end beverages at lower prices than competitors.

The company is attempting to lure customers away from gourmet coffee shops as many Americans are cutting back on spending in light of the country's recent economic troubles.

"We're not just targeting Starbucks customers, we're targeting specialty-coffee drinkers in general," said Matt Ingold, supervisor of the McDonald's in Hillsborough.

"Today's customers are demanding different beverage options, and McDonald's has the opportunity to cater to their needs."

As of last week, Ingold's store, as well as stores on Fordham Boulevard and N.C. 54 near the Streets at Southpoint, offer the gourmet coffee line.

The menu includes cappuccinos, hot chocolate, premium roast coffee, and regular and iced mochas and lattes.

A remaining question is whether loyal customers of Starbucks, the world's leading seller of gourmet coffee, will start heading to the Golden Arches for their caffeine fix.

For those on a budget, maybe. A medium latte from McDonald's costs $2.49, compared to $3.20 for a medium latte from Starbucks.

But for those who go to Starbucks for its sophisticated and cosmopolitan atmosphere, maybe not.

Freshman Annie Duncan, who was drinking a frappuccino at the Starbucks on Franklin Street on Friday, said she still gets her specialty coffee from Starbucks despite McDonald's lower prices.

"I'd come here and pay more for the atmosphere," she said. "I like to do my homework here."

But Ed Martin, a 19-year-old Greensboro resident, said price could be a determining factor for him.

"If it tastes good, I'll get it at McDonald's instead of Starbucks," he said.

The McDonald's on Franklin Street, closest to UNC's campus, will close for renovations at the end of February and reopen by May. When it does, it will offer gourmet coffee, store manager Mary Kwawu said.

McDonald's gourmet coffee line is part of a nationwide initiative. The Triangle was one of five test markets nationwide.

The line will spread across the country and a national advertising campaign will launch, Ingold said.

Because McDonald's hasn't started advertising it, many people are still unaware of the gourmet coffee.

But Ingold said his store has seen an increase in total sales since it started offering the high-end coffee.

And the line contributed to a 7.4 percent increase in global sales for the second quarter in 2007, according to a company press release. Total revenues went up another 7 percent for the third quarter.

Contact the Features Editor at features@unc.edu.