Canadian Business recently wrote a story about the troubles McDonald’s Canada is facing and there are a few notable tidbits in there about their planned revitalization – much of it has to do with their menu items and re-designed stores. In addition, it was announced a few days ago that Ronald McDonald was getting a complete makeover to a more stylish clown.
From a Tim Hortons perspective, the two companies have been battling it our in a coffee war for the last number of years, but Timmies continues its dominance and proudly pours 8/10 cups per day. One way that McD’s wants to squeeze into this market is by giving away free coffee. They do this tactic every year and the extravaganza usually last for a couple weeks.
John Betts, CEO of McDonald’s Canada, stated in an with CanadianBusiness that “we needed to do something bold to disrupt the market and get people talking—and nothing works like free.” The program launched in April 2009 and the total number of free coffees that McDonald’s has handed out has risen to 113 million. That’s a huge amount of java, but Betts noted their coffee sales have tripled and now has 11% of the brewed-coffee business in Canada. Still a far cry from Tim Hortons who has about 77% market share.