McDonalds Canada is taking on Tim Hortons and Starbucks in one go by opening standalone versions of its successful McCafé concept in highly-trafficked areas of Toronto the first outlets of their kind in North America.
The veteran fast-food chain has made serious inroads into Canadas restaurant coffee market since reformulating its classic brewed coffee blend in 2008, and in 2011 began expanding its McCafé concept, which sells coffee, espresso drinks, baked goods and smoothies, into 1,200 of its 1,400 restaurants across the country.
But the new outlets, opening Wednesday in the commuter hub of Torontos Union Station and in January inside the highly trafficked downtown Exchange Tower, represent a bold step for McDonalds Canada, which has managed to escape the sales troubles faced by its U.S. counterpart, due in no small part to the burgeoning growth of its coffee and breakfast business. The new standalone locations will be rolled out across Canada if they perform well, and could stand to meaningfully grow the mature chains market share.
In addition to its fast-growing category of coffee, the standalone McCafés will have an entirely new lineup of soups, salads, cold and hot sandwiches and bagels, as well as baked goods. It also has an ace up its sleeve that answers a longtime consumer demand all-day servings of its four varieties of McDonalds Egg McMuffins.
