McDonald's Unleashes Summer Sales Weapon: Beverages

Even before its nationwide advertising campaign begins, McDonald's frappes and smoothies are taking off with consumers.

July 13, 2010

CHICAGO - Sales of frappes and smoothies at McDonald's have been surging, even in advance of the company's national advertising campaign that begins this week, Advertising Age reports.

The line of McCafé beverages, which includes lattes and cappuccinos, is expected to add roughly $125,000 of annual sales to each restaurant, more than compensating for the equipment and remodeling costs of up to $100,000 per restaurant.

In May, McDonald's credited frappes as part of the reason for a 3.4 percent increase in U.S. same-store sales. And smoothies are selling ahead of expectations, according to a McDonald's spokesperson ?" so much so that the chain has asked franchisees to curb promotions in advance of the nationwide ad launch.

The full McCafé line will find its way into 14,000 U.S. locations, and McDonald's is readying its $1.25 billion U.S. advertising push along with an aggressive education campaign that explains the ingredients of its "real fruit smoothie."

An important aspect of the premium beverages is their ability to recruit traffic during off-peak times, as smoothies and frappes are finding a niche among late-morning, mid-afternoon, and even late-night snackers.
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