Starbucks vs. McDonald’s: The Untold Battle

Slate’s business blog, The Big Money, has a post today comparing two behemoth corporations and their two “rival” Free WiFi networks. This is no doubt prompted by Starbucks’ recent decision to launch Free WiFi in all stores this fall

The writer, Dan Mitchell, is a little frustrated with the public reaction to Starbucks’ mammoth announcement. He’s ticked off at Gawker’s snarky indictment of Starbucks. He’s presumably not amused by any assertion that Starbucks is preparing to control the world. He defends the coffee chain thusly:

“… Several people have [noted] that McDonald’s has been offering free Wi-Fi in its stores for a while now. But here’s the thing: Would you rather work or read Facebook in a McDonald’s, with its too-bright lights, its noise, its often-obnoxious clientele, and its burning-cow-flesh stench, or in the much friendlier environs of a Starbucks? Sure, Starbucks can seem a bit ersatz (again, thanks mostly to its ubiquity rather than to anything specific), but, still. Starbucks is usually fairly quiet and comfortable—the lighting is mellow, and it smells like coffee, not cow flesh. McDonald’s now offers coffee that’s about good as Starbucks’ … but that doesn’t make sitting in a McDonald’s much less unpleasant. McDonald’s is just fine for quickly wolfing down some fried, greasy meat on a bun. It’s not so great for lingering over a nice cuppa.

Another thing: Unlike McDonald’s, Starbucks’ free Wi-Fi will include free access to the Wall Street Journal. This is ingenuous for both Starbucks and the Journal. And it’s something that further illustrates Starbucks’ appeal: It’s for more literate people, and it knows it.”

Off topic, but I do wonder if either McDonald’s or Starbucks is a corporate sponsor of The World Cup, and exactly which one would infuriate phony soccer purists more. And sure, I think Starbucks’ decision and its publicity is a good move.

But Mitchell clearly doesn’t comprehend the McDonalds WiFi strategy. Worse yet, he relies on the wrong generalizations of the two WiFi audiences to compare the two chains. (For example, I’d argue that Starbucks’ clientele is just as “often-obnoxious” as McDonald’s. In my opinion, a lack of pompous Slate writers catching up on their Wall Street Journal feed is a point in Mac’s favor.) And instead, he proves his marketing ignorance.

Think about all the business travel you do. Even if you don’t travel for work – whether by plane, train, or auto, chances are you know someone who does. You know a lot of people who do. Think, also, about the number of ways you’re plugged in at all times when you (or someone else) hits on the road. Cell phone, Blackberry, iPhone, Android, IPad, you name it.

It’s enormously easy to stay in touch with your desktop while traveling. But still, failing all these devices, there are still some occasions when you absolutely need a laptop and a WiFi signal. And, on the heels of a successful branding campaign, just where do you think you might go?

Well, you might very well go to McDonalds. After all, they’re everywhere. And you know you’ve got WiFi. You might duck into an airport store. You might pull off the interstate and fire up your laptop. You might even research your road trip beforehand – knowing precisely when and where you can exit the freeway and dash off a necessary email or memo. I know, because I’ve done exactly that.

And when this happens, you don’t care about the clientele. You don’t care about fat content. You don’t care if McCafe coffee resembles Starbucks in any way, shape, or form. You care only that Mickey D’s has free Wifi, you need it, and you can use it in a pinch.

McDonalds WiFi doesn’t appeal to people who want to eat or spend any time at McDonalds. It appeals to the consumer who knows they might need Wifi at a moment’s notice. By positioning for those consumers, McDonald’s has backed into a market previously off their radar. And backed into a market, I’m guessing, that has exponentially increased in recent years. And despite the scoffs of Slate or Mitchell, I would also bet that McDonalds’ brand equity has increased similarly.

Plus, their fries are awesome. Bet you can’t get those at Starbucks!

JJH

About JJH

John Hanley is a writer and marketing pro in Kansas City and proud owner of 2 smart-mouthed cats. Follow him on Twitter to talk grunge music, Night Court and more. His first novel drops in 2012. He is not cool enough to say "drops."
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