McDonald's kicks up its drink options
The company is counting on frappes, smoothies and lattes to bring in $1 billion this year.
Pop quiz: What's expected to add $125,000 to the sales of each McDonald's restaurant in America this year?
The answer is beverages. And that's why McDonald's (MCD) has pounced on frappes, smoothies and other drinks as the economy struggles to improve.
McDonald's beverage line is also estimated to contribute $1 billion to the company's bottom line this year, Advertising Age reports. The company officially begins advertising the beverages this week.
Even before the ad push, McDonald's is seeing nice customer response, writes Emily Bryson York. Frappes helped boost same-store sales by 3.4% in May, the company said, and smoothies were also selling well.
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Women are the most likely target audience here, York writes.
"Another important aspect of the premium beverages is the ability to build business in off-peak times," York adds. "While the drinks are an easy upgrade from a coffee or soda, smoothies and frappes also fit the bill for a late-morning or midafternoon snack."
McDonald's is also tinkering with its milk shakes, York writes. They're being served in clear cups with whipped cream and a cherry. And the company is doing a small test of ice-blended strawberry lemonade.
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