McDonald's Temporarily Halts Sales of Espresso-based Drinks

McDonald’s has temporarily halted sales of espresso-based drinks like lattes, cappuccinos, and macchiatos at some U.S. locations due to a safety issue with its espresso machines.

Key Details:

1. Cause: Manufacturer Melitta issued a "stop use" recommendation for the affected $3,000 machines, citing an unspecified safety concern. An investigation is underway to identify the problem and develop a remediation plan.
2. Impact: The stoppage appears widespread, with McDonald’s app listings showing espresso drinks unavailable in multiple cities, including Atlanta, Dallas, and New York.
3. Exceptions: Other coffee options, such as brewed hot and iced coffee, remain available.

Business Implications:

• Coffee is a significant revenue stream for McDonald’s, with nearly 8 million cups sold daily. Specialty drinks, such as those made with espresso, are part of its push into higher-margin beverage categories.
• This disruption follows other challenges for McDonald’s, including an E. coli outbreak that hurt sales. The company is investing $100 million in marketing and support for affected franchises to recover customer confidence.

Specialty Coffee Growth:

McDonald’s has been expanding into the specialty coffee market, including its launch of CosMc’s, a spinoff brand focusing on premium coffee beverages. CEO Chris Kempczinski has highlighted specialty drinks as a strategic growth area.

While Melitta works on resolving the issue, McDonald’s will likely face challenges satisfying customers looking for higher-end coffee options during this temporary halt.
Source: CNN 
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