BIGresearch: Coffee Wars, Starbucks Still #1, McDonald’s #2 and Rising, Dunkin’ Donuts #3

Analysis Profiles McDonald’s & Starbucks Coffee Drinkers

COLUMBUS, OH -- (MARKET WIRE) – 5/28/09 – McDonald’s is waging an all-out assault on the coffee industry, and they seem to be gaining ground in the battle of the baristas. Although Starbucks is still #1 (9.2% of consumers frequent the coffee house most often for their java fix), McDonald’s has consistently grown since May of 2007, according to an analysis of BIGresearch’s May 2009 Consumer Intentions & Actions (CIA) Survey (http://www.bigresearch.com). With the roll out of a multiplatform ad campaign estimated at more than $100 million, the Golden Arches will likely continue to build momentum.

Which Fast Food Restaurant or Coffee Shop do you purchase COFFEE at most often?

                  May      Aug      Nov      Feb      May      Aug      Nov      Feb      May
                  2007     2007     2007     2008     2008     2008     2008     2009     2009
Starbucks         9.8%     9.5%     9.8%     11.2%    9.8%     9.6%     8.9%     9.6%     9.2%
Dunkin' Donuts    4.8%     4.8%     4.4%     5.1%     4.9%     4.7%     4.6%     5.0%     4.1%
McDonald's        3.3%     3.7%     4.7%     4.9%     4.0%     4.1%     4.6%     4.9%     5.4% 

Source: BIGresearch, CIA-Trends

According to the analysis, McDonald’s coffee drinkers (those who purchase coffee most often from McDonald’s) tend to be older than Starbucks drinkers with an average age of 47.7 (vs. 39.2 for Starbucks drinkers). 46.8% of Starbucks drinkers are in the 18-34 age range, compared to 25.8% for McDonald’s.

                          AGE PROFILES                  MARKET PREFERENCE BY AGES

         Starbucks        McDonald's                Prefer        Prefer
         Coffee Drinkers  Coffee Drinkers           Starbucks     McDonald’s
18-24    20.1%            8.8%             18-24    14.9%         3.9%    
25-34    26.7%            17.0%            25-34    14.1%         5.4%    
35-44    19.2%            15.8%            35-44    9.3%          4.6%    
45-54    15.8%            21.1%            45-54    7.3%          5.8%    
55-64    9.7%             17.4%            55-64    5.9%          6.4%    
65+      8.5%             19.9%            65+      4.5%          6.2%    

Source: BIGresearch, CIA-May09

More Starbucks coffee drinkers are single at 29.1% (vs. 19% of McDonald’s drinkers) and a higher percentage hold professional/managerial positions at their place of work (27.2% vs.15.7%). They also report a higher annual income of $67,487 vs. $55,572.

Other key findings:

• 33.7% of McDonald’s coffee drinkers are confident/very confident in the economy, vs. 30.3% of Starbucks drinkers.
• 72.7% of McDonald’s drinkers are focusing more on needs over wants, vs. 65.7% of Starbucks drinkers.
• 44.2% of McDonald’s drinkers are buying more store brand/generics vs. 36.2% of Starbucks drinkers.
• 26.4% of McDonald’s drinkers feel better about their economic situation, vs. 34.4% of Starbucks drinkers.
• 20.8% of McDonald’s drinkers are starting to spend more on discretionary items, vs. 21.4% of Starbucks drinkers.

For additional complimentary data and charts: http://info.bigresearch.com/.

About BIGresearch
BIGresearch is a consumer intelligence firm providing analysis of behavior in areas of products and services, retail, financial services, automotive and media. BIGresearch conducts the monthly Consumer Intentions and Actions Survey (CIA) of 8,000+ respondents and the semi-annual Simultaneous Media Survey (SIMM) of 15,000+ respondents. More information is available at http://www.bigresearch.com

Chrissy Wissinger
BIGresearch
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