McDonald’s Canada has launched a new $1 CAD coffee offer at its 1,400 restaurants to attract budget-conscious customers. The offer is aimed at providing affordable options as food prices rise, positioning McDonald’s favourably against competitors like Tim Hortons and Starbucks.
McDonald’s Canada launches affordable coffee to attract budget-conscious consumers
McDonald’s Canada has launched a new 10-ounce “daily” coffee offering for CA$1 (US$0.73) at its 1,400 restaurants to attract price-conscious consumers.
According to World Coffee Portal, the fast-food chain announced in a press release that the low-cost offering includes its McCafé Premium Roast coffee and can be upgraded to medium, large, and extra-large cup sizes for CA$0.25 ($0.18), CA$0.50 ($0.37), and CA$0.75 ($0.55), respectively. Taxes are not included in the promotional price, making the small “$1 a Day” offer $1.05 ($0.77).
“We strive to be a brand for everyone and understand how important it is to provide affordable options to our customers every day,” said Alyssa Buetikofer, Director of Marketing, McDonald’s Canada.
According to data released by Statistics Canada, as of January 2024, prices at food and beverage establishments in seven Canadian provinces have increased by 5% annually. Over the same period, the government agency reported that sales of food and beverages away from home have declined by 2% as consumers tightened their finances.
McDonald’s Canada’s pivot to low prices puts the fast-food chain at a significant price point below market leaders Tim Hortons and Starbucks and above convenience store chain Circle K.
Ontario-based Tim Hortons has already launched C$0.99 ($0.73) coffee offerings. However, it currently charges C$1.83 ($1.34) for its 10-oz drip coffee, while Starbucks prices its 8-oz concoctions at C$2.65 ($1.95). Circle K’s currently charges C$1.29 ($0.95) for a small drip coffee, while prices for medium, large and extra-large quantities will increase to C$1.59 ($1.17), C$1.89 ($1.39) and C$2.10 ($1.54), respectively.
It remains to be seen whether McDonald’s in Canada will stick with its $1 coffee strategy.
McDonald’s faces pressure from franchisees over rising coffee prices, subsidy demands
The Wall Street Journal reported in June 2022 that many McDonald’s licensees in the United States had discontinued the sale of $1 coffee drinks, originally introduced in 2013, and raised their prices in response to increased operating expenses.
In June 2024, the fast food chain implemented a $5 menu in its U.S. restaurants and introduced a $1 CAD coffee in Canada. The National Owners Association, an independent advocacy group for McDonald’s franchisees, has supported more affordable alternatives. However, it has also called for subsidies from McDonald’s to ensure that operators can continue to offer discounts in the long term.
