adcharlotte

Watch out, Starbucks, the competition is heating up.

McDonald’s Corp. has chosen Charlotte as one of the first markets in the country to introduce its new espresso-based drinks.

The Oak Brook, Ill.-based fast-food chain is investing nearly $750,000 to renovate 118 Charlotte-area locations to include the McCafe´.

“The popularity of espresso-based drinks is just growing,” says John Link, president of the Charlotte co-op of McDonald’s. “Charlotte is on the leading edge in terms of demographics we want. It’s a great market to roll out the new product.”

McCafe´s serve lattes, cappucinos and other espresso drinks with all of the popular fixings such as flavored syrups and whipped cream.

Offering the new product is McDonald’s latest move to capture market share from specialty coffee houses. In 2006, McDonald’s launched its premium roast coffee. This year, McDonald’s began selling iced coffee.

“We watched these coffee houses just grow and grow,” says Link, who owns nine area locations. “A lot of these coffee shops didn’t have the food that we had, though.”

The first area McCafe´ opened in Conover in November. About 40 stores in the Charlotte area have been renovated since to include McCafe´s. “The results have been pretty amazing,” Link says. “We feel strongly it’s really going to drive sales.”

All of the locations in Charlotte will be complete by Sept. 1. Renovations on locations around the country should be finished in about a year.

Link says McDonald’s will use direct mail and advertisements on TV, radio, billboards, mobile units and newspapers to promote the new products. Each drink costs about $1 less than the same one at Starbucks, Link says.

McDonald’s is constantly working to evolve its beverage options, he says. Upcoming drinks could include smoothies and frappes, he says.

kfinger@bizjournals.com