Sunday, December 09, 2007

McDonald's coffee aid perks up its franchisees

By Mike Hughlett | Tribune staff reporter

McDonald's Corp. confirmed Friday that it will support U.S. franchisees by paying for up to 40 percent of the costly restaurant renovations needed for the rollout of its specialty coffee program.

McDonald's foray into specialty coffees, smoothies and other upscale beverages constitutes one the company's largest product introductions ever. And it will be expensive, costing franchisees around $25,000 for equipment and up to $75,000 to retool the restaurants to handle the new beverages.

Some franchisees have worried whether the potential payoff for the beverage offensive is worth the big investment, one of the biggest they have ever been asked to make by McDonald's, the Tribune reported this week. Franchisees own about 85 percent of McDonald's nearly 14,000 U.S. restaurants.

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