Companies in this industry operate restaurants that provide food served to customers who order and pay at a counter. Demand is driven by consumer tastes, demographics, and personal income.

McDonald launched its McCafe campaign in which it sells premium specialty coffee beverages at a slight discount to Starbucks. McDonalds has an excellent platform from which to compete as it already has so many stores in prominent locations with drive-thru windows.

Dunkin’s Donuts, uses its donuts and the rest of its menu as the draw. The customer can choose between a coffee or a coffee and a donut.

Product quality of Starbucks, it provides the highest quality of coffee brewing through its onsite brewing and smelling. McDonalds utilizes automated brewing with less smelling. Customer responses the qualify of coffee from “decent” to “absolutely disgusting”. Dunkin delivers products with the same high consistency and quality.

Product variety: Starbucks offer hot and cold coffee, beverages, and some bread. McDonalds offers hamburger, sandwich, chicken, spaghetti, French fries, and breakfast meals. Dunkin offers donuts and sandwich, burrito and breakfast meals.

Customer loyalty: Starbucks has 33M Facebook fans, former Starbucks consumers begun visiting Dunkin’ Donuts and McDonalds or purchased in home coffee brewers and espresso machines. While McDonalds has low consumer confidence continues to negatively affect overall retail sales and the IEO segment, McDonalds