What is the fact? McDonald's responded by citing fluctuations in supplier stock prices and Hong Kong McCafe's retirement
On September 4th, McDonald's Hong Kong announced on its mobile app that McDonald's Coffee is retiring. At 6pm that evening, McDonald's coffee, including frozen/hot premium strong aroma coffee and premium ground coffee, will be discontinued.
This news has sparked heated discussions among consumers. So, has McCafe really exited the historical stage in Hong Kong?
In response to this, McDonald's responded to First Financial News by saying, "We have noticed that McDonald's has recently updated its coffee menu in the Hong Kong market. McDonald's in mainland China has no adjustment plans and will continue to provide freshly brewed coffee and freshly ground coffee, such as its flagship product 'Milk Iron', to provide customers with high-quality coffee choices."
Sure enough, on the evening of September 4th, McDonald's announced on its official Facebook account that 250 McDonald's coffee shops in Hong Kong would upgrade their free package to McCaf é instant black coffee starting from September 5th. In addition, we will also launch freshly ground milk coffee at discounted prices.
The retirement of McCafe in Hong Kong has caused fluctuations in the stock prices of its suppliers. As of September 5th, McDonald's Hong Kong supplier Jierong International Holdings saw its stock price drop by 2.78% on that day. Jierong International was founded in 1932 and is an investment holding company primarily engaged in providing coffee and black tea catering planning services. Its customers include McDonald's specialty stores in mainland China and Hong Kong, Yoshino's, 7-11, Carrefour, Happy Valley, Cuihua, Taixing, and Italian Noodle House.
McCafe is a professional handmade coffee brand under McDonald's, and its ambition in the Chinese market is not small.
In September 2022, McCafe publicly stated that it would accumulate momentum for faster growth and is expected to add about 1000 new stores in China by 2023, most of which are located in third tier cities, bringing high-quality and cost-effective daily coffee to more consumers. At that time, Luo Wei, Senior General Manager of McDonald's Shanghai Market, introduced that McCafe was a member of the McDonald's family. In the cooperation model between McCafe and McDonald's, McCafe could enjoy the advantage of zero rent and also share the training and management system of McDonald's employees. It relied on McDonald's strong supply chain advantages and also on McDonald's product line, and many explosive points were the combination of coffee and products.