Thursday, October 10, 2019

Ethical Advertising in the Coffee Industry by McCafe - Part 1


In 2008, McDonald’s made a statement with its McCafe advertisements around the city of
Seattle - the birthplace of Starbucks. One billboard in particular was located just outside the
Starbucks headquarters that read “Four bucks is dumb - now serving espresso.” The
wording was harsh but McDonald’s called it a “light-hearted fun approach to our brand”
(Ankarcrona, 2008). Although this was a direct attack at Starbucks, as they are known for
selling expensive espresso beverages, we feel that advertisement was ethical. 
With the launch of McCafe, McDonald’s was doing a service by letting the public know that they have expanded and will be selling more than burgers and other fast food items. They have the right to do this through freedom of speech in their pursuit of profit. McDonalds is encouraging a cheaper option to beverages sold at Starbucks which in turn may actually increase satisfaction and happiness for consumers as they are able to get more for their dollar. It is up to the consumer in their decision to weigh out the benefits and costs of buying an espresso beverage at McDonalds compared to Starbucks. This attack to Starbucks will stimulate competition between the two already thriving companies.
Competition stimulates the economy, which can translate to a higher quality of life.   The advertisement itself is simple and clever. There are no computer generated images or enhancements to manipulate a consumers idea of the beverage. Coffee is a relatively healthy product when consumed in moderation, it is more ethical for McDonald’s to be promoting this product opposed to other fat and sugar filled beverages they sell such as the “Triple Thick Milkshake”. McDonalds has been transparent that they are a for profit company, however, they have also promoted what they do with a portion of their profits. When someone buys a coffee at McCafe, they know a portion of profits go towards the funding of the Ronald McDonald House Charities. The Ronald McDonald House Charities “provides families of sick children with a home to stay in while their child is being treated at a nearby hospital” (RMHC Canada, 2019) which is something the consumer can feel good about. 
On-going ethical dilemmas in the coffee industry are the exploitation of the coffee farmers, as well as the sustainability of the environment. McDonalds is clear about their intentions in regards to these issues and what they are doing to help with the cause. On their corporate website they have a full section devoted to what they have done and what they plan to do to make a difference as without a sturdy supply chain, they do not have a product. “We’re part of the global movement to ensure coffee is grown and traded in ways that support communities and their land” (McDonald’s, 2019). We believe McCafe has shown to be ethical in their advertising, as well as in their positive actions towards ethical issues in the coffee industry. 


Interesting article in regards to this advertisement:





References 


Ankarcrona, A. (2008, December 12). Coffee war brews between McDonald’s, Starbucks. Retrieved October 9, 2019 from http://edition.cnn.com/2008/US/12/12/coffee.costs/


RMHC Canada. (2019). About Us. Retrieved October 9, 2019 from 


McDonald’s. (2019). Coffee: Why it Matters. Retrieved October 9, 2019 from

Good, K. (2011). Four Bucks is Dumb. Retrieved Oct. 9, 2019 from http://www.kategood.com/2011/03/four-bucks-is-dumb/

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