McDonald’s is trying out coffee shops in Japan that will challenge Starbucks by brewing up bargain lattes, the fast food chain said Thursday.
The Japan unit of U.S.-based McDonald’s will launch 15 pilot “McCafe” stores in the Tokyo area on Aug. 29, according to a company press release.
The stores, the burger chain’s first foray into the coffee shop business, will offer low-priced beverages to lure families, the release says. McDonald’s says it will consider opening McCafes across Japan in the next fiscal year.
The cafe business in Japan has been shrinking and stood at 1.052 trillion yen ($8.61 billion) in 2006, down 5% from the previous year.
But sales at specialty coffee shops such as Starbucks have soared.
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