Competing on coffee.

Ready-to-drink coffee competition seems to be hotter than ever, even though some consumers are pulling back because of the recession. One of our consumers wrote: "Starbucks is advertising everywhere but I haven 7 bothered figuring out what they are advertising?" McDonald's McCafe, Starbucks, 7/Eleven, Dunkin' Donuts, Wawa, and A+(Sunoco) are among the combatants. How fresh? (Mostly within 1/2 hour.) How many varieties? (Five to 15.) What is this month's price? (From 49 cents to $5.50.) How big is the big one? (24 ounces in paper, 64 ounces in thermos.) How much less are the refills? (About 20 percent.) How close is the competition? (From a few doors to a few blocks.) How good is the coffee? (Good question.) What happens if they're out? (Mostly, shopper is out of luck.) Why are stores being closed? (Sales are off, and new business models insist on selling gas as well as coffee.)

With McCafe stirring the pot, coffee drinkers are being cajoled, cosseted, and frustrated. McCaffee lattes and cappuccinos are being advertised but are not yet in all stores, and their prices are triple the fake cappuccino sold in convenience stores, where the big problem is not real vs. fake but keeping the dispensers in stock and functioning. When convenience store shoppers let grumpy employees know that "mocha is running water, " they are told that the flavor is out or that the machine will take a few minutes to fix. Some customers wait, others walk. At A+ stores at Sunoco gas stations, having to wait for a machine to be fixed or filled gets an apology and a freebie. "We know your time is important - we won 7 take your money when you have to wait." The coffee-drinker who told me about that said, "I used to be a Wawa girl, but once A+ refused to take my money because I had to wait for them to refill the machine, I switched. I really like them recognizing that my time is important."

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