OK, sure, Burger King’s coffee isn’t the best on the planet (that is actually Jamaican Blue Mountain and don’t let anyone tell you different). But then everything is a trade off between price and quality so $5 a month for a month of coffee isn’t that bad at all.
Sure, it’s not all the coffee you might want, it’s the one cup a day. But it’s still not a bad deal for us consumers. And it’s an absolute bargain for Burger King:[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]When it comes to places to get your morning/afternoon/midnight coffee, the options are plentiful. If you’re looking for something extravagant, and probably overpriced, you go to a specialty coffee shop. If you’re looking for something fast, relatively straightforward and very cheap you go to a fast food chain like… Burger King. The royal burger maker is about to make getting coffee a bit less expensive with its new pay-per-month coffee subscription.[/perfectpullquote]
OK:[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Burger King is brewing up a breakfast war with an app-based deal that lets folks score a cup of coffee for as little as 17 cents, the fast-food giant said Friday.[/perfectpullquote]
If we look purely at the cost of making that coffee to sell, without any overheads, Burger King will be making a gross margin and even a profit at that price. Note that’s before all those fixed costs like the store, rent and so on. So it’s an addition to revenue. But that’s not all it is:[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Customers can buy the coffee subscription via the Burger King app. If you purchase the subscription deal, you can use the app to get a small cup of brewed coffee every day.[/perfectpullquote]
OK again, but to get your coffee you’ve got to go into a Burger King. What is the main aim of all the advertising that a fast food chain does? To get you to walk into the store. Footfall it’s called and it’s the Holy Grail. For it’s pretty obvious that once you’re in a fast food joint it’s going to be a heck of a lot easier to sell you something. A donut, an ice cream, a small burger for breakfast. Something.
So, look at this from the point of view of Burger King. The cost of the coffee, call that a wash either way. But they’ve just managed to get you to pay them to make sure that you turn up at a Burger King every day. Exactly the thing their entire ad budget is encouraging you to do anyway.
Marvellous marketing, a truly inspired idea.