McDonald's branches out into coffee in US

Fast food giant McDonald's is opening a line of coffee outlets across the US in a bid to cash in on the country's burgeoning $18bn (£12.61bn) coffee shop industry.

McCafe branches will debut tomorrow in Chicago, following trials in overseas markets where it operates 300 cafes. The first McCafe opened in Australia in 1993.

McCafe aims to undercut Starbucks and will threaten the US coffee bar chain, which has 3,300 outlets compared with McDonald's 28,000 shops.

The burger chain recently bought into the coffee shop market in the UK when it took a 33% stake in Pret A Manger, the UK sandwich chain.



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