Findings:
Whataburger, a 24-hour US fast-food chain, has introduced an upgraded hot and iced coffee menu.
The launch aims to attract younger consumers, particularly Gen Z, and fill the gap in coffee availability after midnight.
The new coffee range is positioned as a premium, value-focused offering made with 100% arabica beans sourced from Colombia, Honduras, and Nicaragua.
Whataburger's move follows McDonald's trial of a new café concept, CosMc's, focused on blended and iced coffee beverages.
Key takeaway:
Whataburger is strategically positioning itself as a "go-to coffee shop" in the US by targeting younger consumers with a revamped coffee menu and extended hours, capitalizing on the growing trend of cold coffee consumption.
Trend:
Cold coffee sales are booming in the US, driven by high demand among younger consumers. This trend is influencing the strategies of major fast-food chains like Whataburger and McDonald's, who are expanding their coffee offerings to cater to this growing market segment.
Conclusions:
Whataburger's entry into the branded coffee shop market demonstrates the increasing competition in the sector.
The focus on premium yet affordable coffee options reflects the changing preferences of consumers, especially younger generations.
The emphasis on late-night coffee availability highlights the untapped potential of the after-midnight coffee market.
Implications for brands:
Established coffee chains need to stay innovative and competitive to retain their customer base in the face of increasing competition from fast-food brands.
Fast-food brands should consider expanding their beverage offerings to include premium coffee options to attract a wider audience and increase sales.
Brands need to cater to the preferences of younger consumers by offering diverse cold coffee options and focusing on convenience and value.
The after-midnight coffee market presents an opportunity for brands to differentiate themselves and capture a niche audience.
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