The low-cost coffee offer will likely prove popular with many Canadians amid an ongoing cost-of-living crisis but could face resistance from franchisees already grappling with thin operating margins
A McDonald’s restaurant in British Columbia, Canada | Photo credit: Ansel Huang
McDonald’s Canada has unveiled a new C$1 ($0.73) ‘everyday’ 10oz coffee offer across its 1,400 restaurants in a bid to attract price-conscious consumers.
In a press release, the fast-food chain said the low-price offer applies to its McCafé Premium Roast Coffee and can be upgraded to medium, large and extra-large cup sizes for C$0.25 ($0.18), C$0.50 ($0.37) and C$0.75 ($0.55) respectively. The promotional price does not include tax, which makes the small ‘$1 everyday’ offer $1.05 ($0.77).
“We strive to be a brand for everyone and understand how important it is to provide affordable options to our guests everyday,” said Alyssa Buetikofer, Chief Marketing Officer, McDonald’s Canada.
Data released by Statistics Canada shows that prices at food and beverage outlets across seven Canadian provinces increased 5% year-on-year in January 2024. The government agency reported out-of-home food and beverage sales fell 2% in the same period as consumers tightened their belts.
McDonald’s Canada’s low-price pivot positions the fast-food chain as significantly cheaper than market leaders Tim Hortons and Starbucks and better value than convenience store chain Circle K.
Ontario-based Tim Hortons has previously launched C$0.99 ($0.73) coffee offers but currently charges C$1.83 ($1.34) for its 10oz filter Brewed Coffee, while Starbucks prices its 8oz filter blends from C$2.65 ($1.95). A small filter coffee from Circle K’s currently costs C$1.29 ($0.95) with medium, large and extra-large sizes rising to C$1.59 ($1.17), C$1.89 ($1.39) and C$2.10 ($1.54) respectively.
Whether $1 coffee will be sustainable strategy for McDonald’s in Canada remains to be seen.
The Wall Street Journal reported in June 2022 that many of McDonald’s franchisees in the US had stopped serving $1 coffee beverages first introduced in 2013 and raised their prices amid higher operating costs.
The C$1 coffee launch in Canada comes after the fast-food chain launched a $5 value menu across its US restaurants in June 2024. The National Owners Association – an independent advocacy group of US McDonald’s franchisees – welcomed more affordable options but has sought subsidies from McDonald’s to make discounting sustainable for operators in the long run.