McDonald's to test McCafe coffee bars in U.S.

NEW YORK- Instead of ordering fries along with your next Big Mac, how about a cappuccino? McDonald's says it will test market a string of coffee bars, called McCafes, in the United States in an attempt to cut into the market share of retail coffee leaders Starbucks and Dunkin' Donuts, owned by Allied Domecq. McDonald's said the new U.S. outlets would be located inside existing restaurants, and industry watchers expect high-traffic locations in more affluent communities to be targeted. The idea of the European-style McCafe with espresso-based drinks, chai tea, sandwiches and fancy pastries dates back to 1993, when the first one was opened in Australia. Today there are about 300 McCafes in 17 countries. "We do plan to open 10 McCafes in the United States this year, but none in New York. They will opening in late fall," said Lisa Howard, spokeswoman for Oak Brook, Ill.-based McDonald's.