LAS VEGAS The beverages currently being tested by McDonald's, including sweet teas, specialty coffees and bottled soft drinks, should be a boost to profits, Don Thompson, president of McDonald's USA, said Wednesday at the JP Morgan Gaming, Lodging and Restaurants Conference.
Thompson also said McDonald's expects to take some business away from the coffee specialists.
"You can't get much better profit than adding water to beans; it's a great margin business," he commented.
In addition to ongoing specialty coffee tests, which were recently expanded to all of Michigan, McDonald's is testing sweetened iced tea in some 4,000 domestic units.
Thompson said he believes that once the system gets used to serving specialty coffees via the drive-thru, speed of service will not be an issue.
Thompson said he expects that a probable rollout of a Southern-style chicken biscuit, now in test, will succeed beyond the South. A bigger breakfast burrito also is being tested, he added.