A report by global brand valuation consultancy Brand Finance reveals that McDonald’s has edged past Starbucks to claim the title of the world’s most valuable restaurant brand.
In 2025, the value of the McDonald’s brand witnessed a 7 – percent increase, reaching US$40.5 billion. This marks the first time since 2016 that McDonald’s has overtaken Starbucks. Conversely, Starbucks’ brand value in 2025 plummeted by 36 percent, amounting to $38.8 billion.
Brand Finance, in its report, attributes this decline in Starbucks’ brand value to setbacks in several crucial brand – strength metrics. Both in the United States and China, metrics such as “reputation” and “recommendation” have taken a hit. These deteriorations seemingly indicate a widening gap between Starbucks and customer expectations, leading to growing consumer dissatisfaction and, subsequently, declining sales.
On a different note, Luckin Coffee has been making significant strides. Its brand value ascended by 17 percent to $1.7 billion, propelling it two positions higher to the 19th rank. As a result, Luckin Coffee earned the distinction of being the fastest – growing brand in 2024.
Reports suggest that Luckin Coffee has now outpaced Starbucks in terms of market dominance in China. This achievement can be attributed to its product innovations and an assertive expansion strategy. In the third quarter of 2024 alone, Luckin Coffee opened 1,382 new stores.
The Brand Finance report comes at a time when Starbucks is implementing its “Back to Starbucks” restructuring plan. This plan has recently included measures like reducing the frequency of discount – based offers, streamlining its menu in the US, and cutting 1,100 corporate positions.
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