- McDonald’s launched a Dulce de Leche Frappé to tap into Latino coffee culture
- This helps them target their largest consumer demographic & avoid espresso machine troubles
- With Latino spending power set to hit $2.6 trillion by 2025, McDonald’s blends cultural relevance with practicality
MCDONALD’S has launched a limited-time Dulce de Leche Frappé, signalling a calculated nod to the Latino community, their fastest-growing demographic in the US and a key driver of specialty coffee consumption.
The marketing campaign, featuring rising Mexican star Iñaki Godoy, includes pop-up carts in Southern California and Miami – two areas with large Latino populations – where free samples of the frappé are offered.
Authentic gesture of representation or tokenism? McDonald’s is not the first brand to walk this path – it’s a tried and tested method, often successful but not necessarily perceived as authentic or as a best practice.
“I’m old enough to remember the Taco Bell Chihuahua who said ‘yo quiero taco bell!’” says Sandra Loofbourow, Coffee Consultant and Educator at Loupe Coffee Consulting. “That was a funny cultural moment that both performed incredibly well as a marketing tactic and was absolutely tokenisation.”
The Dulce de Leche Frappé itself is a confectionery creation: a caramel base blended with dulce de leche syrup, topped with whipped cream and caramel pieces. Called by different names depending on the region – cajeta, manjar, manjar blanco, arequipe, fanguito, doce de leite, and leche quemada – one thing remains undeniable: the universal love for this iconic flavour.
Alongside its release, the campaign celebrates how Latinos refer to the flavour “dulce de leche,” rather than anglicising or simplifying it to a more generic “caramel.”
With more than 63.7 million Hispanics living in the US, this community has substantial buying power and plays a pivotal role in shaping consumer trends across industries – and McDonald’s and other brands know it.
A 2023 survey reveals that 37% of Hispanic Americans dine at fast-food chains monthly, compared to 32% of non-Hispanic Americans, showing a notable preference for McDonald’s – 52% rank it as their top choice, six percentage points higher than their non-Hispanic counterparts.
But while the frappé campaign has garnered attention, it also coincides with McDonald’s ongoing struggles to maintain its espresso machines across the US franchise network.
Melitta reported an issue with the equipment, prompting McDonald’s to temporarily take them out of service while the problem is addressed. As a result, espresso-based drinks are currently unavailable in several cities, including Atlanta, Dallas, Pittsburgh, New York and Tampa, Florida.
Known for persistent issues with its ice cream machines, McDonald’s espresso capabilities have similarly lagged, leaving franchisees frustrated.
Whether intentional or not, the Dulce de Leche Frappé – pre-blended and not reliant on functioning espresso equipment – fills a gap in the coffee lineup and may have emerged as a workaround for the company’s operational hurdles.
“They’ve established themselves as a serious competitor to Starbucks, focusing on the mainstream market by selling everything but the coffee – sugars, flavourings, milk – all while capitalising on the growing popularity of specialty drinks,” says Martin Mayorga, Founder and CEO of Mayorga Coffee. “It’s a savvy financial strategy that’s clearly paying off.”
Tapping into a coffee-drinking powerhouse
The timing of McDonald’s Latino-focused frappé campaign is far from coincidental.
According to the National Coffee Association’s 2024 National Coffee Data Trend report, Latinos represent the largest demographic for specialty coffee consumption in the US. Nearly 69% of Hispanic-American adult coffee drinkers enjoy specialty coffee daily, compared to 55, 53, and 57% for Caucasian-Americans, African-Americans, and Asian-Americans respectively.
The 2023 survey also highlights that nearly 40% of Hispanic Americans express at least “some interest” in purchasing coffee from fast-food restaurants, a significant twelve percentage points higher than non-Hispanic Americans.
This trend reflects a deep cultural appreciation for coffee within the Latino community, where “cafecito” traditions run strong and flavours like dulce de leche evoke familiarity and nostalgia.
Multinational brands like McDonald’s are increasingly recognising the spending power of Latinos, projected to surpass $2.6 trillion in the US by 2025. Forbes’ “Six Ways To Market To Hispanic Consumers” and InBeat Agency’s “How To Market To The Hispanic Consumer Audience” are good examples of this.
Historically, marketing efforts targeting this demographic in the coffee space have been sporadic and stereotypical – think ads heavy on maracas and sombreros, rather than authenticity. Despite the fact that they are the fastest-growing ethnic segment in the US, marketers are yet to address this market properly.
McDonald’s has a long history of investing in the Latino community through culturally resonant initiatives that seek to celebrate and uplift Hispanic heritage.
Campaigns like “Dorado” and “Ritmo y Color,” have showcased Latino artistry and culture. The “HACER Más” campaign underscored McDonald’s efforts towards education, helping Hispanic youth pursue higher education through scholarships. Meanwhile, the “Me Encanta” campaign tapped into the cultural pride and deep familial connections central to the Latino experience, to create a sense of belonging.
McDonald’s latest campaign leans further into cultural nuance. The inclusion of Iñaki Godoy, a Mexican actor best known for his role in Netflix’s One Piece, underscores this shift.
The campaign’s emphasis on using the term “dulce de leche” further illustrates an understanding of linguistic pride, appealing to a demographic that often sees its culture homogenised in mainstream marketing.
These efforts could be seen as authentic, if not for the fact that only 8% of the company’s board of directors are Hispanic – a representation number that increases the further away from decision-making it gets. In this light, the campaigns and efforts seem less authentic, and more shamelessly opportunistic.
“An enormous business like McDonald’s must understand and cater to its primary customer base, and applying morality to its marketing tactics doesn’t make sense under the capitalist system,” says Sandra.
“They will always go after their biggest market demographic, but never value that demographic more than its current market share. It’s inherently opportunistic, because it’s strategic marketing!”
This is not McDonald’s first foray into the Latino market. The fast-food giant has experimented with culturally inspired offerings, from jalapeño-laden burgers to regional breakfasts.
However, the Dulce de Leche Frappé reflects a more strategic alignment with specialty coffee trends, catering to younger, urban Latinos who see coffee as more than a commodity – it’s a lifestyle.
“For a campaign to feel truly authentic, it needs to be led by a Latino company, not simply borrow Latino culture,” says Martin. “Take brands like Cafe Bustelo, which was authentically Latino before being acquired by Smucker in 2011.”
“When major corporations target the Latino demographic, using cultural colours and language, it raises questions. Will it resonate? Sure, some consumers might connect with it as part of their heritage. But as a Latino brand focused on authenticity, I see it as tokenism and opportunism.”
A recipe for wider change?
McDonald’s campaign comes at a pivotal time for the coffee industry, where the line between specialty and commercial coffee continues to blur.
For decades, independent specialty coffee shops have dominated the conversation around authentic coffee experiences, often catering to urban, affluent audiences with both authenticity and high quality.
“Bustelo, McDonald’s, and other mass market brands tapping into the Latino consumer segment carry a kind of authenticity rooted in nostalgia – it’s the kind of coffee that might not have tasted great in your childhood but still holds a place in your heart,” says Martin.
“The sentiment of ‘this reminds me of my grandma’ is enough to keep it relevant in the market. It’s not about quality; it’s about the emotional connection. While we at Mayorga represent the new age of specialty Latino coffee, they embody the nostalgic legacy alone.”
As chains like Starbucks and Dunkin’ democratise access to more premium coffee, McDonald’s is taking another angle, less focused on quality and hyper-focused on a cultural strategy.
One key takeaway from McDonald’s Dulce de Leche Frappé launch is the growing emphasis on tailored cultural marketing in the coffee sector. Starbucks, for instance, has long included offerings like Mexican Café de Olla-inspired drinks in specific regions. Unlike broad-brush campaigns, McDonald’s leverages cultural specificity to engage the Latino community – a strategy likely to be emulated by competitors.
“The real issue lies in oversimplifying the diversity of the Latino community,” says Martin. “A Dominican experience is vastly different from a Mexican one.”
“Being an immigrant brings its own complexities too – some assimilate to feel Americanised, while others hold tightly to their heritage to affirm their identity. Yet campaigns often lump us into one monolithic group, ignoring these nuances. That lack of understanding is more problematic than the campaign itself. It reflects a deeper failure to respect and engage with the full spectrum of Latino experiences.”
Moreover, McDonald’s campaign highlights the broader trend of “flavour regionalisation” in coffee – testing their new product in select locations in Southern California and Miami, where the number of Latino consumers is high. Chains are increasingly using limited-edition drinks to test niche flavours before expanding them nationwide.
While the Dulce de Leche Frappé is rooted in Latino culture, it has the potential to reach a wider audience through its universal appeal to caramel and dessert lovers. Coffee chains are moving away from a one-size-fits-all approach to one that embraces diversity in taste and tradition.
“If we look at McDonald’s success in international markets, we see that it is often achieved by changing its menu in small but critical ways to reflect the culture of the regional market – like the addition of churros or empanadas, or the Chicken Maharaja Mac,” says Sandra.
“Through this perspective, McDonald’s can act as a lens through which we can interpret an existing culture, and the fact that McDonald’s is incorporating Latino foods in its US menu would indicate that the US culture includes Latino culture – which is absolutely true.”
Finally, McDonald’s choice of a frappé rather than an espresso-based drink underscores operational challenges within the fast-food industry. Espresso machines, which require significant maintenance and barista training, have often been a weak point for fast-food giants entering the coffee space.
Frappés are easier to prepare and more profitable, allowing McDonald’s to sidestep its equipment woes while delivering on consumer demand for indulgent coffee beverages.
Still, this workaround raises questions about the long-term viability of McDonald’s coffee programme. If espresso-based drinks remain off limits, the brand risks ceding ground to competitors like Dunkin’, which continues to invest in its espresso capabilities.
For now, the Dulce de Leche Frappé serves as both a marketing success and a temporary patch for a deeper operational flaw. As the coffee industry continues to evolve, McDonald’s new move may serve as a blueprint – or a cautionary tale – for how to blend cultural relevance with business strategy.
Coffee Intelligence
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