McDonald’s to start offering specialty coffee counters at 14,000 US locations as a challenge to Starbucks. McCafe’s coffee drinks will also cost less than the competition, by at least 60 cents.

This is a great move by McDonald’s and could seriously take a big chunk of Starbucks’ customers, especially the ones who are also McDonald’s customers. McCafe’s could also draw price conscious customers, who are affected by a declining US economy. But, most Starbucks customers might not be the kind who would want to be seen coming out of a McDonald’s, so the hit to Starbucks might not be that hard either.

Personally, I no longer eat at McDonald’s nor drink coffee at Starbucks, but if I still did, being frugal I will probably switch to McCafe.