Dunkin` donuts challenge Starbucks
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Cofee giant Starbucks now facing another challenger. After McDonal`s compete in coffee and coffee-related beverage with McCafe brand, now coffee shop Starbucks has to face Dunkin` Donuts. Yes, Dunkin` donuts joint coffee market.
Reuters wrote that “Dunkin’ Donuts called by some the “anti-Starbucks,” because of its core blue collar customer base. the East Coast coffee shop chain still plans to more than double its U.S. stores to 15,000 by 2020. So indeed, Pretty arrogant.
Will Kussell, president and chief brand officer of privately-held Dunkin’ Donuts Worldwide said that “Coffee has become a very competitive segment It requires us to be on top of our game.”
So main focus for Dunkin` Donuts is expansion, double it`s store. RBC Capital Markets analyst Larry Miller said Dunkin’ is taking more money out of the overall coffee market as it expands, but that the biggest shift in consumer coffee buying patterns is toward making coffee at home.
McDonald’s currently has about 14,000 U.S. outlets. Starbucks will retain about 11,000 domestic stores after plans to shutter 600 outlets to contend with flagging profits and store traffic.
Dunkin’ is adding stores in three western markets: Las Vegas, Phoenix and the Dallas/San Antonio/Austin/Houston area, which Kussell said will get more than 100 new units in total over about the next three years.
“They have a lot of appeal to the anti-Starbucks crowd. It’s not as chichi and it has a little more blue-collar appeal, which works to their advantage,” said restaurant consultant Bob Goldin of Chicago’s Technomic. Dunkin’ has been a Technomic client, but Goldin has not done work for the company.
Goldin said Dunkin’ made the right choice in expanding beyond breakfast, spiffing up units and pushing national advertising. Its biggest risk is making its menu too broad, he said. (Reuters)
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