The Breakfast Wars
EmailDavid Wright Reports:
The breakfast wars are heating up and hyper-caffeinated these days, as New England-based Dunkin’ Donuts gets ready to battle Seattle.
“Dunkin’ beats Starbucks,” DD president Will Kussell boasted to “Nightline.” Dunkin’ is now the consumer’s number one choice both for coffee sold over the counter and coffee beans packaged in those little foil bags.
Dunkin’ has just launched a new $100 million ad campaign aimed at luring more Starbucks customers over to them.
The economic slowdown has played to Dunkin’s strengths. Fast food typically does well in recession, and at Dunkin’, the emphasis is on fast: in and out in under 5 minutes, and usually under $5.
Dunkin’ customers pride themselves on being low maintenance, regular Joes. They tend to be the type of people who’d prefer not to speak Italian when ordering a cup of coffee. Small, medium and large are just fine, thank you.
At Dunkin’, a cup of coffee will set you back $1.39 – for a small. Starbucks is considerably more expensive.
Business analysts say price is one reason why the recession has hit Starbucks so hard.
“In this environment, certainly it’s tough to get people to spring for the $4 latte,” said Timothy Calkins, a clinical professor of marketing at the Kellogg School of Business at Northwestern University.
The Seattle coffee giant has been forced to close hundreds of stores and lay off thousands of workers. The stock price is about equal now to a venti mocha latte.
Dunkin’, meanwhile, is growing. Officials at the privately-held company say sales have grown consistently 5 percent per year. Dunkin’ opened at least 800 stores in 2008.
“This is a time period right now where people are looking for comfort,” said Dunkin’ executive chef Stan Frankenthaler. “Familiar foods, nostalgic foods, comfortable foods, flavors that bring back good memories.”
Frankenthaler took “Nightline” behind the scenes at Dunkin’s top secret test kitchen. Among the chef’s latest creations are a breakfast sandwich that’s sort of like an Egg McMuffin, but made with waffles and with the maple syrup baked right in. According to Frankethaler, the New Yorker magazine called it “lowbrow brilliant,” a review he’s proud of.
“I love that," he said. "That’s perfect. That’s exactly what we want to be.”
In recent years, Dunkin’ has tended to emphasize the coffee more than the doughnuts. The company already underwent significant belt tightening, as America tightened its belt during the 90s’ obsession with low carbs and zero trans fats.
Now, though, the doughnut is back.
“Nightline” viewers are getting a sneak peek at a new doughnut due to hit stores tomorrow. All we can tell you here is that the pink icing is so thick you can just picture how it’ll cling to your arteries.
Dunkin’s advice to the diet conscious?
"Well, we have Munchkins," Kussell said.
Company officials believe that, during the recession, people are more eager to count their pennies than their pounds.
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I’m guessing Obama is a Starbucks fan…
http://www.political-buzz.com/
Posted by: matt | March 17, 2009, 8:17 pm 8:17 pm
Dunkin Donuts can change their ad campaign a million times, and I still won’t drink their coffee. Smells great-but I hate the taste. I tried it-I worked for them. But I never liked coffee until I tried Starbucks. I’m a fan of Starbucks for life!! You can keep your poor man’s coffee brew-even McDonalds is better than Dunkin Donuts!
Posted by: Dee | March 17, 2009, 11:46 pm 11:46 pm
This is highly offensive to all coffee drinkers. To call people who drink Starbucks snobs if extremely offense. Starbucks is quality coffee, and a quality experience with friendly employeees. Dunkin Donuts, however, can not even speak english! I know from experience! And their food tastes like FAST FOOD- they are not in the same market as Starbucks. Dunkin Donuts is the same as McDonalds- FAST FOOD!! While Starbucks is quality, like Caribou or Seattle’s Best. This is an insulting, one-sided article, that is offensive to all coffee drinkers, and insults the average person by saying your tastes and experience don’t matter, just that it’s cheap. But you can get a better cup of coffee or latte and a healthy bagel or sandwich for around $5 too. Spend the extra few pennies and employee friendly workers who can SPEAK ENGLISH!
Posted by: caitlin sheridan | March 17, 2009, 11:50 pm 11:50 pm
Interesting story on Dunkin Donughts vs Starbucks. Me, I eat quality food and drink quality coffee. This means I don’t go to Dunkin Donughts because I like coffee that tastes good and gives me that wonderful coffee flavor and coffee “kick” and donughts are not in my diet. Quality coffee – that’s not available at Dunkin Donuts. I LOVE Starbucks coffee, but I also watch my budget. That means I get a great cup of coffee for about $1.75 at Starbucks and it’s great! I don’t bother with thier fancy coffee drinks, they’re loaded with empty calories and a high price tag. I think the regular plain old cup-o-joe at Starbucks is a great value!
Posted by: Michael | March 17, 2009, 11:55 pm 11:55 pm
I was upset watching this on tv because as a coffee drinker, i am willing to pay the extra dollar for a good cup of joe. I don’t go out of my way every morning to not understand and not have a good experience getting my latte and breakfast sandwich because i could get the same thing at any dunkin. its crappy food filled with lard and coffe thats half water, some coffee, and the rest cream and sugar thats thrown in a cup and shoved at me without a smile.the god damn ppl dont even speak english and don’t charge me right have the time. instead of wasting money everyday on crappy stuff, i’ld rather spend an extra dollar and get exactly what i want the first time and enjoy the experience and know the stuff is good quality. i think starbucks is the core of america and dunkin is so threatened by them they have to do petty attacks like “dunkin beat starbubks”, which was a skewed survey cause they did sbux’s boldest coffee against the average coffee ppl drink. so f dinkin and f nightline for being so biased and obviously in bed with dunkin.
Posted by: Austin Sahr | March 18, 2009, 12:00 am 12:00 am
I was upset watching this on tv because as a coffee drinker, i am willing to pay the extra dollar for a good cup of joe. I don’t go out of my way every morning to not understand and not have a good experience getting my latte and breakfast sandwich because i could get the same thing at any dunkin. its crappy food filled with lard and coffe thats half water, some coffee, and the rest cream and sugar thats thrown in a cup and shoved at me without a smile.the god damn ppl dont even speak english and don’t charge me right have the time. instead of wasting money everyday on crappy stuff, i’ld rather spend an extra dollar and get exactly what i want the first time and enjoy the experience and know the stuff is good quality. i think starbucks is the core of america and dunkin is so threatened by them they have to do petty attacks like “dunkin beat starbubks”, which was a skewed survey cause they did sbux’s boldest coffee against the average coffee ppl drink. so f dinkin and f nightline for being so biased and obviously in bed with dunkin.
Posted by: Austin Sahr | March 18, 2009, 12:01 am 12:01 am
I was upset watching this on tv because as a coffee drinker, i am willing to pay the extra dollar for a good cup of joe. I don’t go out of my way every morning to not understand and not have a good experience getting my latte and breakfast sandwich because i could get the same thing at any dunkin. its crappy food filled with lard and coffe thats half water, some coffee, and the rest cream and sugar thats thrown in a cup and shoved at me without a smile.the god damn ppl dont even speak english and don’t charge me right have the time. instead of wasting money everyday on crappy stuff, i’ld rather spend an extra dollar and get exactly what i want the first time and enjoy the experience and know the stuff is good quality. i think starbucks is the core of america and dunkin is so threatened by them they have to do petty attacks like “dunkin beat starbubks”, which was a skewed survey cause they did sbux’s boldest coffee against the average coffee ppl drink. so f dinkin and f nightline for being so biased and obviously in bed with dunkin.
Posted by: Austin Sahr | March 18, 2009, 12:01 am 12:01 am
I have to say that news has gone to a new low. Starbucks is that greatest coffee and treats their empolyees very well. I also would pay the few extra bucks for actual smiles and speaking English is another plus. I am in shock that dunkin donuts has the balls to even consider themself in the same group with Starbucks when they can even get their stores in tune with speaking English, keeping the stores clean, not to mention serving quality coffee. And frankly who really knows how many calories are in the food Dunkin serves. If you ask me a fied donut is not going to be a low calorie breakfest. America spend your money wisely on Starbucks, agreeing with mostly everyone here, F*** Donkin Dounuts and F*** you Nightline!
Posted by: Charlette | March 18, 2009, 12:17 am 12:17 am
Hey Austin Sahr how many times are you going to post your comments. Nightime was only doing their job and you should not have been nasty. Dunkin coffee is smooth and not harsh as starbucks.
Posted by: Waldo | March 18, 2009, 4:41 am 4:41 am
First – what a great marketing trick for Dunkin’ Donuts. They have absolutely nothing in common with Starbucks other than they both sell coffee and breakfast items. One is a donut shop, the other is a coffee house. One is a quick stop shop and the other is a place where people meet and mingle, do work, read a book. I would say that Starbucks is a victim of the economy rather than Dunkin’ Donuts.
I don’t eat donuts, the oil or whatever they use in cooking them doesn’t agree with me. And if I want a quick cup of regular coffee, I can brew it myself at home. No need to spend even $1.50.
Very one-sided show – why did Nightline not ask Starbucks for their side of things? Why did they take everything the CEO at DD said as fact?
I still haven’t forgiven Dunkin’ Donuts for caving to a right-wing conservative blogger over the ridiculous charge that Rachael Ray was wearing a terrorist scarf in one of their ads…
Posted by: Janet | March 18, 2009, 10:15 am 10:15 am
The Dunkin Donuts Drive Thru Window manufactured by Ready Access looks and works GREAT!!!
Posted by: Phil | March 18, 2009, 2:06 pm 2:06 pm
First of all for all you haters if Dunkin Donuts came in first place and beat starbucks was for something and if you dont like it fine but respect other peoples way of taste if they really like it good but if you dont then too bad.
Posted by: maria | March 19, 2009, 11:04 am 11:04 am
I thought this article was great. But why so much emphasis on calories? Who goes to a fast food place and worries about calories? Don’t go there if you are looking fo diet food! Kinda silly. But anyway, I don’t need to spend more money for great coffee. Dunkin rocks!
Posted by: buzzbuzz | March 20, 2009, 11:34 am 11:34 am
i guess the person that wrote this has not been to starbucks for their house coffee. the price is comparable to all of the other places that sell coffee. i am not a regular starbucks customer so this is not out of loyalty. i always go large and they run around $1.80 for a large coffee.
Posted by: ira m trager | March 20, 2009, 6:02 pm 6:02 pm
I just like the taste of dunkin donuts coffee. I’ve had starbucks and its a little to bitter for me. Dunkin goes down smooth! And as for all this latte cappacino flavered or iced BS, what ever happened to a good cup of coffee and not all the foo foo stuff!
Posted by: Brian | March 20, 2009, 6:18 pm 6:18 pm
There is something in DD coffee and muffins that triggers my migraines. I don’t know what it is but after I eat or drink anything and I have one. And the couple of times I have had their coffee it tastes extremely bitter. Even when you put vanilla cream in it it makes no difference. Atleast I ask for Vanilla bit since most of the people that own and work their don’t speak very good English I have to assume they put it in. The coffee at BP cafe is better than DD and since I can’t afford Starbucks anymore I prefer to go to BP.
Posted by: Suz | March 20, 2009, 6:40 pm 6:40 pm
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Joannah
http://myscones.com
Posted by: Joannah | March 21, 2009, 10:00 am 10:00 am
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Joannah
http://myscones.com
Posted by: Joannah | March 23, 2009, 7:10 am 7:10 am
good post. we appreciate you. And the couple of times I have had their coffee it tastes extremely bitter. Even when you put vanilla cream in it it makes no difference.
Posted by: wholesale electronics | April 16, 2010, 11:44 pm 11:44 pm