Wednesday, February 4, 2009

Coffee Wars


There are two Starbucks and one Dunkin’ Donuts within one block of where I work. I don't know why there is a need for two Starbucks but, there they are. Both Starbucks are free-standing establishments with nice tables, comfortable couches, an upstairs, wifi-compatible, and hip music of all genres playing. One Starbucks even has two flat screen television monitors playing ESPN and CNN respectively.

If I ever get a laptop, Starbucks would be a great place for me to blog from on the road. There is only one problem... I don't like Starbucks coffee. It tastes like wet grass to me. Now, before I go any further, let me just say, to each his own. This is just my opinion and not the gospel truth by any means. If you like Starbucks coffee, that's cool... but, I don't.

I believe that I have stated either on this blog or my other one that my coffee of choice is Dunkin’ Donuts. I said once that Krispy Kreme donuts and Dunkin’ Donuts coffee is my ideal combination for a continental breakfast. Oh... and you can throw in some orange juice to balance it out. So, I was surfing the net yesterday (primarily the money section) and I came upon this tidbit...

Dunkin’ Donuts War On Starbucks
With the latte giant reeling from overexpansion and a softening economy, the doughnut maker took aim at its upscale rival. Now, McDonald's has joined the coffee fray as well. Can Starbucks pull through?

In late 2007, Dunkin’ Donuts made a surprising announcement: In a national taste test in 10 major U.S. cities, the chain had put its most popular brew up against Starbucks and clobbered the coffee conglomerate 58% to 42%. The test was held in two cities where Dunkin’ Donuts had a distinct disadvantage: Los Angeles, where the company doesn't have a single store, and Starbucks' hometown of Seattle. "We wanted to show that nationwide, people prefer Dunkin’ Donuts to the perceived leader," says Frances Allen, the company's brand-marketing officer.

Armed with the test results, Dunkin’ Donuts immediately launched a national multimedia advertising campaign that essentially declared war on Starbucks. The timing was perfect: The latte giant was overextended, battered, and vulnerable. Its stock had slid from the mid-$30s to the mid-$20s over the previous year (it was below $10 this week) and its "on-every-corner" strategy had left it overextended with too many unprofitable locations, just when the global economy was about to fall off a cliff.

Meanwhile, Starbucks is facing an attack on another front: McDonald's had joined the coffee fray as well, positioning itself as an alternative provider of premium coffee. The fast food giant plans to outfit most of its 14,000+ U.S. stores with a McCafé, a coffee bar that will sell espresso-based drinks such as cappuccinos and lattes.

I could gloat right now but, it's just coffee... I don't take it personally. I should mention that the lone Dunkin’ Donuts near my workplace is so small, that after you place your order, you don't even have enough room to count your change... yet, this establishment has customers out the door and down the street nearly every morning. Apparently, I'm not the only one who feels the way I do.

28 comments:

Kofi Bofah said...

Both Dunkin Donuts and McDonald's are killing SBUX.

Angel said...

Oh I'm so lucky, I don’t drink coffee Id be spoilt for choice, we don’t have dunkin dounoughts over here but the name sounds yummy I wish we did.

Arlene said...

Well horray! I can't believe I'm among the first commenters on this blog. Keith, I'm only online so early because today's a snow day and I get the wonderful opportunity to keep Miles while his mommy and daddy are off to work. When scholls are closed, I'm off but Miles's parents aren't. Hence, I'm out of the house, driving on snow and ice when I could be snuggled into my warm bed. Thank God that time with Miles is the pay. Now, on to the subject at hand. I love coffee. My favorite is Columbian followed closely bythe delicious beans from Kenya. Perfectly roasted and prepared as a hot drink, thess nuggets are the base for some of the best sugar and real cream I've ever eaten. I don't like to start the day without a fresh brewed cup. But I don't buy it "in the street." I'm in a coffee club and have my favorites delivered so I can make my own. I start the day with oatmeal, not that instant pour the hot water over it dust. And enjoy brewed coffee. It's worth the time in the morning to start the day. As a teacher, I don't know what the students have in store for me. Eventhough my students are adults, there are always surprises. I need strength to deal. The coffee iis my perceived edge. Great blog Keith!! I'm offf to Ryan's kitchen to make myself a cup. Love you.

Thoughts of a Southern gal said...

I don't drink coffee. Just give me a cup of cocoa.

Qucifer said...

blech! I hate coffee(or tea really, I'm not a warm drinks person at all), tends to turn my stomach... hilariously enough I make an OUTSTANDING Cuban Coffee or so I've been told... I don't even taste it but Is been praised a lot

Torrance Stephens - All-Mi-T said...

i make my own coffe each morning

Beautifully.Conjured.Up said...

I'm not a coffee drinker. The only time I drink coffee is when I have to work late or study for finals to keep me up. However, I love coffee ice cream :)

crys said...

yah- i like a little coffee with my sugar and cream in the mornings!

hmmm - i wonder if we have dunkin donuts, for some reason i don't think so. but nothing beats the white chocolate peppermint mocha from starbucks (especially on a cold day) - man!

hey keith *waving*

Blu Jewel said...

I think S.bux is overpriced black pee. I love me some Dunkin Donuts coffee, but I'm not feeling paying nearly $2 for a medium coffee. I look for coupons all the time and scored a 99c one for a medium cup. I don't go to McDs, but I did come across a coupon for a free any sized coffee of which I'll make good use of. With you being in PA, I know you're familiar with WaWa and they've got a deal where you can get a free coffee/tea/hot chocolate/cappucino any sized with a breakfast sandwich. Now that's a great deal. I've taken advantage of it a couple times while taking lil lady to school. She gets the egg white, with turkey sausage on a bagel sandwich for $2.49 and I score a 24oz free hot drink of my choice; can't beat that.

love to live; live to love!

James Perkins said...

From Cheesesteaks to Hoagies to Coffee, you can make almost any topic interesting. Sign of a good
writer.

Simon Bastion said...

I'm a Dunkin Donuts man myself!

Tate2 said...

I don't drink coffee from any of those places you mentioned. I go to
"Milkboy"

Jazzy said...

Personally, I buy Folgers and make my coffee at home!

Grover Tha Playboy said...

I drink coffee at Delancy's and
different places, but none of the places you mentioned.

Swaggie said...

I occassionally drink some of the foreign brews at Starbucks, they're not so bad.

Halo said...

I used to work at a Starbucks..Now I can't stand the smell of anybody's coffee period.

Lisa said...

I love Starbucks coffee myself...
Dunkin Donuts too, but I hate McDonald's coffee for some reason.

Sunflower said...

I'm a Tea Drinker myself.

Vanessa said...

I'm not one for coffee myself...Every once and awhile..I mostly drink herbal teas.

Toni said...

Hey Keith, I love coffee, I don't discriminate I drink em all.

Angie B. said...

Cool Post...I knew someone was gonna knock Starbucks off their perch.

Captain Jack said...

I used to work at a Starbucks...but I too prefer Dunkin
Donuts coffee.

Anonymous said...

What is this, free advertising for
Dunkin Donuts?

Political Sean said...

Hey Keith, This is just another example of how the market fluctuates...At the beginning of this decade..Starbucks was the king of coffee.

Darius T. Williams said...

You do know that Starbucks is going down, right?

Keith said...

@Darrius- Yeah ,that's what I hear!

12kyle said...

i had quit drinking coffee for a month. i had a relapse yesterday. lol. i gotta have 1 cup a day.

CurvyGurl ♥ said...

I hear that DD's coffee is really good. Poor Charbucks :-(




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