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.