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While both companies maintain similar menus and overall strategies, there are key differences in their business models related to scale, store ownership and branding.
Despite being founded 20 years after Dunkin' Donuts, Starbucks grew aggressively and is a substantially larger company. Starbucks has a larger footprint, with some 28, locations worldwide, compared to Dunkin' Brands' more than 20, points of distribution across the globe.
Starbucks plans to open another 3, stores in the U. Dunkin' Brands has a substantial international presence, though many of its international locations are Baskin-Robbins ice cream stores rather than Dunkin' Donuts stores. While only 3, Dunkin' Donuts stores exist outside the U. Franchising Nearly all of Dunkin' Brands' locations are franchises.
Dunkin' Donuts' higher exposure to franchise and rental income leads to a fundamentally different business than Starbucks' largely owner-operator model.
This has major implications for revenue streams, cost structure and capital spending. Company-operated stores have different operational and capital expense structures from franchised locations. Because COGS is so much more prominent in Starbucks' expense structure, its profits are more severely impacted by changes in coffee bean prices.
Starbucks also has a higher capital expense burden than Dunkin' Donuts, which is not obligated to purchase kitchen equipment for franchise locations. Focus and Branding Dunkin' Donuts markets itself primarily as a coffee seller that also offers donuts and food, a fact made apparent by a coffee cup prominently featured on the company's logo and executive management's explicit assertion that Dunkin' Donuts is a beverage company.
Despite building an identity as a coffee seller, food is still an important element of Dunkin' Donuts' offering. In recent years, Dunkin' Donuts has focused increasingly on nontraditional food options with the hopes of attracting customers outside of breakfast hours.
The introduction of steak to its menu in was a step toward incorporating heartier food items alongside a growing number of sandwich options. Dunkin' Donuts' interiors are designed differently from Starbucks stores, with the former often resembling fast food stores in furnishings and decor.
Starbucks brands itself primarily as a beverage provider that offers a more typical coffee house dining experience. Starbucks locations are designed with the comfort of their customers in mind.
Free Internet access and inviting decor offer a more enticing option for those looking for a place to read, relax or chat with friends. This also makes going to Starbucks a potential social activity, turning the stores into a destination rather than a simple distribution location. This appeals to customers seeking a premium experience.
Typically, such customers have higher disposable incomes and are more willing to pay extra for higher quality materials. In economic downturnspeople with lower disposable incomes are more likely to alter their consumption habits than people with larger financial cushions.
While Starbucks is undeniably impacted by the macroeconomic environment, it is firmly established with a more resilient and less price-sensitive customer base, which helps to dampen the blows brought on by economic cycles.The decision problem chosen for the Dunkin Donuts location on the St.
John’s University Queens campus is that the franchise is concerned that many students might be leaving campus to visit a different Dunkin Donuts location rather than staying on-campus.
Recommendation to Dunkin Donuts To focus on its new target market of college students who crave caffeine but also want convenience, low prices, quality, and taste, Dunkin’ Donuts will need a new marketing strategy.
Dunkin' Donuts is the only fast food chain to improve customer satisfaction in , climbing 4% to At the beginning of , Dunkin' Donuts rolled out a beverage rewards program and also tied it to the company's . Dunkin’ Brands Cards are good only toward purchase of Dunkin’ Donuts or Baskin-Robbins products at participating US Dunkin Donuts or Baskin-Robbins locations.
You may use them in-store or, to the extent applicable, through certain portions of the DD/BR Online Services. No .
There are different stations that you may be at, these stations are made to help you succeed, they make the store run smoothly.
You have to be able to multitask. It is not a terrible job but there are definitely some flaws/5(58). Providing a total positive customer experience is critical." This approach is at the heart of Dunkin' Brands, currently the largest coffee and baked goods chain in the world with more than 13, Dunkin' Donuts and Baskin-Robbins franchised restaurants in 50 countries.