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Dunkin’ Donuts Takes Aim at Starbucks With Its New Coffee Strategy

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Get them while you still can.

Dunkin' Donuts' war on Starbucks has gone full-scale Daenerys Targaryen now that it's exposed signs of weakness. The new plan of attack apparently includes three components: The first is a new mobile-ordering platform that's very similar to the one Starbucks launched last year. Users can prepay for coffee and doughnuts and then skip the line at the store. It's supposed to roll out mid-May at all New York City locations exclusively to members of DD Perks, the Starbucks-esque loyalty program Dunkin' just launched with a video of gold stars (i.e., Starbucks's rewards currency) being blown up into the air:

The next part of the plan is curbside delivery, for customers who aren't content to merely skip the line and would rather a store employee ferry doughnuts and iced lattes right outside.

Lastly, Dunkin' plans to try and lure away Starbucks's latte drinkers, a key customer segment. CEO Nigel Travis tells the AP that espresso drinks constitute a "fairly small" portion of sales at the moment, but warns they're "starting to move the needle." They introduced a macchiato last year and redesigned menus so that fancier-seeming drinks like Coolattas and Dunkaccinos are more conspicuous.

It all seems to be working to convince America that Dunkin' remains a viable Starbucks alternative. In fact, drinks now make up about 60 percent of the massive chain's overall sales.

[Dunkin' Donuts, AP, Quartz]

Read more posts by Clint Rainey

Filed Under: the chain gang, coffee wars, dunkin' donuts, rewards programs, starbucks


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