Visit my new Technology News website, TECHPopuli.

February 10, 2004

Still an interesting problem

In comments, RickF has pirated, err, I mean, pasted an article from the Wall Street Journal about how Dunkin' Donuts and Starbucks are increasingly considering each other competitors, as opposed to targeting different strata of the marketplace.

The article talks about target market and the nature of their products (regular coffee vs esspresso drinks), but doesn't mention the other attribute that I think differentiates them: The in-store experience.


Now, both companies are seeking to stir things up. Starbucks increasingly is looking for growth by opening stores in blue-collar communities where Dunkin' Donuts would typically dominate. Last month, when the Seattle coffee chain reported fiscal first-quarter earnings, executives gave much of the credit to its 10% jump in sales at stores open more than a year to this broadening demographic. Its coffee, explains Howard Schultz, Starbucks chairman and founder, is "an affordable luxury."

At the same time, Dunkin' Donuts, a unit of United Kingdom spirits group Allied Domecq PLC, wants to lure Starbucks's well-heeled customers with a new line of Italian brews that it claims it can deliver faster, cheaper and simpler.

Posted by jghiii at February 10, 2004 11:43 AM
Posted by: MGA on February 10, 2004 12:49 PM

All this talk about coffee is making my hands shake...

So why aren't we noticing the Krispy Kremes store at 35 Revere Beach Parkway in Medford?

Donuts to die for... but maybe you're avoiding the subject because you're such a fast typist? ;-)

Posted by: dah on February 10, 2004 01:24 PM

Thing must be pretty slow down in Melrose, all there seems to be to talk about for the past two days is coffee, and if thats not bad enough, Jack is quoting material from his own web site, guess nothing new is happening on Mars these days....

Posted by: Jack Hodgson on February 10, 2004 01:31 PM

Nope, just busy getting the new weblog started.

Post a comment