Gone East

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.

WSJ:

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.