While Starbucks cuts back, Dunkin’ Donuts expands
So just a few weeks after Starbucks closed 600 stores in the US, but Dunkin’ Donuts sees an opportunity to expand.
Called by some the “anti-Starbucks” because of its more blue collar customers, Dunkin’ Donuts is planning to have 15,000 US Stores by 2020. Now 2020 is a long way away, in fact it’s when NASA wants to return to the moon, but still this could be a sign of things to come. So instead of having a Starbucks in the parking lot of a Target that also has a Starbucks we might see that silliness with Dunkin’ Donuts in the future.
15,000 stores is a lot, and in fact that would put them over McDonald’s (14,000) and Starbucks (11,000) in the US.
In the end, McDonald’s may be the real target of this move for Dunkin’ Donuts. The people who are willing to pay $5 for a frappuccino are probably difficult to convert into Dunkin’ Drinkers (Dunkin’ Donuts, if you use that I want a cut!) but the $2 premium coffee drinkers from McDonald’s may be willing to switch. In fact, despite “donuts” in the name of the business, the coffee/donut chain actually receives about 65% of its sales from drinks not donuts.
The only major obstacle then that I can see for Dunkin’ Donuts is that McDonald’s has other delicious breakfast items like Egg McMuffins… mmmm Egg McMuffin… to draw in customers, but Dunkin’ Donuts has that covered as well with a plan to roll out more healthy foods.
Certainly Dunkin’ Donuts has a pretty good brand name, however I find it difficult to believe that customers will goto a place that has “Donuts” in its name for health food, even if they offer it. If Dunkin’ Donuts gets more of its money from drinks now anyway, and it’s going to use its bakeries to make more healthy food, then perhaps a brand name change is in order.