Comparative Analysis Of Starbucks And Dunkin' Donuts

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Comparative Analysis Of Starbucks And Dunkin'
Donuts
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POST HIGHLIGHT The two most well-known coffee
shops should be known to all coffee
enthusiasts Starbucks and Dunkin' Donuts. But
which is better compared? Which one do you
usually use? Do you think of Starbucks or Dunkin
Donuts when you want to have a cup of coffee in
the morning? You can make this selection with the
aid of numerous variables. factors including the
atmosphere, rates, apps, food and beverage
alternatives, and food options. More than 3,100
Dunkin Donuts outlets can be found in more than
thirty nations, including China, Russia, Spain,
Brazil, Chile, and Canada. In the United States,
they have 8,500 stores spread over 41 states.
This results in a global total of more than
11,600 stores. Starbucks operates 14,600
locations within the United States and 14,718
locations abroad. They have locations in 63
nations, including Turkey, France, China, Mexico,
Thailand, and Canada. This demonstrates how
well-liked both brands are. Everywhere in the
world, they both have thousands of places. But
which is better? In this blog post, we will
provide a Comparative Analysis Of Starbucks And
Dunkin' Donuts. Starbucks Vs Dunkin' Donuts.
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CONTINUE READING.. Coffee resonates with general
citizens. A lot of people are dependent upon
coffee because it contains caffeine, and helps a
person to work longer. Now people assume that the
word coffee is derived from elements that keep
them warmed up for the entire day and pumped up
during work hours. However, there is a myth to
this narrative. Coffee is not altogether healthy
as it makes people pursue the idea of coffee
making a person alert.  All coffee lovers
should be familiar with the two most well-known
coffee shops Starbucks and Dunkin' Donuts. But
which is superior in comparison? Despite being
established 20 years after Dunkin' Donuts,
Starbucks grew quickly and today is a far larger
company. Dunkin' Brands recorded sales of more
than 860 million in FY 2017, while Starbucks
made over 22 billion in revenue. Compared to
Dunkin' Brands' more than 20,500 points of
distribution worldwide, Starbucks has a greater
footprint with over 28,209 locations. With over
14,000 outlets nationwide, Starbucks outpaces
Dunkin' Donuts, which has about 9,200 locations.
Starbucks intends to expand its presence in
regions like China by opening an additional 3,400
outlets in the United States by 2021, while
Dunkin' expects to add 1,000 net new stores by
the end of 2020. As of the end of 2017, Starbucks
had far more international expansion, with 27,339
stores in 75 different nations. Although the
majority of Dunkin' Brands' overseas outlets
are Baskin-Robbins ice cream shops rather than
Dunkin' Donuts shops, the company has a sizable
global footprint. While there are only 3,397
Dunkin' Donuts outlets outside of the United
States, the firm has 5,422 Baskin-Robbins
locations worldwide as opposed to 2,560 in the
United States.
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Less than 4 of Dunkin' Donuts' overall Q1 2018
sales, which totaled 139.9 million, came from
its overseas operations, which brought in 5.4
million. In the most recent quarter which
concluded on April 1, Starbucks' consolidated net
revenues of 6 billion were attributable to
markets outside of the Americas by almost 30. In
an effort to challenge the footprint of its main
rival, Dunkin' has announced aggressive ambitions
for both domestic and international expansion.
However, the differences in magnitude are the
result of different expansion strategies. Comparat
ive Analysis Of Starbucks And Dunkin'
Donuts Franchising Franchises make up the
majority of Dunkin' Brands' locations. Since
corporate-owned and operated stores make up 59
of the stores in the United States and 48.6 of
the locations abroad, licensed Starbucks
locations are disproportionately found outside of
the country. Compared to Starbucks, which is
mostly owned by owner-operators, Dunkin' Donuts
has a higher exposure to the franchise and rental
income, which results in a fundamentally
different business. This has significant effects
on revenue sources, cost structures, and capital
expenditures. Operational and capital expense
structures in company-operated stores differ from
those in franchised sites. Starbucks' cost of
goods sold (COGS) and retail running costs as a
proportion of sales are substantially higher than
Dunkin's.  Changes in coffee bean prices have a
more significant impact on Starbucks'
earnings since COGS is so much more prominent in
its expense structure. 
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Considering that Dunkin' Donuts is not required
to purchase cooking equipment for franchise
sites, Starbucks also has a heavier load of
capital expenses. Food Choices The menu
selections at Dunkin Donuts and Starbucks are
significantly different. Starbucks serves
sandwiches, bagels, muffins, scones, and other
baked goods. Starbucks also offers premade
lunchboxes called "bistro boxes," which are sold
separately and often include a sandwich, some
snack-size vegetables, and a small dessert. They
also sell cookies, cake pops, and tarts, among
other dessert delicacies. A healthy menu is also
available at Starbucks. They sell breakfast
sandwiches, oatmeal, spinach and feta wraps, and
reduced-fat turkey bacon sandwiches with egg
whites. The spinach and feta wrap is shown in the
image on the right. I assure you that it is not
tasty, despite how it may appear. except if
you're a vegetarian. In an effort to gratify
their customers, Starbucks has added seasonal
Christmas goods. Starbucks has also added new
culinary options for the winter holidays,
including paninis with turkey and stuffing,
carved ham and egg sandwiches, croissants with
pistachio honey, gingerbread loaves, penguin cake
pops, and snowman cookies. They add a duck-shaped
cake pop for Easter and a heart-shaped cake pop
for Valentine's Day. On the other side, Dunkin
Donuts offers bagels, muffins, croissants,
sandwiches, hash browns, and wraps. The main
distinction between Dunkin Donuts and Starbucks
is that the latter sells highly favored goods
like donuts and munchkins. Donuts are available
in a variety of flavors, including chocolate
frosted, chocolate glazed, vanilla frosted,
boston creme, and glazed. The most common
flavours of Munchkins are glazed, glazed
chocolate, powdered sugar, and jelly. There is
a healthy menu at Dunkin. 
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In addition to turkey sausage sandwiches, egg and
cheese sandwiches, oats, multigrain bagels, and
veggie egg white sandwiches are available. They
increase their offerings for the winter holidays
to include Santa doughnuts, Hershey kiss donuts,
and cinnamon cream cheese. They created the
heart-shaped doughnuts in the photo for
Valentine's Day. Drink Options The standard sizes
for drinks at Dunkin Donuts are small, medium,
and large. A selection of hot and iced coffees,
lattes, hot chocolate, iced teas, fruity iced
teas, and coolatta are available at Dunkin
Donuts. Americano, latte, macchiato, cappuccino,
espresso, and cold brew are among the coffee
options at Dunkin' Donuts. A coolatta is the
ideal beverage to have on a warm summer day. It
consists of a mixture of coffee, ice, and flavour
syrup (or fruit juice, depending on the
sequence). Caramel, mocha, raspberry, blueberry,
and coconut are among the flavours. Dunkin
expands their menu with extra festive products.
They added a Peeps marshmallow-flavored
coffee for Easter. They expanded their menu to
include Irish Creme coffee and espresso for St.
Patrick's Day. For the winter holidays, they also
provide almond joy coffee and peppermint mocha
hot chocolate. Along with images of some
Christmas trees, Dunkin' Donuts also updates its
cups to include the word "joy." They have pumpkin
spiced coffee and lattes, maple coffees, and
pecan coffees available during the fall. However,
Starbucks offers its beverages in many sizes,
including tall, grande, and venti. The decision
to label the sizes in Italian was made when
Howard Schultz, the man behind Starbucks,
traveled to Italy. Lattes, hot and iced teas,
lemonade, hot chocolate, various hot and iced
coffees, as well as their renowned frappuccinos
and refreshers, are just a few of the drinks that
Starbucks serves.
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They serve espresso, cappuccino, americano,
latte, and macchiato in addition to
coffee. Starbucks's signature drink is the
frappuccino. Depending on the type of frappucino
you get, it is coffee combined with flavours,
ice, and other components. Caramel, mocha,
chocolate chip, and vanilla bean are the most
popular flavours. A refresher from Starbucks has
fruit juice, ice, and a small quantity of coffee.
Berry hibiscus, strawberry acai, mango
dragonfruit, and my personal favourite, the pink
drink, are all popular tastes. Passion fruit
juice, coconut milk, acai juice, and strawberries
are combined to make the pink beverage. In
addition, Starbucks expands its menu over the
holidays. They serve peppermint mocha hot
chocolate, chestnut lattes, caramel brulee,
gingerbread and eggnog lattes, and toasted white
chocolate mocha coffee throughout the winter
holidays. There are winter holiday beverages seen
in the image. To help their clients get in the
festive spirit, they also switch their cups to
red, white, and green. The coolata and
frappucinos are the two drinks that differ the
most from one another. Although they both provide
cold drinks, the taste options vary. Their
flavours are also extremely diverse. Also
Read What Is Brand Storytelling And Why Is It
Important? Marketing and branding A coffee cup is
prominently shown on the business's emblem, and
corporate management has made it clear that
Dunkin' Doughnuts is a beverage company. Dunkin'
Donuts markets itself as a coffee seller who also
sells donuts and food. Despite developing a
reputation as a coffee seller, food continues to
play a significant role in Dunkin' Donuts' menu.
In an effort to draw consumers outside of
breakfast hours, Dunkin' Donuts has shifted its
attention more and more toward non-conventional
food alternatives in recent years.
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Steak was added to the menu in 2014 as a step
toward adding heartier meal items in addition to
an increasing number of sandwich alternatives.
Compared to Starbucks locations, Dunkin' Donuts
interiors are distinct, with the former
frequently evoking images of fast food
restaurants in terms of furnishings and
decor. Starbucks positions itself largely as a
beverage supplier with a more standard dining
environment. The comfort of Starbucks patrons is
a priority in the design of its establishments.
Those looking for a place to read, unwind, or
hang out with friends have a more alluring option
thanks to the free internet connection and warm
atmosphere. Additionally, this turns visiting a
Starbucks into a viable social activity,
transforming the establishments into destinations
rather than just somewhere to buy coffee.
Customers looking for a premium experience would
like this. These customers typically have more
money to spend and are more willing to pay more
for items of higher quality. People with smaller
disposable incomes are more inclined to change
their purchase patterns during economic downturns
than those with larger financial safety nets.
Although the macroeconomic environment
undoubtedly has an impact on Starbucks, the
company is well-established and has a consumer
base that is hardier and less price-sensitive,
which helps to soften the blows caused by
economic cycles. Like Dunkin' Donuts, Starbucks
has changed its emphasis to include more items
geared toward customers in the afternoon and
evening. These include sandwiches, small meals,
wine, and beer. Both businesses have intensified
their strategic technological initiatives, such
as mobile ordering and delivery, which explains
Dunkin' Donuts' partnership with Waze, a
navigation software from Alphabet Inc. (GOOGL),
which was launched in March 2017.
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Quality Compared to Dunkin' Donuts, Starbucks has
developed a more premium brand. Starbucks
provides a wider selection of food and a greater
degree of product personalization, which is
emphasized by the addition of each customer's
name to the side of their cup. The business
encourages consumers to stay and chat, work,
study, read media, or listen to music while
eating their Starbucks beverage by providing a
quiet, pleasant setting with free wireless
Internet connection. When combined, these
elements create a more quality experience and
justify a higher price. With a focus on the
middle class, Dunkin' Donuts offers more
affordable prices. Dunkin' Donuts management has
stated its intention to be the lowest-cost
provider in the market while maintaining quality
above an acceptable standard in corporate filings
and earnings conference calls. Prices Dunkin
Donuts' pricing is significantly lower when
compared. At Dunkin' Donuts, a large latte runs
about 2.49. However, Starbucks charges 4.15 for
a venti latte, almost 2 more than Dunkin. Costs
for Starbucks' food are likewise higher. While a
bacon, egg, and cheese croissant costs 4.75 at
Dunkin', it only costs 3.59 there. The data
above compares the costs of normal iced coffee at
the two establishments. Without any additional
seasoning, Dunkin Donuts is about 30 cents less
expensive. Despite the seeming smallness of the
difference, it can mount up. Saving 30 cents on a
cup of coffee might add up over time if you drink
one every day as I do. In a hypothetical
scenario, switching from Starbucks to Dunkin
Donuts every day for a year would save you about
110. (365x.3).
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