Case Study

COMPANY PROFILE PRESENTATION

DUNKIN’ DONUTS
VS
STARBUCKS
By: Cristine T. Tondo
BSBA FM 2-2
Coffee: For many of us, our morning caffeine routine is
as close as we come to sacred ritual. Perhaps, then, it’s no surprise
that we approach our favorite coffee chains with a near religious
fervor–when Dunkin’ Donuts opened one of its first California
locations, loyal fans started to camp out over the weekend in
anticipation of the store’s Tuesday opening.
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 About
Dunkin’Donuts
Founded in 1950, Dunkin' is America's
favorite all-day, everyday stop for coffee and
baked goods. Dunkin' is a market leader in
the hot regular/decaf/flavored coffee, iced
regular/decaf/flavored coffee, donut, bagel
and muffin categories. Dunkin' has earned a
No. 1 ranking for customer loyalty in the
coffee category by Brand Keys for 14 years
running. The company has more than 12,600
restaurants in 40 countries worldwide.
Dunkin' is part of the Inspire Brands family
of restaurants. 
Dunkin’ Donuts Overview
Fun Fact: Did you know that Dunkin sells
30 cups of coffee every second on
average, which amounts to 1.7 billion cups
of hot and iced coffee globally every year?

Dunkin’ Donuts was

founded on the idea that
success comes to those
who focus on doing what
they do perfectly. With a
simple coffee and baking
recipe, the fast-food
chain grew to become
not only a household
name but also the
fastest growing in the
U.S with 13,000 stores
MISION
We strive to keep you at your
best, and we remain loyal to you,
your tastes and your time. That's
what America runs on. Dunkin' is
the world's leading baked goods
and coffee chain, serving more than
3 million customers each and every
day.
VISION
To be always the desired
place for great coffee
beverages and delicious
complementary donuts &
bakery products to enjoy
with family and friends.

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 Dunkin’ Donuts Strengths

01 Global Operations
03 Strategic Branding

Tapping into a large market offers more customers, With 70 years in the industry, Dunkin’ has always
which increases sales and profits. By 2002, Dunkin’ had stayed relevant to consumers regardless of the
5,000 food joints in 38 countries, which has increased generation. From marketing to dropping ‘Donuts’
over the past two decades to 13,000 restaurants in 46 from its name and menu changes, the company
countries. It has evolved into the largest coffee-and- employs strategic measures to ensure it remains
baked-goods chain in the world. relevant to the target audience. 

02 Superb Franchise Strategy

04 Perfect Positioning

The robustness of business models is put to the Dunkin’ is synonymous with breakfast
test in times of crisis. Dunkin’s franchise nearly everywhere. This is attributed to
strategy cushioned the impact of the its perfect positioning as the to-go for
pandemic and enabled the company to emerge breakfast. By focusing on a small niche,
on the other side better off than competitors. the fast-food chain has set itself apart
from the competition.
 Dunkin’ Donuts Weaknesses

01 Lack of Variety
03 Slower Expansions

1.Dunkin’ relies primarily on coffee and As competitors like McDonald and Burger King
bakery products, which limits the fast-food
expand rapidly across the world, Dunkin’ adopted
chain to a small segment in the food sector.
a limited expansion strategy. This snail-paced
Reducing or streamlining offerings to cater
to a specific sector also limits the number of expansion is a weakness since Dunkin will always
customers. enter new and emerging markets after its
competitors.

02 Over Reliance on US Market

04 Low Financial Capabilities

In FY 2019, 46.7% of the company’s total To compete favorably for market share,

revenues came from the Dunkin’ Donuts US companies require immense financial
segment. With nearly half of its revenue resources. Dunkin’s competitiveness has
generated from the US, Dunkin’ will be severely been undermined by financial constraints
impacted in the case of economic challenges in and was forced to scale back its
the market. expansion plans.
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About
Starbucks
Starbucks is a multinational chain of coffee
shops with over 33,000 stores in 83 different
countries as of 2022. Founded in 1971 and
based in Seattle, Washington, Starbucks sells
a variety of highly customizable coffee
beverages, teas, pastries, sandwiches, and
other snacks. The company positions its
goods as premium and high-end, and the
pricing reflects that.
READ MRE
Starbucks Overview
Starbucks is the world’s largest
American coffeehouse chain
that operates 17,133 company
operated and 16,700 licensed
stores worldwide. It was
founded in Seattle, Washington
in 1971.
With the invigorating vision of
Howard Schultz (current
Executive Chairman), it became
more than a coffeehouse, a
third place between work and
home. Kevin Johnson is the
current CEO of Starbucks.
MISION
In everything we do, we are
always dedicated to Our
Mission: to inspire and
nurture the human spirit –
one person, one cup, and
one neighborhood at a time.
VISION
Starbucks' vision statement says,
"to establish Starbucks as the
premier purveyor of the finest
coffee in the world while
maintaining our uncompromising
principles while we grow." Aiming
to be the leading purveyor means
achieving leadership in ensuring its
coffee and other products are of the
best qualities.
 Starbucks Strengths

01 Strong Brand Image

03 Moderate Diversification

Starbucks Corporation is the most popular and Starbucks has also diversified its business
strongest brand in the food and beverage operations by introducing 
industry. Its size, volume, and the number of loyal innovative merchandises and food items. One
customers have kept growing over time. It has  a such example is the addition of
brand value of $13.01 Billion as per 2021   ice cubes made of Coffee which results in a
Interbrand ranking.  stronger Coffee flavor.

02 Quality, Taste and Standardization

04 Strong Loyalty Program
Starbucks has a great reward program that keeps
Due to its premium blends and delicious coffees,
customers addicted to its coffee. For every $1,
Starbucks has extended globally. It offers
you get 3 stars ($1 = 3 stars). When you collect
excellent quality and consistently standardized
150 stars, you get a free drink (150 stars = 1 free
products in all the locations.
drink). In addition, reward members get the
convenience of mobile payment, pre-order, free
birthday drinks, etc.
 Starbucks Weaknesses

Generalized Standards for most Products

01 Procurement Practices
03
Many social and environmental activists Some of its product offerings are not aligned with
criticized the company for their unethical
procurement practices. They claimed that it the cultural standards of other markets. For
procures coffee beans from impoverished third example, in some areas, its crafted beverages do
world farmers. It has also been accused of not associate with the consumer preferences.
violating “Fair Coffee Trade” principles.

02 High Prices
04 Imitability of Products

For many middle tiers and working consumers, Starbucks doesn’t own the most unique products
Starbucks’ offerings are more costly than  in the market. This makes the imitability of
McDonald’s and other coffee outlets. Its  products quite easy for other companies. Other
high prices reduce affordability for the coffee shops and food chains like McDonalds
consumers. McCafe  and Dunkin Donuts offer almost the
same products.
Starbucks vs Dunkin:
Key Differences
#1. Franchising
Almost every Dunkin’ Brands location is a franchise.
Starbucks stores are disproportionately concentrated
outside of the United States, with corporate-owned and
operated locations accounting for 59 percent of locations in
the United States and 48.6% of locations outside.
On the other hand, due to its larger exposure to the
franchise and rental income, Dunkin’ Donuts has a
fundamentally different economic model than Starbucks,
which is mostly owner-operator. This has far-reaching
consequences for revenue streams, cost structure, and
capital spending.
#2. Branding and Focus
Despite its reputation as a coffee shop, food remains an essential part of
Dunkin’ Donuts’ menu. Dunkin’ Donuts has been focusing on unusual meal
offerings in recent years in the hopes of drawing customers outside of breakfast
hours. Steak was added to the menu in 2014 as part of a push to include heartier
fare with an increasing number of sandwich alternatives. The interiors of
Dunkin’ Donuts and Starbucks establishments are designed differently, with the
former generally mimicking fast-food restaurants in terms of furnishings and
decor.
Starbucks markets itself as a beverage company that also provides a more
traditional coffee house dining experience. Starbucks locations are designed to
be as comfortable as possible for their customers. For those searching for a
place to read, relax, or connect with friends, the free internet access and
friendly atmosphere make it a more appealing option.
#3. Quality
Starbucks has developed a higher-end brand than Dunkin’ Donuts. It has a larger
menu and allows for more product personalization, which is emphasized by the fact
that each customer’s name is written on the side of their cup. Customers are
encouraged to socialize, work, study, browse media, or listen to music while
enjoying a Starbucks product because the company provides a comfortable and
quiet environment with free wireless Internet access.
When these elements are combined, they provide a more luxurious experience that
commands a higher price. Dunkin’ Donuts offers more affordable prices and caters
to the middle class. Dunkin’ Donuts management has stated in corporate filings and
earnings conference calls that it intends to be the lowest-cost provider in the market
while keeping quality above an acceptable level.
#4. Food Alternatives
The menus at Starbucks and Dunkin Donuts are extremely different. For
Starbucks, Scones, muffins, bagels, a variety of bread, and sandwiches
are among the items available. Furthermore, Starbucks now sells bistro
boxes, which are pre-made lunch boxes that often include a sandwich,
some vegetables to feed on, and a small dessert. Cookies, cake pops,
and tarts are among the numerous desserts available.
A health menu is also available at Starbucks. They provide a gluten-free
breakfast sandwich, a reduced-fat turkey bacon sandwich with egg
whites, oatmeal, spinach, and feta wraps.
Starbucks also tries to delight its customers by including seasonal
holiday goods in its offerings. As a result, it sells turkey and stuffing
paninis, carved ham and egg sandwiches, pistachio honey croissants,
gingerbread loaves, penguin cake pops, and snowman cookies for the
winter holidays. They make a duck-shaped cake pop for Easter and a
heart-shaped cake pop for Valentine’s Day.
#5. Options for Drinks
When it comes to drinks, Dunkin Donuts offers the standard small,
medium, and large sizes. They have a wide range of hot and iced coffees,
lattes, hot chocolate, ice teas, fruity iced teas, and coolatas to choose
from. The coffee selections at Dunkin Donuts include the Americano,
latte, macchiato, cappuccino, espresso, and cold brew. On a hot summer
day, coolattas are the perfect drink. Coffee (or fruit juice, depending on
the order), ice, and flavor syrup are combined in this drink. Furthermore
caramel, mocha, raspberry, blueberry, and coconut are among other
flavors available.
Dunkin’ adds unique menu items for the holidays like the food options.
They introduced a Peeps marshmallow-flavored coffee for Easter. They
added an Irish Creme coffee and espresso to their menu for St. Patrick’s
Day. They’ve added a peppermint mocha hot chocolate and almond joy
coffee for the holidays.
Dunkin’ Donuts’ cups are also decorated with the word “joy” and images
of Christmas trees. Pumpkin spiced coffee and lattes, maple-flavored
coffees, and pecan-flavored coffees are available during the fall season.
Key Takeaways
•Starbucks and Dunkin' are the two biggest coffee-focused eatery chains in
the U.S.
•Starbucks is a bigger company in terms of market capitalization and the
number of stores globally.
•Starbucks has also built a more premium brand, has stores that look more
like a comfortable coffee house, has a more extensive menu, and greater
product customization.
•Dunkin' stores resemble more traditional fast-food eateries and they offer
more competitive pricing relative to Starbucks.
•Most of Dunkin's stores are franchises, where it has greater exposure to
franchise and rental income.
 THANK YOU!
By: Cristine T. Tondo BSBA FM 2-2

+123-456-7890 hello@reallygreatsite.com www.reallygreatsite.com