Starbucks Vs Dunkin’, both are the largest coffee shops in the United States, suggesting the rivalry between them. However, are they really the same face of a coin to compare? Or are they differentiated after all?
Let’s find out about what makes Starbucks Vs Dunkin’ rivals as eatery chains, but also, what makes them unique, like their business model, branding, and franchising among other factors that help customers define their feelings towards a brand.
Starbucks Overview
Starbucks was founded in 1971 as a single store in Seattle. The name is inspired by the great American novel, Moby-Dick, and evokes the maritime tradition of the first coffee merchants in the world. However, after Howard Schultz (actual CEO) joined the company, he brought the Italian tradition of coffee shops to the brand, by introducing Starbucks as a third place to belong besides home and work. Thus, the company’s mission transformed into inspiring and nurturing the human spirit.
Dunkin’Overview
Dunkin’ used to be a simple donut shop in Quincy, Massachusetts. Now, it’s one of the favorite coffee shops in the U.S. with approximately 8,500 stores in the country. The brand is compromised to serve high-quality and delicious coffee in every cup without overcharging its customers. This inspires its mission to lead as a provider of a broad range of coffee blends, flavors, and formats along with a friendly and convenient environment.
The name Dunkin’ replaced the former, Dunkin Donuts, in 2019
Branding
Along with the change of name, Dunkin’ began rebranding itself as a beverage-led company. Thus, the brand focuses on selling primarily coffee but also donuts and other food. Meanwhile, Starbucks also brands itself as a coffee provider but its consumer base is more resilient and less price-sensitive than Dunkin’s, which explains the premium experience it focuses on offering.
Franchising
An interesting and very important difference between Starbucks and Dunkin’ is that the former’s locations are all company-owned while the latter’s locations are franchises. What does it mean?
Company-owned stores are those in which the company parents are responsible for every operation. In other words, the company of Starbucks is in charge of overseeing the work of its stores, hiring employees, and handling suppliers. On the contrary, a franchisor sells its franchises. Then, the franchisee owns and operates the store for a fee while using the franchisor’s business model. According to this, every Dunkin’ location in the world is self-owned and self-operated.
Decor
Starbucks has a more inviting and comfortable decor since it’s designed to make the place a destination itself. On the other hand, Dunkin’ decor notably resembles fast food stores, which is compatible with its colors: orange and purple.
Quality
Before addressing the quality offered by Starbucks Vs Dunkin’, let’s don’t forget that they satisfy different needs and both of them do it beyond expectations. Dunkin’ targets people who are looking to grab a cheap but good cup of coffee on their way to work, while Starbucks encourages customers to stay and chat or work inside the place, so it provides a more comfortable environment, a larger menu, and customization of products. All these features speak of higher quality, but also reflect Starbucks´s higher prices.
Price Comparison
Everybody knows that Dunkin’ offers more competitive prices, so it’s definitely less expensive than Starbucks, but let’s see how much “less expensive” it is:
- A large latte costs around $2.49 at Dunkin’ while almost $4.15 at Starbucks.
- A croissant with egg, bacon, and cheddar is approximately $3.59 at Dunkin’ and $4.75 at Starbucks.
Also, their rewards systems are different. For example, Dunkin’ uses “points”; you get 5 points for every dollar spent and when reaching 200 points you get a free drink. Starbucks uses “stars”; for every dollar spent you get 2 stars and need 150 stars to get a free drink. In the end, you must pay $40 at Dunkin’ in order to get a free drink while $75 at Starbucks.
Menu Differences
At Starbucks, you can enjoy a more premium menu that includes muffins, sandwiches, bagels, bistro boxes, cake pops, tarts, and different healthy wraps and sandwiches. The variety of drinks consists of iced and hot lattes, teas, and coffees, but also refreshers and frappuccinos of multiple flavors. Besides, every holiday Starbucks adds seasonal drinks and foods, like the Chestnut Lattes and Gingerbread Lattes in December.
When it comes to food and drinks, Dunkin’ also sells bagels and muffins but the customer’s favorites are the donuts and munchkins. These come glazed, powdered with sugar, or stuffed with different jellies. Dunkin’ features seasonal items as well, like Hershey Kiss donuts for Valentine’s Day and Apple Crips donuts during fall. In the drink category, you can find americanos, lattes, cold brews, and espressos. A distinguishable drink, however, is the Coolatta, which is a blend of coffee, flavor syrup, and ice.
Conclusion
Starbucks and Dunkin’ may appear as rivals on the outside but they offer completely different services and target different audiences. They offer pretty similar types of food and coffee, although Dunkin’ is noticeably less expensive than Starbucks. Besides the price, you shouldn’t judge one or the other as better; instead, understand that they both do a great job at achieving what they wanted to: Starbucks offers a premium experience for a higher cost, while Dunkin’ provides a tasty yet cheap coffee for a quick pick-up.
Frequently Asked Questions
How exactly is Starbucks’ name inspired by Moby-Dick?
Starbucks is the name of a character in Herman Melville’s novel.
What is the reason behind Dunkin’ changing its name?
It changed it after rebranding itself as a beverage-led company, reducing the importance of selling donuts.
