(Monica Eng/Chicago Tribune)
Reuters | Despite efforts by McDonald’s to undercut competitors on price, Dunkin
Donuts’ market share in coffee is steady and growing.
“The big
hurt has not been Dunkin to McDonald’s or McDonald’s to Dunkin,” said
Mark Nunnelly, managing director at Bain Capital. “It’s been Dunkin and
McDonald’s to your local fill-in-the-blank convenience store.”
Nunnelly, whose firm is one of three private equity owners of the
doughnut chain, said Starbucks has been hurt the most by the price war
and the weak economy.
“The higher-priced players at $4 or $5 for a latte have obviously had
the toughest year through the crisis,” he said. “The more accessible
price point players like Dunkin and McDonald’s have fared better through
that period.”
More consumers are trading down from expensive drinks to cheaper plain
coffee rather than switching among the various outlets, he said.
“If you look at Dunkin’s comps in coffee and McDonald’s comps in coffee,
I think you would say you’ve got a pretty loyal set of customers both
places, that the price points aren’t different enough,” he said.
Oak Brook-based McDonald’s has said strong sales of its McCafe line of coffee drinks were in
part responsible for a surprise 1 percent increase in same-store sales in
December. January U.S. same-store sales declined 0.7 percent, however.
Starbucks has now become an official NRA sanctioned business.
They have a nationwide policy of complying with their states’
firearms laws and welcome gun owners who can carry legally in all their restaurants. Oh thats right, the tyranny of the machine wont allow you little kids in Illinois to have any .
Awwwwww
Yet another reason I like Starbucks!
DD = Swill. It may be popular, but then again, Britney Spears was popular too. There’s no accounting for taste when the general public is involved.
@007 … are you kidding, I’ve drank both DD and Starbucks and can tell you I prefer DD over the taste of the higher priced swill Starbucks serves. I guess you wouldn’t understand this simple fact: I am the center of my universe and I drink what I like…not what so called ‘experts’ such as yourself say I should like. And guess what, I’m not ashamed to like what I like and spend MY money where I choose.
I have never understood why Starbucks attracts so many people. I compare their coffee to what I imagine toxic waste tastes like.
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