Dunkin donuts growth strategy

While both companies maintain similar menus and overall strategies, there are key differences in their business models related to scale, store ownership and branding. Despite being founded 20 years after Dunkin' Donuts, Starbucks grew aggressively and is a substantially larger company. Starbucks has a larger footprint, with some 28, locations worldwide, compared to Dunkin' Brands' more than 20, points of distribution across the globe. Starbucks plans to open another 3, stores in the U.

Dunkin donuts growth strategy

While both companies maintain similar menus and overall strategies, there are key differences in their business models related to scale, store ownership and branding. Starbucks plans to open another 3, stores in the U.

Dunkin donuts growth strategy

This has major implications for revenue streams, cost structure and capital spending. Company-operated stores have different operational and capital expense structures from franchised locations. The introduction of steak to its menu in was a step toward incorporating heartier food items alongside a growing number of sandwich options.

Starbucks brands itself primarily as a beverage provider that offers a more typical coffee house dining experience. Starbucks locations are designed with the comfort of their customers in mind.

Free internet access and inviting decor offer a more enticing option for those looking for a place to read, relax or chat with friends. This also makes going to Starbucks a potential social activity, turning the stores into a destination rather than a simple distribution location.

This appeals to customers seeking a premium experience. Typically, these customers have higher disposable incomes and are more willing to pay extra for higher quality materials.

Dunkin’ Donuts has come up with a brilliant new strategy for growth within the coffee industry. In the company formed an alliance with Stop & Shop Supermarkets. The agreement allowed Dunkin Donuts to have a full service coffee shop in over 5, stores throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey. Dunkin' Brands has a substantial international presence, though many of its international locations are Baskin-Robbins ice cream stores rather than Dunkin' Donuts stores. Last week Wall Street was bullish on Dunkin' Brands' IPO, the parent company of Dunkin' Donuts, leading to a 40 percent rise in the share price, largely based on potential growth of the company.

In economic downturnspeople with lower disposable incomes are more likely to alter their consumption habits than people with larger financial cushions. While Starbucks is undeniably impacted by the macroeconomic environment, it is firmly established with a more resilient and less price-sensitive customer base, which helps to dampen the blows brought on by economic cycles.

Franchising

These include small plates and sandwiches as well as wine and beer. The company offers a comfortable and quiet environment with free wireless Internet access, encouraging customers to stay to socialize, work, study, browse media or listen to music while consuming their Starbucks product.

Taken together, these factors form a more premium experience and command a higher price point. This discrepancy is a consequence of the different store ownership structures for the two companies, and it has material consequences for the fundamentals available to investors.

Investors should also note the difference in capital structure between the two companies. Changes in Leadership In midboth companies reorganized management.

Shareholder Tools

Who is Myron E. Ullman, New Starbucks Chairman? Hoffman will replace Nigel Travis, 68, who is retiring from his role.

Trading Center Want to learn how to invest? Get a free 10 week email series that will teach you how to start investing.Dunkin' Donuts' interiors are designed differently from Starbucks stores, with the former often resembling fast food stores in furnishings and decor.

Starbucks brands itself primarily as a beverage provider that offers a more typical coffee house dining experience. Dunkin’ Donuts has come up with a brilliant new strategy for growth within the coffee industry. In the company formed an alliance with Stop & Shop Supermarkets.

The agreement allowed Dunkin Donuts to have a full service coffee shop in over 5, stores throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey. Dunkin' Donuts (C): Growth Strategy Supplement | HBS Case Collection | June Harvard Business School Supplement , June Dunkin' Donuts franchises and operates retail donut shops for take-home and in-shop consumption.

Dunkin' Brands has a substantial international presence, though many of its international locations are Baskin-Robbins ice cream stores rather than Dunkin' Donuts stores. Dec 16,  · The company hopes to achieve a 6% growth in Dunkin’ Donuts stores in the U.S.

and achieve a comparable store growth of % in the region. Efforts taken in this direction would be crucial for revenue growth in the future.

Business Strategy - Starbucks and Dunkin Donuts