What Makes Up Your Favorite Cup Of Joe
October 3, 2018
What do you prefer: more bang for your buck or convenience? Starbucks offers high-quality coffee and specialty drinks with an average cost of 3 dollars, while its competitor Dunkin’ features lower cost drinks that are medium quality.
Each coast brought its own take on the caffeine craze, which took off across the nation and internationally.
Starbucks is meant to be a third place to thrive away from work and home. Each store wants to create a coffee shop that is home to rich coffee and celebrates deeper level connections.
The international Dunkin’ Donuts franchise features locally accepted flavors for their donuts.
Thailand offers shredded chicken-and-chili-paste donut, South Korea serves the kimchi croquette and China makes a pork and seaweed pastry. Fun fact: LeBron James from the Los Angeles Lakers has hawked down some these bizarre flavored donuts and now represents the brand in Asia.
Pumpkin Spice War
Starbucks pioneered the Pumpkin Spice craze in 2003, which lead other companies to follow suit after the fall ritual created a huge fandom. This year, Starbucks released it’s Pumpkin Spice Latte on August 28.
Despite the lack of fall in the air, Tuesday was the Pumpkinox PSL fans have been waiting for all year.
This seasonal drink has been released to the masses earlier than last year’s date, which made its debut on Sept. 5. In the first decade of its inception, Starbucks sold 200 million PSLs.
Dunkin’ Donuts, along with a few other competitors, released their version of Pumpkin Spice Lattes a day earlier than the PSL founders. Bandwagon companies have tried to outsell Starbucks during the pumpkin spice everything season.
Dunkin’ Donuts slogan is “America runs on Dunkin” so to carve the pumpkin edge, the company released this year pumpkin spiced bottled ice coffee for Autumn.
Coffee Price versus Quality
Starbucks paved the way for specialty coffee, despite the fact that it is now not meeting the requirements to be labeled as such. This type of coffeehouse brewed today’s coffee culture.
Before the designer coffee featured at Starbucks — espresso, different roasts and flavors — people at home would simply brew cheap, low-quality black coffee in their own kitchen. Not only did the brand spark new realms of the caffeinated buzz, it also ignited consumers interest in coffee from different countries.
To keep up the demand its customers craved, Starbucks prioritized customer experience and consistency amongst all the chains. Although every bean may not be Grade-A quality, coffee drinkers are still not drinking sludge.
Starbucks remains the leader in ethical sourcing, which means it only takes from the environment that can be easily replenished. The company is committed to farm more sustainably while ensuring the coffee quality remains high grade.
Forbes wrote that 75 percent of coffee drinks in the United States are ready to buy a 5 dollar cup of joe because of the high quality.
Dunkin’ Donuts’ has more competitive pricing targeting middle-class customers. DD describes it’s intent as being the lowest cost provider in the market while maintaining quality marginally higher than acceptable minimums.
Dunkin’ coffee has been cultivated to appeal to the broadest population of consumers. Similar to mass production beer companies, coffee is brewed to an acceptable medium that appeals to the majority rather than focusing in on specialized flavors. By broadening their marketable scope, they are able to offer a more affordable product.
The price of coffee at Dunkin’ Donuts also reflects its mantra that “America Runs On Dunkin.” The company wants to embody an on-the-go ideology amongst its customers so it is only fitting that its fast-paced customers are met with convenient prices since not many sticks around the store.
Environment
Starbucks brands itself primarily as a beverage provider that offers a more typical coffee house dining experience. Starbucks locations are designed with comfort in mind by providing free internet access and inviting decor.
Starbucks is an enticing option for those looking for a place to read, relax or meet up with friends. This turns Starbucks into a potential social activity, making the stores into a destination rather than a simple distribution location.
This appeals to customers seeking that familiar coffeehouse vibe. Like Dunkin’ Donuts, Starbucks has also shifted focus to include more products aimed at afternoon and evening customers including small plates and sandwiches as well as wine and beer in some locations.
Dunkin’ Donuts markets itself primarily as a coffee seller that also offers donuts and food, a fact made apparent by a coffee cup prominently featured on the company’s logo and explicit assertion that Dunkin’ Donuts is a beverage company.
Despite building an identity as a coffee seller, food is still an important element of Dunkin’ Donuts’ offering. Recently, Dunkin’ Donuts has focused on expanding beyond breakfast food options in hopes of attracting customers outside of morning hours.
Dunkin’ Donuts’ interior designs often resemble fast food stores in furnishings and decor which lends them towards a place to fill up and go.
Cost and Rewards Program
The apps allow customers to order ahead and pick up their drinks in store while earning rewards via their points programs.
Starbucks offers two stars for every 1 dollar spent, with customers earning a free food/drink reward for every 125 stars they gain. Additionally, there are more ways to earn stars, such as ordering a drink between certain afternoon hours on specific days. Lastly, all customers receive a free drink on their birthday as long as they’ve signed up for the rewards program and ordered at least one drink via the app.
For this comparison, we’ll use a Grande Iced Caramel Latte. This drink costs 4.95 dollars before taxes when ordered via the app and earns me 9.9 stars. If I was to order this drink every weekday before work, it would take me 13 days to rack up the 125 stars I need for a free drink. That’s a total of 64.35 dollars that I need to spend before getting my free drink or food item.
Dunkin’ Donuts, however, offers five points for every one dollar spent, with customers earning a free drink reward for every 200 points they rack up. Dunkin’ Donuts’ reward is only for a free drink, unlike Starbucks, which allows you to use it on a food item. Like Starbucks, customers receive a free drink on their birthday. On the other hand, Dunkin’ customers also receive a free drink when they sign up for the app.
Looking at cost, the Medium Iced Caramel Latte from Dunkin’ costs 3.79 dollars before taxes when ordered via the app and earns me 19 points. If I was to order this drink every weekday before work, it would take me 11 days to rack up the 200 points I need for a free drink. That’s a total of 41.69 dollars that I need to spend before getting my free drink.
When comparing the amount of money needed to spend in order to earn a free drink, Dunkin’ Donuts is the more affordable option.
By ordering comparable drinks at Dunkin’ every day for 11 weekdays straight, I save 22.66 dollars because the price of the drink is cheaper and I hit the 200-points mark two days sooner than I would at Starbucks.
Despite the luxury of food with Starbucks rewards, you would be able to purchase the amount of food you would receive three to four times over with the amount of money saved.