Starbucks vs Dunkin - Which Is Better? #starbucksvsdunkindonuts - YouTube

starbucks versus duncan which is better hey  guys if you're looking for a place to have a  

warm cup of coffee it can be confusing  choosing between starbucks and dunkin  

both companies serve different clientele and  we're gonna check out what differentiates the two  

starbucks and duncan are eateries that specialize  in coffee mainly in the u.s the companies offer  

almost similar coffee options but their  business models are very much different  

to get a grasp on how these brands operate it  is wise to take a walk back into time when they  

were founded dunkin donut was founded by william  rosenberg back in the world war ii while working  

for quincy shipyards william realized that workers  had very little options when it comes to lunch  

hence he borrowed one thousand dollars in bonds  to launch his company industrial luncheon services  

this helped him supply sandwiches snacks donuts  and coffee to the workers he did this via an  

old telephone truck which he converted  into a food truck sales soon started  

to trickle in for rosenberg then he opened  another restaurant in quincy massachusetts  

this was called the open kettle and sold  coffee for 10 cents and a nickel for donuts  

he was soon making more than 5 000 a week  and in 1950 changed the name to dunkin donuts  

rosenberg soon learned the power of franchising  and soon had over 100 restaurants by 1963  

locations peaked to over 1 000 by 1979. today  the company has over 3 200 eateries in over 46  

countries in 2018 a rebranding strategy shortened  the name to just duncan in the u.s the company was  

the top seller for donuts retailing more than  2.9 billion in sales starbucks is not as old  

as duncan the company traces its roots back to  their first store and pike place market in 1971.  

the founders were gordon bowker jerry baldwin  and zev siegel the trio found their inspiration  

back in the university of san francisco where they  tried their hand at selling high quality coffee  

they were mainly influenced by pete's coffee  and tea that was opened in 1966 by alfred p  

the trio started selling coffee beans roasted by  peeds they later started doing their own at this  

point they were more known for selling beans than  actually brewing coffee the first starbucks brewed  

coffee was sold in 1982. howard schultz who was  well known with the brand was hired in 1984 and in  

that year starbucks opened its first espresso bar  by 1987 both bowker and baldwin sold their shares  

in starbucks to investors led by schultz the  company later bought out pete's for 3.8 million  

by 1990 the company had opened 30 stores and  in 1992 the company went public at 32 dollars  

per share by 2016 the company had 25 000 stores in  over 75 countries with more than 300 000 employees  

schultz later stepped down as ceo to focus  on the company's high-end roaster business  

let's look at the numbers that differentiate these  two for one dunkin donuts is older than starbucks  

but starbucks generates more revenue at 26  billion a year compared to duncan 1.5 billion  

this can be attributed to starbucks having  a larger footprint it has 30 000 locations  

compared to duncan's 11 300 locations most of  these are in the us where starbucks has 15 000  

locations versus duncan's 8 500 locations the  other factor for starbucks success is that it is  

very aggressive in overseas expansions this means  it has a wider international presence than duncan  

as a total of sales duncan makes just 26  of their total sales from overseas sales  

starbucks continues to make more revenue than  duncan largely due to its numerous stores  

especially overseas the company also charges a  premium for its coffee unlike duncan that focuses  

on competitive pricing to target the middle class  how the two brands operate starbucks has taken to  

build stores that have a more premium feel than  duncan the coffee eateries are more comfortable  

have greater customer customization options  and have a more extensive menu than duncan  

however duncan resembles more of a fast  food restaurant with competitive pricing  

one of the things that stands out for any  starbucks store is the decor and ambiance you will  

find an inviting decor with free internet access  which works well for the young people always busy  

this also offers friends a more relaxed setting  where they can chat or read a book while enjoying  

their favorite glass of coffee this means  their target market are people with more  

disposable income hence the premium offers the  downside is that starbucks is more affected by  

economic cycles than duncan as people have less  disposable income to spend on premium coffee  

the shift for starbucks has  been to introduce like duncan  

more small plates wines beers and sandwiches  to cater for afternoon and evening customers

restructuring in 2018 meant that howard schultz  departed from the company with myron e allman  

being appointed chair of board and melody  hobson as vice chair starbucks continues  

having a competitive edge over duncan lately they  rolled out their food delivery services which have  

been on an upward trend largely due to the covet  pandemic and partnerships with third party food  

delivery companies duncan has continued with its  policy of offering coffee with some donuts or food  

this means it markets itself as a beverage  company the company expanded its menu to  

now include steaks and various sandwiches this  helped it capture the market beyond breakfast  

the dunkin stores resemble fast food  restaurants unlike starbucks that are more cozy  

david hoffman became ceo of duncan in 2018.  how the stores are owned duncan has retained a  

largely franchise-based ownership for their stores  while starbucks has a corporate owned structure  

this means starbucks is mainly owner operator  model and this has implications on revenue  

capital expenditure and cost structures  in accounting company operated stores  

tend to have different capital and  operational structures that franchise stores  

the cost of goods sold cogs is larger than  that of a franchise this translates to the  

expense structure being severely affected  by any changes in the price of coffee beans  

when it comes to capital expenses the burden  is more on starbucks to purchase things like  

kitchen equipment for their stores duncan  does not incur this burden for the franchises  

when it comes to brand development starbucks  offers customers more customization options  

as they can even write the  customer's name on each coffee cup  

their store offers better ambiance hence  attract a different clientele than duncan  

dunkin donuts offers competitive pricing hence is  more attractive to the middle class than starbucks  

this is reflected in their margins with  starbucks running a very tight one due to  

their larger capital expense burden starbucks  has been scoring high on customer satisfaction  

and their popularity abroad means you can always  enjoy your favorite cup of coffee when traveling  

their policy on innovation means they are always  on the lookout to give their customers more menu  

options starbucks keeps scoring higher points  than duncan on various metrics like reputation  

value quality and customer satisfaction  while most duncan stores look like fast  

food restaurants starbucks is more  customer-centric with cozy eateries  

which do you prefer starbucks or dunkin which  eatery do you find the best for meeting a friend  

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