The Bermuda Triangle - Starbucks, McDonald’s, Dunkin Donuts
By luck or by design, the overanalyzed triumvirate of Starbucks, McDonald’s and Dunkin Donuts have carved out distinct segments of the market. But you wouldn’t know that from reading “analysis” like this from Scott Rothbort of thestreet.com:
“Just today McDonald’s reported global comp sales increases of 8.2%, and I guarantee you that part of that surge was coffee, tea and breakfast sales coming from Starbucks customers.”
That’s interesting, because McDonald’s didn’t mention it in its earnings review - it credited sales growth to a Monopoly promotion and its new Southern Style Chicken breakfast item. Something tells me McDonald’s grand experiment with coffee is not going to turn out as hoped.
I’ll tell you where those McDonald’s customers are coming from, Scott. From the likes of IHOP and Applebee’s.
Dunkin Donuts, on the other hand, doesn’t need a journalist to misrepresent its situation. It can handle that duty itself. The company, which seems to have just about completely lost its mind as far as marketing goes, is in the middle of a “taste test” campaign, in which it claims to have beaten Starbucks.
Sort of like asking a beer drinker to give you some suggestions on what wine to serve.
And finally, Starbucks. Here is Brad Stone (stage name?) of the New York Times:
“But many people are now abandoning the product, if not the lifestyle that goes with it.”
The writer apparently divined this from Starbucks’ recent earnings report where comps were down 4% (I sent him an e-mail, as well as Rothbort, for clarification, but don’t expect to hear back).
You see, Brad, “lifestyle” is all Starbucks is really selling. If you walk by one, then compare the scene to the inside of a Dunkin Donuts and a McDonald’s, you’ll see what abandonment would really mean to the Starbucks customer. Ain’t happenin’.
So, to all you “coffee analysts” out there: calm down. The situation is under control. Three good companies, three good futures.
Lay off the caffeine for a while.
