Starbucks vs. Dunkin

Last night I admitted to my friend S (I say S because she doesn't want me to use her full name online, weirdo) that I have been known to frequent Starbucks on occasion. Now, if you don't know her, let me fill you in. She's a Dunkin type of girl and thinks Starbucks is pretentious and overpriced. But I think she's a hypocrite because when she told me about the type of coffee house she'd like to open one day, she was describing Starbucks to me. Yes, S, I called you a hypocrite!

The Starbucks vs. Dunkin debate led me to think of Dunkin's business model. If they ever want to expand on it, they should read on. I'm no business genius but here's the deal. Dunkin Donuts focuses their entire business on breakfast and coffee or the ever-so-needed afternoon boost. Yes, they sell donuts but when is the last time you've seen a Dunkin Donuts commercial advertising donuts? Their current slogan is "America runs on Dunkin." I think that 9 out of 10 times, I go to Dunkin for coffee and/or breakfast. And that model has worked fine so far but now they face legitimate competition since McDonald's has come out with premium coffee to go along with their breakfast sandwiches and I've heard that it's pretty good too. It's not only the fact that they face some competition, but they have the capability for a sound expansion on their product right under their nose!

So what is it? I say go with a modified Old Navy/GAP/Banana Republic model. It's really the same company which caters to different audiences/niches. Do the same thing with Dunkin! From my limited knowledge of how Dunkin Donuts' franchising works, I believe that one store with a kitchen supplies satellite stores with donuts. These smaller satellite stores are a perfect fit for the breakfast/afternoon boost crowd. Not many people are going to linger around there. They want their coffee and food and then they're on their merry way. Now what if you approach it differently for a larger store with more room? What if you make it fancier? Put in carpeting and big couches and chairs. Dim the lights. Put on some music and I don't mean a radio station. Put in a wireless hotspot for God's sake! Minor tweaks!

I know that some people believe that when a company tries to go in a new direction which is not in line with the formula that's worked for them for years, it could lead to a big failure, but I believe that this isn't the case with my proposal. They already make flavored coffees and pastries! Add on some brownies and cookies and cakes to the menu and you're on your way to catering to a different crowd. One that will come out at night and hang out there with their laptops and textbooks; going back to the counter for a another latte or snack. I think it's a sure winner.

I want the credit for this if it really happens. Wait, not only the credit but I want COMPENSATION!