Dunkin' eyes Starbucks drinkers with new espresso line
Dunkin’ is going after Starbucks where it hurts the most: espresso.
The Massachusetts-based chain announced on Wednesday that it’s adding several espresso items to its menu in time for the holiday season.
The launch of the new items, comes nearly one month after the company unveiled a new name change, dropping "donuts" from its title. The company is now referred to simply as Dunkin'.
The change is part of the brand’s overall push to focus on growing its share of the hot- and iced-espresso category.
Earlier this year, Dunkin’ Brands started its redesign when it announced plans to invest approximately $100 million into its business operations, with more than half of that being committed to restaurant equipment.
“Espresso is one of the fastest growing coffee categories, particularly among younger consumers, and with our coffee credentials we believe we have a tremendous opportunity to improve our awareness and credibility among espresso drinkers,” Tony Weisman, chief marketing officer of Dunkin’ U.S., said in a statement.
Weisman added that Dunkin’ will have a new lineup of lattes, cappuccinos, Americanos and macchiatos.
Dunkin’ said the initiative includes installing new machines to training employees with the goal of offering customers a cheaper alternative to Starbucks.
However, just like Starbucks, Dunkin has struggled to attract new customers in the U.S. and the new business model could be risky. During the second quarter, Dunkin’s U.S. same-store sales grew 1.4 percent, as an increase in average check offset a decrease in traffic.
The company is scheduled to report third-quarter results on Thursday.
Dunkin Brands shares are down 3 percent Wednesday on the news.