Content Slobberknocker: Dunkin’ Donuts vs. Starbucks
I went into a Dunkin’ Donuts Monday morning for the first time in I don’t know how long, and while I was initially annoyed that there was a long line, it gave me a few minutes to take a look around and see what had changed since I’d last been in…
First, and most importantly to me, I was able to see many trays of doughnuts glowing in a big rack behind the counter. And they had some Boston Creams left. Dunkin’ Donuts’ core content was not being neglected.
I looked at the dozen or so tables in the place and noticed something shocking: No one was eating doughnuts. Some people were tucking into breakfast sandwiches. Everyone was drinking coffee. And not just the 50-cents-a-cup black tar you associate with a doughnut shop, but fancy coffee drinks, the kind people pay $4.59 for at Starbucks without batting an eye.
I watched all five people in line in front of me order big, fancy coffees and not one single doughnut. Did I mention there was a six-car wait at the drive through and that all I saw being passed out the window was coffee?
The Dunkin’ Donuts content menu had been expanded, and at least in the very small sample I had (one data point), it appeared to be a resounding success.
The clerk seemed a little stunned when I order two doughnuts and no coffee, but someone else must have been eating them, because the two I had were fresh and delicious, just as I’d remembered.
Not a few blocks away at the nearest Starbucks, the same story was being told, albeit in reverse. The coffee was still headed out the drive-though window and people were still hanging out inside, mooching the bandwidth on the free Wi-Fi, but a quick look at the menu revealed new breakfast sandwiches and, wait for it, doughnuts. I had one of the doughnuts the other day, a cakey lemon-zest flavored ring that while good, was just a little too highbrow to work as a doughnut.
Starbucks had expanded its content offerings too, but success may prove elusive.
What’s interesting is that both Dunkin’ Donuts and Starbucks decided they could no longer survive as content specialists. Coffee wasn’t enough for Starbucks and doughnuts were not enough for Dunkin’. And it’s not that both brands’ signature products weren’t appealing. They just weren’t enough to sustain growth.
Which brings us to that content inventory you’ve been meaning to do. If your focus is relatively narrow, are your customers being forced to look for elsewhere to fulfill some of their needs? You may be the recognized expert in your field, but do you need to offer a greater breadth of content to keep your customers happy? If so, choose the direction you expand with care. As both Dunkin’ Donuts and McDonalds (with the McCafe) have found out, its often easier to offer less expensive luxury goods than it is to go upscale with a humble product like Starbucks tried with its doughnut.
— Jonathan
