The Crowns Vengeance (Parker Chase Book 2)


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Indeed, Dunkin' loyalists are quick to point out that despite the perception that Starbucks invented the concept of selling high-quality coffee for a premium, the idea was pioneered by Dunkin' Donuts' founder, Bill Rosenberg, when he started the chain in Part of the benefit of competition is it forces companies to think more carefully about what exactly they're offering customers.

The differences between rivals may be greater than they look on the surface. Dunkin' Donuts, Starbucks and Krispy Kreme all sell pastries and caffeinated beverages, so they're obvious competitors.

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But beneath that similarity, they're serving different markets. Krispy Kreme's customers visit only occasionally but buy dozens of donuts; that chain is peddling a dietary splurge, not daily sustenance. Starbucks, like Dunkin', tries to infiltrate customers' daily routines, but Starbucks chief Howard Schultz has always seen his stores as neighborhood hangouts, a sort of nonalcoholic "Cheers" setting with comfy chairs, porcelain cups and, increasingly, wireless Internet access.

Dunkin' Donuts, in contrast, is increasingly built on speed. Most of its new stores feature drive-throughs, and the chain bills itself as a pit stop for harried commuters. One recent TV ad features a cops-and-robbers chase in which everyone stops for coffee before resuming the pursuit. As Starbucks goes after Dunkin' strongholds, Dunkin' managers think endlessly about how to get even faster. No question: Dunkin's tradition of having workers customize drinks behind the counter adds to service times.

But so far the chain has decided to keep this small luxury. If Starbucks seems ubiquitous, that's because national expansion was part of Schultz's game plan when he began reinventing the coffeehouse in the mids. But that fast-growth strategy caused growing pains early on.

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Dunkin' Donuts, by contrast, is still concentrated on the East Coast; it has just a few dozen locations west of the Mississippi. Instead of conquering new lands, Dunkin's managers have spent much of their energy exploring how deeply the brand could penetrate existing markets.

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The result: in Massachusetts, where the quickest way to get someone lost is to give directions that include the phrase "Turn left at Dunkin' Donuts," there's one store for every 7, residents, compared with one Starbucks for every 15, in its home state of Washington. When Luther joined Dunkin', he realized that its expansion had been too slow. But slow-mo growth is hardly fatal. Remember that Wal-Mart remained largely a Southern retailer until a decade ago. Home Depot went national long before Lowe's, but today analysts are more bullish on Lowe's, in part because with just locations compared with Home Depot's more than 1,, Lowe's has more room to expand.

Luther points to five cities--Tampa, Fla. Eventually he hopes to lead the brand toward the West Coast. And it's starting to integrate Dunkin' stores with their corporate sibling Baskin-Robbins to woo afternoon customers with coffee-and-cone pairings. How do Dunkin's prospects look?

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Koehn, the Harvard professor--who admits to her own heavy Starbucks habit--argues the Seattle chain is still the better bet. The reason: in a stressed-out world, it's selling a luxurious escape. But for many people, those leisurely moments are harder to come by. Consider how many book-club meetings fold because no one had time to read the book. Or how many people sign up for spinning classes but are too busy to attend. These days, beverages account for more than half of revenues in some markets. So maybe Dunkin's managers didn't score points for originality. Dunkin's successful appropriation of competitors' products shows how exaggerated the concept of being the pioneer--or in Internet parlance, the first mover--can be.

From Atari's videogames which created a market now dominated by others to Apple's failed Newton which paved the way for Palm , business is filled with examples in which profits accrue to companies that copy, rather than invent, products. Indeed, Dunkin' loyalists are quick to point out that despite the perception that Starbucks invented the concept of selling high-quality coffee for a premium, the idea was pioneered by Dunkin' Donuts' founder, Bill Rosenberg, when he started the chain in Part of the benefit of competition is it forces companies to think more carefully about what exactly they're offering customers.

The differences between rivals may be greater than they look on the surface. Dunkin' Donuts, Starbucks and Krispy Kreme all sell pastries and caffeinated beverages, so they're obvious competitors. But beneath that similarity, they're serving different markets. Krispy Kreme's customers visit only occasionally but buy dozens of donuts; that chain is peddling a dietary splurge, not daily sustenance. Starbucks, like Dunkin', tries to infiltrate customers' daily routines, but Starbucks chief Howard Schultz has always seen his stores as neighborhood hangouts, a sort of nonalcoholic "Cheers" setting with comfy chairs, porcelain cups and, increasingly, wireless Internet access.

Dunkin' Donuts, in contrast, is increasingly built on speed.

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Most of its new stores feature drive-throughs, and the chain bills itself as a pit stop for harried commuters. One recent TV ad features a cops-and-robbers chase in which everyone stops for coffee before resuming the pursuit. As Starbucks goes after Dunkin' strongholds, Dunkin' managers think endlessly about how to get even faster. No question: Dunkin's tradition of having workers customize drinks behind the counter adds to service times.


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But so far the chain has decided to keep this small luxury. If Starbucks seems ubiquitous, that's because national expansion was part of Schultz's game plan when he began reinventing the coffeehouse in the mids. But that fast-growth strategy caused growing pains early on. Dunkin' Donuts, by contrast, is still concentrated on the East Coast; it has just a few dozen locations west of the Mississippi.

Instead of conquering new lands, Dunkin's managers have spent much of their energy exploring how deeply the brand could penetrate existing markets.

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The result: in Massachusetts, where the quickest way to get someone lost is to give directions that include the phrase "Turn left at Dunkin' Donuts," there's one store for every 7, residents, compared with one Starbucks for every 15, in its home state of Washington. When Luther joined Dunkin', he realized that its expansion had been too slow.

But slow-mo growth is hardly fatal.

Remember that Wal-Mart remained largely a Southern retailer until a decade ago. Home Depot went national long before Lowe's, but today analysts are more bullish on Lowe's, in part because with just locations compared with Home Depot's more than 1,, Lowe's has more room to expand. Luther points to five cities--Tampa, Fla. Eventually he hopes to lead the brand toward the West Coast. And it's starting to integrate Dunkin' stores with their corporate sibling Baskin-Robbins to woo afternoon customers with coffee-and-cone pairings.

How do Dunkin's prospects look? Koehn, the Harvard professor--who admits to her own heavy Starbucks habit--argues the Seattle chain is still the better bet.

The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2) The Crowns Vengeance (Parker Chase Book 2)
The Crowns Vengeance (Parker Chase Book 2)

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