Dunkin’ Brands is actually confident in which its brand-new espresso will lure coffee drinkers away coming from rival Starbucks.
“Our espresso is actually so not bad, you don’t have to go to Starbucks,” Tony Weisman, chief marketing officer, at Dunkin’, told reporters during the company’s annual media day outside of Boston on Tuesday.
While Dunkin’ has no plans to stray coming from its roots in drip coffee, its newly revamped espresso, which hits stores next week, offers the item a gateway to reach younger consumers. Weisman said 2017 was the first year in history in which consumers under 35 years old drank more espresso beverages than hot drip coffee, which ultimately pushed Dunkin’ in to reevaluating its espresso.
Research shows in which more than 50 percent of millennials are opting for espresso beverages when they order coffee, the first generation to do so, said Dan Wheeler, vice president of strategic initiatives.
“Espresso skews younger — I graduated coming from pop as well as soda to drip coffee, nevertheless my kids are graduating coming from Coolattas to lattes,” Dunkin’ CEO Dave Hoffmann told reporters Tuesday.
As the brand pushes out coming from its stronghold inside Northeast, there’s demand for more specialty drinks. The company has said in which 0 percent of its next 1,000 stores will be west of the Mississippi.
Hoffmann said he’s hoping the combination of not bad flavor, cheap prices as well as fast service will be enough to lure — not only existing customers to try its espresso — nevertheless customers at some other cafes.
The company created a brand-new recipe for its espresso, increasing the amount of coffee used as well as decreasing the amount of water. The brand-new shot is actually thicker, richer as well as less bitter than the old espresso, which launched in 2003 as well as was made with more water as well as brewed at a higher temperature.
This kind of brand-new espresso gives Dunkin’s beverages a more premium taste, nevertheless the item won’t come at a premium cost, executives said.
Dunkin’ will roll out its brand-new espresso drinks at $2 during its initial promotion before rising to $3.39 for a medium drink, compared with $5 or $6 at Starbucks.
In addition to iced as well as hot espresso beverages, the company will also sell affogato, an Italian-style dessert in which a shot of hot espresso is actually poured over a scoop of ice cream, at locations in which are both a Baskin Robbins as well as a Dunkin’.
So far, the company hasn’t seen any cannibalization of its some other beverages in offering these espresso drinks, executives said.
“We’re going after market share,” Parag Patel, a Dunkin’ franchisee in which owns 30 locations in California as well as Maryland. “nevertheless, we are not just trading consumers coming from hot or iced coffee, we are targeting different consumers as well as different day parts.”
Patel, who was the franchisee in which ran Dunkin’s espresso test in Baltimore over the summer, said his stores sold a lot of espresso later inside day. Afternoon traffic is actually something in which many restaurants have tried to cultivated with value offerings as well as brand-new menu items. the item is actually seen as an undervalued time of the day with the potential for boosting sales.
Patel also said in which close to 0 percent of customers who tried the brand-new espresso said they would certainly return to buy the item again.
as well as if the cost isn’t enticing enough, Dunkin’ is actually promising to deliver its espresso beverages to consumers faster than its competitors.
“Dunkin’ is actually a place to take a few [minutes], not 50,” Wheeler said to reporters.
Executives said they are rearranging as well as updating kitchen equipment so employees can make the brand-new beverages fast.
“We may aspire to sit around as well as sip lattes,” Meredith Morris, senior manager of consumer insights, said, alluding to rival Starbucks’ reputation for being a destination location for coffee drinkers. “nevertheless espresso gives you energy while you are on the run. We have busy lifestyles.”
On Tuesday, second-generation franchisees Victor as well as Octavio Carvalho, who own the first Dunkin’ Donuts location as well as the first Next Gen store, praised the company’s collaborative efforts as well as said the financial commitment they had to make to revamp the espresso was “the right thing to do.”
“This kind of is actually where the item’s heading,” Octavio said. “in which’s what people enjoy drinking.”
“The commitment is actually worth the item inside long run,” Victor added.