Dunkin' taking on Starbucks by adding espresso to its menu
First, Dunkin' dropped the "Donuts" from its name.
Now, it's adding espresso drinks to its menu. Dunkin' says most of its 9,200 U.S. stores will offer lattes, cappuccinos and other espresso-based hot and cold drinks by the holiday season. It's part of an effort by the Canton, Massachusetts-based chain to increase beverage sales - already 60 percent of its revenue - and compete more directly with Starbucks Corp.
But it has a long way to go.
Starbucks controlled 56 percent of U.S. coffee cafe sales in 2017, while Dunkin's share was 27 percent, according to Technomic, a research company. Dunkin' said earlier this year it was investing $100 million to modernize its U.S. stores. The company now says more than half that total is being used to buy espresso equipment.