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Coffee price war takes jolt out of Dunkin’ results | Financial Times

The coffee price war that has broken out among US fast food chains has taken the jolt out of Dunkin’ Brands’ first quarter results.

In a bid to bolster traffic, Dunkin’ has been making a push into more premium coffee offerings such as cold brew and espresso-based beverages. However, competitors have responded by cutting prices, with McDonald’s selling any size coffee for $1 and specialty drinks like ice lattes for $2.

By contrast the price of a small coffee at Dunkin’ starts at around $1.59.

The competition has not only lowered traffic but it has also given Dunkin’ less room to raise prices. Dunkin’s Baskin-Robbins business also offered little support, with like-for-like sales down 2.4 per cent in the US.

Overall, group revenue for the quarter came in at just $190.7m, a 0.5 per cent increase from the year ago period and below the $192.4m the market was expecting.

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Coffee price war takes jolt out of Dunkin’ results.

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