Competitor News

The big news on the competitor front this week was clearly the difficulties Starbucks encountered when the manager of a Starbucks store in Philadelphia called police on two black men who hadn’t purchased anything at the store while they were waiting to meet a third individual. Police arrived and took the 2 gentlemen into custody…

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Competitor News

At its recent annual stockholders meeting, Starbucks announced that it had expanded its food selections and grown the category of the years, with revenue from food increasing 15 percent from 2016 to 2017 and 1.5 times since 2013. Further, they plan to double food sales, which now account for 21 percent of US sales, by…

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Competitor News

Tim Horton’s hasn’t given up the fight with its own franchise owners notwithstanding that their sales have continued to fall in the US as well as across Canada. Earlier this month, parent Restaurant Brands International advised franchisees in a conference call that franchise owners would be expected to remodel and update their restaurants to the…

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Competitor News

Earlier this week, it was announced that Starbucks had opened its first of what they project will be 1,000 global Reserve stores, dedicated to its premium Reserve brand. This first is located at the company headquarters in Seattle. Also, it was reported that they are reducing the number of products in their stores by as…

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Competitor News

Starbucks has announced that it is joining with Chase Bank and VISA to offer co-branded credit cards this month and also announced that it will launch a stored-value card by as early as April of this year. CEO Kevin Johnson made the announcement last week during his Q1 earnings call. The company hopes the new…

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Competitor News

Starbucks had a very difficult reception on Wall Street to its sales and earnings narrative released yesterday. Q1 US same store sales was plus 2, all average ticket, and zero traffic gains from last year. They repeated a now familiar story of weak afternoon and evening business, and declining foot traffic of units inside some…

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Strength in the Middle

Vying to stand out among the competition is nothing new to a quick service restaurant. But recently, some have cast a questioning eyebrow at Dunkin’s middle-price point position in the increasingly crowded coffee marketplace. After last fall’s re-launch of McDonald’s McCafe coffee, analyst Jeremy Scott of Mizuho wrote: “We view Dunkin’s straddle between value-orientation and…

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Competitor News

We noted a number of news items about Starbucks this week and thought we’d pass some along. First, there was the report that they have partnered with Joyride Coffee Distributors to make cold brew coffee for the company using Starbucks’ beans and packaging in in kegs. Joyride delivers non-alcoholic beverage kegs to commercial locations in…

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Competitor News

For the better part of this week, Krispy Kreme was silent on whether the rumors that the company would lay off workers and move its headquarters from Winston-Salem to Charlotte, NC. Well, at long last, the JAB owned company acknowledged that it will lay-off 90 employees from its headquarters, which will remain in Winston-Salem, but…

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Miscellaneous

Dunkin held a CFO call yesterday, during which there was no discussion of the $100 M “fund”. Apparently that will be left for February 2018 meeting, but they did reveal that DD US fees and royalty income to date was tracking a bit higher than last year and that out year accounting standards will cause…

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