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Dunkin’ Donuts goes after Starbucks’ loyalty customers

dunkin coffee cups

Dunkin’ Donuts plans to snare business from Starbucks after the competing coffee chain announced changes to its loyalty program that are not sitting well with some customers, Reuters reports.

Dunkin’ Brands CEO Nigel Travis told Reuters that he anticipated the Starbucks changes would have some backlash, thus creating an opportunity for the coffee-and-donuts brand.

“We feel excited about the change to the Starbucks’ loyalty program,” he said, noting that Dunkin’ Donuts has been distributing $5 gift cards to customers. 

Customers switching from Starbucks could boost Dunkin’ Donuts’ comps by 0.25 to 0.4 percentage points, not including new units, one analyst told Reuters. This would be a welcome uptick for Dunkin’ Donuts, as the chain looks to new initiatives to spur its domestic sales, which it said were “disappointing” last year.

According to a recent survey, Starbucks’ brand perception has fallen by half in the days since the chain announced that it would revise its rewards program so that customers earn points relative to the dollars they spend.

Read the full story via Reuters. 

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