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While McDonalds and Dunkin’ made efforts to increase their sales in the specialty coffee market, Starbucks expanded their food selection. Not only is Starbucks still in the lead in coffee sales, but they have seen some growth. In fact, Starbucks has seen some growth during this period. Once Dunkin’ and McDonalds new coffee brands had established themselves on the market, it became clear that there was enough coffee business for all three competitors to share in the wealth.ĭunkin’ Donuts and McDonalds both set out to take a share of the market away from Starbucks, and though they both have successfully established their own slice of the coffee pie, their emergence in the market has not dramatically diminished the Starbucks brand, or really hurt their sales significantly. Following in the footsteps of Dunkin’ Donuts, McDonalds decided to launch their McCafe brand at very competitive prices. Then, in 1999, McDonalds decided to jump into the game and start offering their own espresso drinks. This seemed like a direct attack on Starbucks, and the first real competition for the brand since their rise to the top of the coffee market. Dunkin decided to add espresso drinks to the menu and started making lattes, mochas and frappuccinos with a much smaller price tag. In the mid-nineties, Dunkin’ Donuts noticed that Starbucks still dominated the coffee market, even with extremely high prices, and decided to try to get in on the game while undercutting Starbucks in price. They raised their prices multiple times, and still enjoyed plentiful business and a steady growth in sales no matter what they did. Starbucks had the coffee market in its back pocket. The other fast food places who simply offered regular coffee couldn’t possibly compete with the selection that Starbucks offered. At Starbucks, you can get any kind of coffee you could possibly want, served any way you like it. Starbucks became the kings of the fast-food coffee world seemingly overnight by offering what other fast-food coffee shops couldn’t possibly offer in terms of selection.
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Comedian Lewis Black even has a joke about the phenomenon.
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In bigger cities, it is not even an uncommon sight to see a Starbucks right across the street from another Starbucks. These days, no matter where you live in the United States, outside of the smallest country towns, there seems to be a Starbucks on every corner. Just a few decades later, Starbucks coffee has become a behemoth in the coffee industry. A little coffee company from Seattle opened their doors in 1972 to serve their own coffee roasts to the good people of Seattle.