Coffee Brand Wars: What Makes Dunkin’ and Starbucks Different

Starbucks and Dunkin’ are the two biggest names in the coffee industry in America. With Dunkin’ having 8,500 locations in the United States and Starbucks having over 15,800 locations nationwide, you’d be hard pressed to find someone who hasn’t heard of these coffee giants. While they offer similar products, much about the two brands feels very different. The reason for this? Branding.

Branding

Let’s start by comparing the logos for Dunkin’ and Starbucks. 

The logo for Dunkin’ contains bright, playful colors and the brand’s name in bold lettering, but this was not originally the case. The first logo of the brand was brown. Over the years, the logo has seen several changes, integrating candy pink in 1960. Although there have been minor alterations since, including orange coloring added in 1976, the logo has stayed largely the same. 

The current logo’s use of bright orange and pink is friendly and reminiscent of the brand’s expertise in all things donuts and sprinkles, appealing to the masses and giving an overall approachable feel to the brand. Even the slogan for Dunkin’ — “America runs on Dunkin’” — portrays inclusivity, as all of America is incorporated. 

Starbucks, on the other hand, is known for its siren lady with two tails. This thoughtful decision was inspired by “Moby Dick.” Starbucks’ creative team felt the siren lady mentioned in the book called out to them, as sirens do. The fact that Starbucks does not include its name in its own logo implies that we already know this brand just by the sight of the siren lady, and that is, in fact, true. The logo was originally brown, with a switch to the iconic green and white in 1987, along with a few other modernizing adjustments to the siren's hair and aesthetic since then. 

Whether or not the green was intended to connote wealth, the clean, modern appearance of the logo has become a symbol of sophistication. This is also reflected in the brand’s pricing, which further differentiates it from Dunkin’ Donuts.

Pricing and Products

It’s likely not groundbreaking information to you that Starbucks is more expensive than Dunkin’. 

While it is a matter of taste as to who makes the “better” tasting coffee or products, Starbucks has designed its menu around its ideal consumer and the image it wants to create with its branding, thus, prices reflect a slightly more luxurious lifestyle. 

The products from both coffee shops are served in branded cups, of course. While Starbucks’ cups showcase the iconic siren lady, the cups for Dunkin’ are bright pink and orange with the brand’s name in round, plump lettering like the pastries they’re known for. 

A Tailored Atmosphere For Different Types of Consumers

The environment inside each brand differs, as well. Starbucks locations tend to play light, soft music, offer plenty of seating options and have free Wi-Fi. Many workers work remotely from within these coffee shops. The brand locations also contain shelves full of paraphernalia, including travel mugs, cups and bags of ground coffee. Starbucks also famously sells “Been There Series” mugs, which have the names of cities in which each Starbucks is located. Loyal customers can purchase one for each destination. 

In comparison, Dunkin’ locations tend to be smaller and have fewer seating options. The decor matches the logo with bright orange and pink features, resembling a fast-food restaurant. While Dunkin’ sells some merchandise, its offerings are not as extensive as those at Starbucks, and tend to be more playful — like fluffy slippers — than sophisticated. 

Overall, Starbucks’ messaging is polished and exclusive, while Dunkin’s’ is lighthearted and fun. The messaging is not only for the consumer, however. The elevated culture of Starbucks versus the laid-back, welcoming environment of a Dunkin’ can be seen in the franchising models (or lack thereof) for each brand.

Untouchable Vs. Accessible Ownership

While Dunkin’ is a franchise, Starbucks stores in the U.S. are nearly all corporate owned. 

Unless you live abroad, franchising with Starbucks is likely not an option. While the brand offers licensing to business owners who are in a desirable area, this opportunity is not accessible to many. To become a licensed Starbucks location, you need to already be situated in a location that Starbucks finds attractive while also supplying all of the resources needed to own a Starbucks yourself. The investment, according to VettedBiz, is estimated to be around $1 million. This, of course, is not a viable option for most people who are looking to start a business for the first time, or even for many existing business owners. 

Dunkin’, on the other hand, prides itself on affordable franchise opportunities. To open a non-traditional franchise model, the initial investment range is $121,400-$1,310,500, whereas a traditional style location would require an initial investment of $526,900-$1,809,500. Not only is this a lot less expensive than licensing a location with Starbucks, but the support offered by the brand is more extensive. The accessibility of franchising with Dunkin’ is further evident in the transparency of how the franchising process works on the brand’s website. 

The Verdict? Branding Makes a Huge Impact

While both Dunkin’ and Starbucks sell similar products, the environment and reputation of the brands is completely different. This is all down to the messaging that has been sent through their logos, store decor and product pricing. That is not to say that one is better than the other, as they have both set out to achieve something distinct and found success in their respective markets: Starbucks with consumers seeking a sophisticated product and Dunkin’ consumers seeking an accessible, fun treat. Which coffee giant do you prefer?