When you think "Dunkin"... you envision a 64-ounce styrofoam cup and a glazed chocolate donut on a frosty January morning before hockey practice in Canton, Mass. Now, that vision is evolving to include espresso shots, alt-meat breakfast sandwiches, and 'power muffins.' While Dunkin' reported 4th quarter earnings Wednesday, we've noticed that it has been subtly fancy-fying itself:
- Better coffee: Before, coffee meant coffee. Now, Dunkin's investing $60M in fancy new brewing equipment at every cafe. It's updated its espresso cups, changed its espresso recipe, and trained its employees to be 'espresso certified.' It also added iced coffee taps and cold brew.
- More than Donuts: In September 2018, Dunkin' dropped 'Donuts' from its name as part of a rebrand. Last year, Dunkin' started selling Beyond Meat breakfast sandwiches and nitro-brews. Now, it's launching oat-milk lattes nationwide.
- No styrofoam: Dunkin' said it would eliminate its foam cups worldwide by April 2020. And no more double-cupping ice coffees in winter.
Dunkin' doesn't want to alienate its hardcore faithful... So it's been stealthy. Kinda like your college friend who studied abroad in Paris and now refuses dining hall coffee – but more subtle. It's because Dunkin' can rake in more $$$ for premium drinks paired with alt-meat sandwiches. And Wednesday's earnings confirmed that fancification is working:
- Espresso sales surged almost 40%.
- Dunkin' enjoyed its biggest quarterly sales improvement in 6 years.