Business Wars

A former high school dropout named Bill Rosenberg has big dreams and a passion for coffee. In 1950, in the small town of Quincy, Massachusetts he’s got a thriving coffee and donut shop called Dunkin Donuts. In front of the store he proudly puts up a huge sign that reads, World’s Finest Coffee. But in San Francisco, an enterprising immigrant from the Netherlands named Alfred Peet thinks he sells the world’s finest coffee. When two young guys from Seattle get a taste of it, coffee will never be the same.

While Dunkin Donuts expands and flourishes, Howard Schultz is bored. But then the 28-year-old New Yorker gets wind of a Seattle company with just four stores that’s selling more coffee makers than Macy’s. He’s got to know why. So he heads to Seattle to check out this company that calls itself Starbucks Coffee and Tea. What he finds there is a revelation but while he’s being seduced by the aroma and taste of delicious coffee, Dunkin Donuts popularity is soaring thanks to a beleaguered baker.

Howard Schultz has found his mission. He’s burning to turn Starbucks into an espresso bar business, but he can’t convince Starbucks owners to get onboard. Back in the Northeast, Bill Rosenberg is frustrated too. His son, who’s now Dunkin Donut’s CEO, has ideas that seem sure to wreck the company. Both Schultz and Rosenberg, 3,000 miles apart, are looking for ways to assert control. But soon, Starbucks and Dunkin will come head to head with their biggest challenge: each other.

Howard Schultz can hardly believe the mess his company is in, with sales in free fall. To pull out of it, he’ll need to make a radical move. Yet no matter what he does, Starbucks’ problems only get worse. And Dunkin Donuts is in expansion mode, looking to capitalize on the coffee giant’s missteps. Then, a blind taste test tips the scales in an unexpected direction.

The Great Recession doesn’t play favorites and both Starbucks and Dunkin are hit hard. As more customers make coffee at home, Dunkin leans into its reputation as the “everyman’s brand” to lure them back. Meanwhile, Starbucks looks to cash in on an untapped beverage market with a risky move. And they both have to contend with public outcry after major PR blunders.

Dunkin and Starbucks are going full on 21st century, doing all they can to top each other with new concept stores, vast emporiums, vegan food options, oat milk lattes and “high- velocity innovations.” But the real world keeps intruding and they can’t get away from it. For all their success, can they truly command their futures?

There’s no doubt that Starbucks and Dunkin Donuts have created empires throughout the U.S. and internationally. Starbucks has more than 15,000 locations in the U.S. alone, and Dunkin Donuts is now in 43 countries. But there could be yet ANOTHER brewing business that’s raring to make a dent in Starbucks’ customer base. Hailing from China, that new competitor is Luckin Coffee, marketing itself as the convenient gourmet coffee choice, with a lower price point than Starbucks. Sounds a bit like Dunkin’s strategy, right? And in May of 2019, the Chinese coffee giant made its initial public offering in New York. So could Luckin be on its way to the U.S.? And if so, should Starbucks prepare for its next “Business War” with Luckin here on American soil? For some answers, our host David Brown chats with market strategist Judy Ganes. Ganes is president of J Ganes Consulting where she focuses on products such as sugar, cocoa, and of course, coffee.