Dunkin's new 16-ounce hot latte,served will cost $3.59 with tax while the competing drink at Starbucks costs $4.19.

Lucas Laursen
Updated October 24,2018

The coffee chain formerly known as Dunkin' Donuts isbeefing up its espresso offerings and lowering some pricesin a challenge to the coffee chain still known asStarbucks sbux.

While Dunkin'dnknhas offered espresso-based drinks for years,andchased Starbucks into mobile order-ahead payments in 2016,this year it has accelerated its new offerings,ranging fromdonut friestogluten-free itemstobeer.Late last month it announced an even bigger change,dropping "Donuts" from its name.It has also followed other trends such as serving cold-brew coffee and selling branded coffee via grocery stores.

Dunkin'reported $860 million in saleslast year while Starbucks reported $22 billion.While both are international chains,Dunkin' operates on a mainly franchise model,so it has a different cost structure.Dunkin' executives recently 金博宝网址开户traveled to Europe to test new espresso machines and announced that the company will invest $100 million in installing them along with other technology and unspecified investments by its franchisees.

The brands target overlapping but slightly different markets: Starbucks provides a somewhat more premium experience while Dunkin' aims to offer a more affordable quality coffee: Dunkin's new 16-ounce hot latte,served will cost $3.59 with tax while the competing drink at Starbucks costs $4.19.Dunkin' will serve the new espresso drinks in orange cups to distinguish them from older drink offerings.

That's probably a good thing because in blind tests,even regular coffee junkiescan barely tell apartthe main commercial offerings.

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