Sunday, February 08, 2009

Starbucks, Dunkin’ Donuts, McDonald’s: Coffee Rivals Fight Breakfast War

By Katherine Glover

In an economy that increasingly favors cheap deals, Starbucks has been flailing while its competitors take advantage. McDonald’s is expanding its McCafe into more and more markets, while Dunkin’ Donuts is running various promotions as well as investing in advertising and new stores. Both companies are aggressively targeting Starbucks customers.

But Starbucks CEO Howard Schultz this week announced an offensive play: the company is launching its own value meals. The details are still vague — Schultz said only that there will be “several breakfast pairings” at “attractive” prices.

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