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The Street
The Street
Business
Colette Bennett

Dunkin' Has New Drinks, a New Donut (Watch Out, Starbucks)

As the weather warms across the country, coffee and tea drinkers alike are ready to put aside their heavier drinks and go for lighter options.

While there are some customers who still opt for the sugar bomb of a good Frappuccino over a lower calorie drink, a lot of them are thinking about what they're going to look like in their swimsuits already too.

Fast-food chains have responded to the call of these pollen-dusted days in kind. Panera launched Charged Lemonades recently along with its Unlimited Sip Club, encouraging regulars to drink eye-bulging amounts of caffeine more often.

And while Starbucks (SBUX) hasn't announced any big updates in it's "not coffee" category yet, its Refreshers line has been a top pick for the season for many years.

Dunkin' has to hop on the horse to stay competitive, naturally. But its also savvy enough to know that its customers probably want both indulgent and calorie-conscious options. 

So its new collection smartly introduces some of both, factoring in bright fruit flavors as well as some of the intense dessert-in-a-cup coffee it's famous for.

What's New on the Dunkin' Menu?

Dunkin

There are a total of six new options on the spring menu at Dunkin', with four new drinks to choose from and two new meals.

Dunkin' isn't even afraid to call its non-coffee drinks Refreshers to beckon to the Starbucks customer, which is a pretty fearless move. For spring its introducing a Mango Pineapple version, which you can choose to combine with coconut milk, lemonade, or green tea. DD Perks members can try a medium for free.

If you think that sounds nice and all but really need coffee to function, two new iced coffee flavors and one latte flavor are available for you to try. The Cake Batter Signature Latte is espresso combined with cake batter flavor and topped with whipped cream, mocha drizzle, and rainbow sprinkles, essentially making it possible for you to take dessert to go.

The first of the iced coffee options is Butter Pecan, which is making a menu comeback due to customer requests. You can also ask Dunkin' to add the flavor to hot coffee and frozen drinks if you really like it. The second is Sunrise Batch, which is a medium roast coffee with cocoa and roast nut notes. 

For the food additions, Dunkin' went with an unusual new pick: Cornbread. You can get the flavor in regular donuts and donut hole sizes, so if you love this comfort food this one is for you.

Lastly, Dunkin' has a Tomato Pesto Grilled Cheese on the menu, which has a nut-free pesto, a thoughtful touch for those with nut allergies. Its served on sourdough bread with white cheddar.

Is Starbucks Losing Customers to Dunkin'?

Since its 2020 acquisition by Inspire Brands, Dunkin's business has taken a more aggressive stance to gain the interest of the millennial customer. 

While Starbucks still rakes in much more revenue than Dunkin' does, the latter made a big jump in 2016, moving from the millions to the billions. Its remained there ever since.

Starbucks earned $29.6 billion in 2021, a 23.57% increase from the previous year, so it's clear the chain still has what it takes to keep its customer base growing.

Dunkin' earned $1.25 billion the same year, which obviously gives it quite the gap to cross. But it also announced in 2020 that it plans to invest $60 million in "NextGen" expansion, which included upgrading all its brewing equipment and overhauling the overall appearance of all locations in favor of a cleaner, modern look.

So while Dunkin' may not be stealing Starbucks customers away entirely, it seems more likely than ever that some fans of drive-thru café options are going to both.

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