As one of America’s biggest specialty beverage merchants, Dunkin’ Donuts has been on the defensive in recent years as other restaurants have tried to steal some of its thunder. McDonald’s (NYSE: MCD) launched lower priced premium coffees and smoothies via its McCafe menu, Starbucks (NASDAQ: SBUX
) redefined instant coffee with its Via line and even Burger King is trying to get in on the act by upgrading its java to the Seattle’s Best brand.
But Dunkin’ Donuts has been firing back, by focusing on a revamped breakfast menu. The move is meant not only to keep its coffee drinkers from defecting in search of snacks, but to actually steal some of the morning meal business that companies like McDonald’s currently dominate.
Dunkin’ Donuts’ latest creation? A delicious pairing of portable pancake-and-sausage snacks introduced last week as a perfect breakfast on the go.
The new Pancake Bites, billed by Dunkin’ Donuts as “a poppable breakfast snack that makes it easy for anyone to savor the delicious pairing of pancakes and sausages any time of day,” are bite-sized sausage links wrapped in a maple-flavored pancake. Three of the bites will retail for $1.59 at participating locations, and a serving of six Pancake Bites will cost an even $3.00. But if you’re interested, act fast — Pancake Bites are available for a limited time as part of an experiment to gauge the market.
On the heels of some innovative new snacks in the last year like bagel twists and healthy flatbread sandwiches, Dunkin’ Donuts is clearly not content with being labeled a coffee and sweets shop. It is expanding its menu to cash in on food sales and not rely on what is becoming an increasingly crowded market for specialty beverage sales.
That plan has also included moving beyond sales within Dunkin’ Donuts shops themselves. In recent years it has dramatically expanded its retail presence to include nearly $150 million in coffee sales outside its own storefronts, including partnerships with over 40,000 grocery stores across America.
Whether the Pancake Bites stick as a permanent menu item or not, one thing is for certain – Dunkin’ Donuts is about much more than donuts or the coffee they get dunked in. The restaurant is determined to branch out its menu and find growth in retail sales rather than be boxed in.
Jeff Reeves is editor of InvestorPlace.com. As of this writing, he did not own a position in any of the stocks named here. Follow him on Twitter at http://twitter.com/JeffReevesIP.
