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Jindal School of Hotel Management

Subject: Academic Writing Submitted to: Mr. Luke Frank Submitted on: 08/12/2009 Project: Café Chain s Comparison Introduction History Comparison of facts and figures Word Count: - 656

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CHAIN v/s CHAINS
Introduction
Today in this fast and busy world every person needs refreshment so, There came a new idea of bringing 5 star Cafe s to entertain the people and to provide them a wide range of tea s and coffee s,, which proved to be a good source of bringing people together and serving the real taste of the items after a long stressful day. We know that some cafes like Starbucks, Caribou and Dunkin' Donuts stands apart from the rest of the Café chains in the world, and in this discussion I am going to compare and contrast these three Successful chains of the world.

History
The original Starbucks was opened in Pike Place Market in Seattle, Washington, in 1971 by three partners: Jerry Baldwin, Zev Siegel, and Gordon Bowker. During their first year of operation, they purchased green coffee beans from Peet's, and then began buying directly from growers. Entrepreneur Howard Schultz joined the company in 1982 as Director of Retail Operations and Marketing and advised that the company should sell coffee and espresso drinks as well as beans. The owners rejected this idea. In 1987, they sold the Starbucks chain to Schultz's Il Giornale, which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year. About Caribou Coffee s in 1990, on a trip to Denali National Park in Alaska, Caribou Coffee was imagined by newlyweds John and Kim Puckett. The couple raised money to start the first Caribou Coffee shop in Edina, Minnesota, a suburb of Minneapolis, in 1992. Since opening, the chain has expanded to 415 locations in 16 states and the District of Columbia, making it the second-largest operator of non-franchised coffeehouses in the United States. Dunkin' Donuts is an international donut and coffee retailer founded in 1950 in Quincy, Massachusetts by William Rosenberg. It is now headquartered in Canton, Massachusetts. A Dunkin Donuts / Baskin-Robbins co-brand in New Castle and Pennsylvania. One of two Dunkin Donuts locations in New Castle, this store was a former Mister Donut converted to Dunkin' in 1994 and completely rebuilt in 2003 with the addition of Baskin-Robbins and surprisingly making money.

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Comparison of Facts and Figures
STARBUCKS
Industry

CARIBOUE Restaurants Retail coffee and tea Retail beverages Entertainment Whole bean coffee Boxed tea Made-to-order beverages Bottled beverages Baked goods Merchandise Frappuccino beverages Smoothies Alcoholic Beverages Coffee US$10.383 billion (2008) US$503.9 million (2008) US$315.5 million (2008) US$5.673 billion (2008) US$2.491 billion (2008) 176,000 (2008)
Services Revenue Net income Employees

DUNKIN' DONUTS
Industry Fast food Doughnuts ‡ Coffee ‡ Bagels ‡ Muffins ‡ Breakfast sandwiches $5.5 billion USD (2008) Coffee/snacks

Coffee $236.22 million USD (2006) $9.05 million USD (2006) 6,000+ employees

Products

Products

Revenue

Services

Services Revenue Operating income Net income Total assets Total equity Employees

To compare these café chains I will now compare the Facts and Figures listed above, each of the Coffee chains have two things in common i.e. they originated from America and all of them serve baked products, the matter of fact is that Americans are well known for coffee consumption. Despite of these two running their own coffee chains only Starbucks has made a good profit and is popular internationally. Further, None of these Chains fall in the same industry they vary from each other. E.g. Dunkin Donuts is categorized in fast food industry while both Starbucks and Cariboue are every near to each other. Here Starbucks deals with only heavy and light beverages and music where as Cariboue does sell coffee apart from that it also deals with branded clothes, surprisingly Dunkin Donut deals with coffee and Donuts. Comparing their revenue it can be figured that Starbucks earns double the profit of D &D i.e. US$10.383 billion (08) and D¶&D earns $5.5 billion USD (08). While Cariboue Earns profit of $236.22 million USD (06), which is comparatively less than D¶&D.

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