Will Panera's Coffee Stunt Make This a Lost Summer for Dunkin' and Starbucks?
There's a price war on java this summer, and that isn't good news if you're Starbucks (NASDAQ: SBUX), Dunkin' Brands Group (NASDAQ: DNKN), or any other chain that counts on coffee to drum up sales in the morning. The culprit here is Panera Bread, the popular bakery chain that may have fallen off of most investing radars after being acquired in 2017 by privately held JAB Holding.
Panera introduced a beverage subscription service earlier this year, charging $8.99 a month for unlimited drip hot coffee, hot tea, and iced coffee drinks. A subscriber can have a free beverage every two hours, along with free in-store refills. The timing was lousy for the MyPanera+ Coffee subscription launch. It rolled out in late February, just as the country was starting to hunker down for the pandemic crisis. The flow of morning commuters and classroom carpools never materialized. In a brazen move, Panera decided two weeks ago to make the platform free through Sept. 7. There is no additional purchase required, so for the next two months folks know that they are a painless app signup away from unlimited free coffee. If you're a Starbucks or Dunkin' Brands investor and you're not nervous, you may want to get caffeinated and wake up to how this summer is going to play out.
Image source: Getty Images.
Source Fool.com
