You might not think, initially, that Dunkin’ Donuts (or just Dunkin’, as the company prefers these days) and Starbucks would be fighting for the same customers. Boston’s Dunkin’ Donuts was founded in 1950. The first Starbucks opened in 1971 at the Pike Place Market in Seattle. That famously ubiquituous coffee chain is known as the first of the “second wave coffee shops,” which shot to fame in the 1990’s on the back of idea that this was better coffee of a higher quality than was available in the existing U.S. chains… like Dunkin’ Donuts.
The thing is, lots of diehard working class fans already thought Dunkin’ Donuts had great coffee. And in 2003, the company began to set its sights on Starbucks, introducing lattes and frappucinos. The company eventually rebranded itself as officially just Dunkin’, with a stated intent on moving the focus from baked goods to beverages. These days, according to a Harvard analysis, the two companies represent nearly two-thirds of the U.S. coffee market. Dunkin’ has 9,200 locations in the U.S.; Starbucks has so many stores (28, 218) it’s long been a tired cultural joke. Let’s see what Comparably’s employee-submitted data can tell us about how it is to work for the always forward-thinking Starbucks and the more old school Dunkin’.
OVERALL CULTURE
Right off of the bat, Starbucks takes the prize for best overall company culture, leaving a sixteen-point gap between itself and Dunkin’. All those years putting their face forward as a modern, progressive company does add up to something, it seems.
“The culture is pretty much the best ever,” says one satisfied Starbucks employee. “All in all, working here had been such a great experience and I wouldn’t trade it for the world,” says another. More specifically, another writes, “They promote you being an advocate for yourself. So, while they like people to become leaders, they have the workers employed in such a way that they don’t necessarily pressure you to take on a role that you are uncomfortable with.” One employee complains about “their sales of the sugar drinks. Less and less get coffee. We are beginning to act like a fast food franchise and getting away from the coffee shop feel.”
Dunkin’ employees call the chain “a small town pitstop where everyone goes on the regular, and you feel comfortable” and write that the job offers “great customers and a great working environment. They work with my hours.” However, others are less pleased: One writes, “It’s okay I just feel bad for the others that I work with who are constantly working and have families.” Another tells us, “It seems that no one really goes that extra mile.”
CEO
Starbucks’ CEO Kevin Johnson takes the win from Dunkin’s David Hoffman by 12 percentage points.
One Starbucks employee writes, “I’m excited about Kevin. I think he brings a sense of responsibility and process that is a refreshing balance to our previous ‘innovate at any cost’ mentality.” Of general chain leadership, another employee writes, “I like that they are open to listen to you and your problems you have, but not much ever changes even though they listen.” Another writes, “They are helpful and nurturing. We are human so they do mess up but overall they are pretty awesome.”
A Dunkin’ employee tells us, “The leadership team under me is absolutely amazing and hard working. The leadership above me is unfortunately disappointing.” Another writes that company leaders “need to treat their employees better when it comes to life outside work.” A third Dunkin’ employee has a more forgiving perspective: “I like how no matter how high up they are if they show up at the store and they see you very busy they jump right in and help. They don’t just stand there and watch you struggle.”
COMPENSATION
In what is beginning to look like a rout, Starbucks wins for Compensation by a fairly staggering 26 points.
Employees at Starbucks say their pay is “perfect for a college student or recent graduate.” By the same token, another writes that “hourly pay could be a little higher.” A third says, “It’s an honest job where you will be treated fairly and work for what you earn.” Moving into slightly more critical territory, a Starbucks worker writes, “The pay at Starbucks needs to be at least $15/hour for regular baristas, and the company needs more baristas on the floor at all times.” Another says, “Hourly employee wage is not competitive if compared to local coffee restaurants.”
“My hours are continually cut and the pay is too low for the responsibility that’s required,” writes a Dunkin’ employee. “It’s way too stressful and there’s way too much to do for the amount I get paid, which is minimum wage,” writes another. A third complains, “They do not layoff workers. What they do is cut your hours down to 3 to 6 hours a week, which forces you to look for another job so that you can pay your bills. Very sad when you have a family and rent to pay.”
PERKS & BENEFITS
Again, Starbucks beats Dunkin’ by a huge number, taking the Perks & Benefits category by 27% over competitor Dunkin’.
Starbucks offers “Health insurance, a 401K program, free college tuition, a Starbucks stock program, adoption fee payments, a match for donations to charitable organizations.” Another adds,“They put together benefits that work well for employees providing great value while costing the company little money, such as a free pound of beans or package of tea for employees each week or free food items every shift.”
One employee for Dunkin’ says the company offers “nothing but flexible schedules”and “health insurance that is expensive.” A second writes that they “wish Medical was more reasonable, especially for family members.” Another says the company offers “sometimes a summer BBQ and always a Xmas get together.”
GENDER
For the Gender score, which is based on how women feel about their treatment by the company, Starbucks again takes an easy win, this time by 19 points.
One Dunkin’ employee writes that she “gets paid less as a woman than my male counterparts.”
DIVERSITY
What did we say about a rout? Starbucks wins every category in this Culture Showdown, ending with a 14 point victory over Dunkin’ for Diversity.
“I feel that Starbucks is inclusive and tolerable of all identites,” writes a Starbucks worker. Another says the company is “Open to all cultures, religions, race/ethnicity, LGBTQ.” Finally, a third writes, “We are a diverse team, and we are trying to be even more welcoming every day.”
One Dunkin’ employee says the company features“a lot” of diversity. Another praises “the diversity of my coworkers.”
