News

Dunkin' Donuts franchisees won't increase coffee prices

October 12, 2010

The price of coffee beans have gone up, but some Dunkin' Donuts franchisees have not changed their prices.

According to a survey conducted by Dunkin' Donuts Independent Franchise Owners Group, 95 percent of the company's franchisees said they haven’t raised prices for coffee at their stores.

All Dunkin' Donuts stores are owned and operated by independent franchisees who have the right to set their own prices for beverages and other products.

"Even as Smucker's is increasing the cost of a 12-ounce bag of coffee, the majority of Dunkin' Donuts franchise owners say they would rather absorb the increases than charge their customers more for a full pound," said Jim Coen, president of the Dunkin' Donuts Independent Franchise Owners.

J.M. Smucker Company, which sells Dunkin' Donuts coffee, has raised prices by 9 percent.

Dunkin' Brands and Smucker's agreed in 2007 to sell 12 ounce bags of Dunkin' Donuts coffee in groceries and other retail stores. However, Smucker's uses different packaging and a different product from the coffee brewed in Dunkin' Donuts stores, making it easier for customers to be confused.

In light of the recent increases in commodity prices, other retail coffee companies such as Starbucks, Peet's and Green Mountain Roasters have all raised prices in the past month.

With the holiday season quickly approaching, many franchisees have said they will lower prices on purchases for two or more 1-pound bags of Dunkin’s ground coffee or whole beans.

"Many people enjoy giving the gift of Dunkin' Donuts coffee during the holidays and our franchise owners are responding with special pricing even as coffee costs are going up," Coen said. "This is one of the reasons why Dunkin' Donuts has been such a successful business for 60 years."