Key facts
- Dunkin' uses limited-edition merchandise to build brand loyalty.
- Dunkin's marketing targets viral moments, Gen Z appeal, and regional pride.
- Dunkin' merchandise resells for high prices on secondary markets.
- Dunkin' has a higher consumer spending growth rate than Starbucks.
- Inspire Brands, Dunkin's parent company, has confidentially filed for an IPO.
Dunkin' has cultivated strong brand loyalty through its merchandise strategy, featuring limited-edition items like tote bags, tracksuits, and wedding ring boxes. This playful and ironic marketing resonates with Gen Z and consumers from the Northeastern U.S., Dunkin's origin. The brand leverages viral trends on platforms like TikTok and collaborates with influencers. In contrast, Starbucks is positioned as a more premium coffee shop without a similar merchandise-driven fan culture. Despite Starbucks' larger consumer spending base, Dunkin' shows a higher growth rate in consumer spending. Limited-edition Dunkin' items often sell out and are resold at significantly higher prices on secondary markets. Dunkin's parent company, Inspire Brands, has confidentially filed for an initial public offering.