COFFEE TRENDS – SINKING TO A NEW LOW

Dunkin’ Donuts said it would offer small lattes and egg and cheese sandwiches for 99 cents each at participating stores beginning today. The company is calling it “America’s Latte Break,” the promotion (which runs through November 11th) features small lattes for 99 cents on weekdays between 2 p.m. and 5 p.m. The egg and cheese sandwiches will be priced at 99 cents all day with the purchase of a medium or large hot coffee. , Dunkin' said. The chain’s lattes generally retail for between $2.59 and $2.79, depending on the size, and the egg sandwiches cost around $2. In addition to its latte promotion, Dunkin' Donuts said it was launching new advertising next month.

While I generally don’t believe there is much overlap between Dunkin’ Donuts and Starbucks, this is clearly going to eat into the marginal customer. More importantly, it will continue to put pressure on MCD’s rollout of its coffee program.