Dunkin' Donuts enters Starbucks' territory

Room for competition
Starbucks, which has about 45 outlets in the Cleveland area, isn't worried. Spokesman Alan Hilowitz said there's plenty of room for competition. Nationwide, Starbucks has 6,668 locations to more than 4,400 for Dunkin' Donuts.

Others aren't so sure about the competitive environment.

Joan Pistone, co-owner of a small restaurant and catering service at the Shaker Square boutique shopping area, said chains like Dunkin' Donuts and Starbucks have the money to overwhelm family run operations.

The chains have the money to "to make it easier and more efficient for people to stop there," she said.

Arlene Spiegel, a restaurant-industry consultant in New York City, thinks Cleveland would be a good fit for Dunkin' Donuts.

"They are very user friendly and very democratic. They are very democratic in that they do not look for that 'upscale' look," she said.

That dressed-down Dunkin' Donuts decor will never rival the Internet-surfing environment that Starbucks offers, Spiegel said. Dunkin Donuts "is not cozy, it's not embracing. It's not inviting," she said.

But it does have its signature coffee made with arabica beans, known for making smooth-tasting coffee. As for the doughnuts at 250 calories or 300 calories each, "You can fit them in on occasion," said Mary Beth Kavanagh, a nutrition instructor at Case Western Reserve University.

Men's Fitness magazine ranked Cleveland as the ninth-fattest city in the nation last year based on factors including government obesity and nutrition studies. Kavanagh said the city probably doesn't rank much better or worse than elsewhere.

"All across the country, more and more people are overweight. We're right there with the rest of the states," she said.

The newest Dunkin' Donuts stores in Cleveland do 45 percent of their business in drinks and 55 percent in food, but expect those ratios to be reversed with time. Established stores make 60 percent or more of their money in drinks, and Dunkin' Donuts has upped the ante with lattes and specialty items like iced coffee with a shot of espresso.

Patel, who does most of his business before 10:30 a.m., is counting on sandwiches to help his midday business and Baskin-Robbins ice cream to draw customers later in the day, especially during summertime.

Patel deflects a question about bulging waist lines and instead weighs in with a pitch on jobs. "Opening up all these donut locations is going to bring in a ton of jobs," said Patel, who has about 25 employees at his new store.

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