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As the Dunkin' Donuts road show for its upcoming IPO kicks off, the company showed off new Dunkin’-branded single-portion K-cups at a meeting held today at New York’s St. Regis Hotel.
In February, Dunkin’ announced a deal with Green Mountain’s Keurig brewers to sell packs of 14 K-Cup servings at its coffee shops starting this summer... Dunkin’ makes a 40-percent profit margin from selling traditional coffee and will make far less from K-cups, said former Dunkin’ franchisee Irwin Barkan, author of "Dunk’d," a tell-all about the franchise business.
Dunkin’ CEO Nigel Travis told the audience of 400 to 500 people yesterday that investment bank JPMorgan conducted a study to address concerns about cannibalization. "We showed remarkably little cannibalization from selling K-Cups in our stores," Nigel said, according to Barkan, who was there. [Reported by Josh Kosman in the NY Post]