Back in April 2002 I wrote about a Boston Globe article which researched the potential competition between the ubiquitous New England icon, Dunkin’ Donuts, and the prolific newcomer (in relative terms) Starbucks. The Globe predicted that although Dunkin’ Donuts did 40% of its business in coffee, it had nothing to worry about from Starbucks as each was seeking a different clientele. Dunkin’ Donuts is fast food; Starbucks is leisure and luxury. Not only that, the article mentioned that the strong Starbucks taste may be too much for New Englanders accustomed to a milder coffee. I capped off my summary with a skeptical statement: “Tastes can change.” (original post)

Two years later, the Wall Street Journal reports that Starbucks is achieving growth by opening stores in blue-collar communities and catering to typical Dunkin’ Donuts clientele. Starbucks Coffee is “an affordable luxury” and many in the lower income neighborhoods don’t hesitate to pay $4.00 for a grande Frappuccino. Concurrently, Dunkin’ Donuts is looking at a new line of Italian brews that are still fast and cheap. It’s espresso for the masses. Yup, you can now get cappuccinos and lattes in Dunkin’ Donuts. A shot is 99 cents (Starbucks rings in at $1.45) and they’ve invested in equipment and training to create the drinks quickly but with authentic flavor. Tastes change, indeed, and luxury always has a veneer of good taste.(via Obscure Store)