Starbucks’ CEO wants you to stop seeing his brand as an excess while Dunkin’ Donuts enjoys worldwide success in uncertain economic times.

Howard Schultz has had it with the $4 coffee ‘myth’. The Starbucks CEO told investors attending the 18th annual shareholder meeting on Wednesday that he’s aiming to put away the notion that Starbucks’ coffee is an excess in today’s economy.

While he says he’s well aware that many Americans are without jobs and worrying about losing their homes, “We’ve become the poster child for excess. … We are going to dispel this myth about a $4 cup of coffee.”

Schultz didn’t say how he planned to rid customers of such opinions (oh, I don’t know, lowering prices might be a start), but he did say the company will bring back its “treat receipt” incentive program. Customers who present a receipt proving purchase of a coffee in the morning are invited back to the same store in the afternoon to receive a discount on their mid-day pick me up.

A mere 1,200 shareholders showed up for the company’s annual meeting, a significant drop from previous years when Starbucks’ rise seemed meteoric and everyone was buying their stock. US same-store sales dropped 10% in the last quarter and profits saw a dip of 69 percent.

Starbucks has been pulling out all the stops lately to generate business, including introducing a line of instant coffee and breakfast pairings for $3.95. The company is currently in the process of closing 970 stores nationwide in the hopes of saving $500 million in annual costs.
Still, Schultz remains positive. He’s not taking a salary this year and told investors the company’s restructuring actions are gaining ground.

“We are in a position to win,” he said.”We will not only survive but succeed in this environment. … We have the financial strength to endure this period.”

Dunkin’s takes home top spot

On the other side of the coin,Entrepreneur.com is reporting that Dunkin’ Donuts is now the number one retailer of hot and iced regular coffee-by-the-cup beverages in America. It is also now the world’s largest retailer of coffee and baked goods with nearly 8,000 stores in 30 countries.

With 98 percent brand awareness in United States, many are reporting that the once-flagging chain now seems to be recession proof.

“In today’s economy, Dunkin’ Donuts is fortunate in that the company does have a resistance and a resiliency based on the value that we offer to consumers and indirectly to franchisees,” says Lynette McKee, a certified franchise executive and vice president of franchising for Dunkin’ Brands Inc.

McKee said she believes the chain’s “innovative menu and evolving concept” provide an embrace for consumers looking for consistency among coffee-selling brands. She said Dunkin’s values franchisees who put the customers’ needs first and want to build lasting relationships with them.

“We enjoy strong market share because we build customer satisfaction and loyalty and keep Dunkin’ Donuts relevant to the taste of its consumers,” McKee said.

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