COFFEE BATTLE BREWS IN CITY; Dunkin' Donuts aims to tap Starbucks' upscale customers by opening shops near offices.(News)

Byline: ELISABETH BUTLER

dunkin' donuts, a fast-food chain that has long appealed to construction workers and taxi drivers, is trying to put more of its signature pink and white coffee cups into the manicured hands of office workers.

As part of the expansion plan it launched last year, Dunkin' Donuts aims to challenge Starbucks' white-collar popularity by opening more stores in Manhattan's office buildings and near tourist attractions such as Rockefeller Center and Times Square. To help secure some of those coveted sites, Dunkin' Donuts has introduced a more upscale store model, complete with granite countertops and wallpaper sporting its new logo. Starbucks, the city's biggest coffee chain, is brewing its own expansion plan to fight back.

"Our thing is getting into more high-end buildings,'' says Steve Menexas, one of the city's dozen Dunkin' Donuts franchisees. "We want people to see that we're not just about cheap coffee,'' he says.

Though Dunkin' Donuts' corporate officers did not return calls for comment, an insider familiar with the company's managerial decisions says that executives don't want to turn the doughnut emporium into Starbucks. Rather, they are trying to freshen up the stores to attract a wider variety of customers without irking their working-class devotees.

However, the company did start offering holiday drinks just like Starbucks'.

Dunkin' Donuts shops began multiplying in New York a couple of years ago, as the company made the city a priority in its growth strategy. Today, Manhattan has 90 stores, up from about 30 four years ago. The company aims to open at least 100 more stores within the next few years.