Dunkin' Donuts
Dunkin' Donuts is an international doughnut and coffee retailer founded in 1950 by William Rosenberg in Quincy, Massachusetts;[1] it is now headquartered in Canton. Despite originally focusing on doughnuts and other baked goods, over half of Dunkin' Donuts business today is in coffee, making it more of a competitor to Starbucks as opposed to traditional competitors Krispy Kreme and Tim Hortons.[3]
Corporate profile
The company has more than 16,000 locations in 56 countries worldwide, which include more than 6,700 Dunkin’ Donuts locations throughout the United States.[4] This figure compares with the 17,009 stores of coffee chain Starbucks, whose baked goods are usually prepared out of shop. Nearly all of Dunkin' Donuts restaurant are franchisee owned and operated.[5] Only 75 franchisees exist west of the Mississippi River, mostly in Arizona, Nevada, New Mexico, and Texas.[6] Within their Northeast home base, however, Dunkin' Donuts is particularly dominant and can be found in many gas stations, supermarkets, mall and airport food courts, and Walmart stores across the region.
Dunkin' Donuts, along with Baskin-Robbins is co-owned by Dunkin' Brands Inc. (previously known as Allied Domecq Quick Service Restaurants, when it was a part of Allied Domecq). Dunkin' Brands used to own the Togo's chain, but sold this in late 2007 to a private equity firm. Dunkin' Brands was owned by French beverage company, Pernod Ricard S.A. after it purchased Allied Domecq. They reached an agreement in December 2005 to sell the brand to a consortium of three private equity firms, Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners.
In the United States, Dunkin' Donuts is sometimes paired with Baskin-Robbins ice cream shops. While such locations usually have two counters set up for each chain (much like the Wendy's/Tim Hortons co-branded locations), depending on business that day both products can be bought at the same counter (usually the Dunkin' counter), much like the Yum! Brands stores.
The company's largest competitors include Krispy Kreme donuts and Starbucks, as well as small locally owned donut shops. In Canada and parts of the northern United States, Tim Hortons is a major competitor. Mister Donut had been its largest competitor in the United States before the company was bought by Dunkin' Donuts' parent company. The Mister Donut stores were rebranded as Dunkin' Donuts. Dunkin still controls the trademark rights to the Mister Donut trademark thru various new and amended older trademark registrations with the USPTO.
In 2005, Dunkin’ Donuts named three-time James Beard Foundation Award nominee Stan Frankenthaler as its first Executive Chef / Director of Culinary Development. [7]
On December 10, 2008, Nigel Travis was appointed Chief Executive Officer of Dunkin’ Brands. He also assumed the role of Dunkin’ Donuts President at the end of 2009.[8]
In 2008, Dunkin' Donuts opened its first "green" store, in St. Petersburg, Florida. The restaurant is Leadership in Energy and Environmental Design (LEED) certified and includes programs like worm casting, water-efficient plumbing fixtures, and the usage of well water rather than potable water for all irrigation. [9]
In 2010, Dunkin' Donuts' global system-wide sales were $6 billion.[10]
In 2011, Dunkin' Donuts earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for the fifth year in a row.[11]
May 4, 2011, Dunkin' Brands initiates $400 million IPO.[12]
Products
Dunkin' Donuts has more than 1,000 donut varieties along with other products.[13]
Dietary concerns
In August 2007, Dunkin' Donuts announced plans to greatly reduce trans fats from its menu items by switching to a blend of palm, soybean, and cottonseed oils.[17] In addition to 400 U.S. stores that took part in a four-month blind test, the low trans fat menu is available nationwide since October 18, 2007. International locations are expected to begin using the new oil within the next few years.[18]
Dunkin’ Donuts has launched DDSMART, a healthy new menu. The new items are reduced in calories, fat, saturated fat, sugar or sodium by at least 25 percent.
Advertising
Dunkin' Donuts is well-known for their advertising which have become popular culture references, especially in their home region of the northeastern United States. As well as being featured in many films, the company has a close relationship with major sports teams, such as the Boston Red Sox and the New England Patriots, and makes new commercials at the start of each team's season for promotions. Dunkin’ Donuts also sponsors many other professional sports teams, including the Dallas Cowboys, New York Yankees, New York Mets, Tampa Bay Rays and others.
Dunkin' Donuts's slogan is "America Runs On Dunkin'," despite the fact that most of its stores are concentrated on the east coast, with only one west-coast location (Portland, Oregon).[19] In March 2009, the company unveiled an alternate slogan, "You 'Kin Do It!", and launched a $100+ million ad campaign to promote it.[20] The campaign, slated to run through 2009, includes radio, print and outdoor advertising, in addition to in-store point-of-purchase, special events, and sports marketing.[21] Online marketing, often leveraging the Boston Red Sox and other New England icons, is also a significant campaign component.[22]
The original Dunkin' Donuts slogan was Sounds Good, Tastes Even Better.
Commercials
- Dunkin' Donuts' "It's Worth the Trip" campaign, starring sleepy-eyed "Fred the Baker" and featuring the catchphrase "Time to make the donuts", won honors from the Television Bureau of Advertising as one of the five best commercials of the 1980s. Fred the Baker was played by actor Michael Vale for over 15 years until his retirement in 1997.
- Since Dunkin' Donuts changed their slogan in 2006 to "America Runs on Dunkin'," They Might Be Giants songs have been featured in an ongoing series of advertisements of Dunkin' Donuts new products to boost summer sales. In 2007, a series of Dunkin' Donuts commercials referred to the fictional language Fritalian (sometimes incorrectly spelled Fretalian) which would be a portmanteau of French and Italian: "Is it French? Or is it Italian?" sings a chorus of customers in an unnamed coffee shop with a long menu of non-English terms. "Perhaps Fritalian?" created by Hill, Holliday, Connors, Cosmopulos with the express intent to "poke fun at pretentious Starbucks-style coffee chains, with patrons attempting to order hard-to-pronounce lattes."[23][24] The whole commercial was interpreted as a deliberate mocking of Starbucks.[24][25] The commercials' punchline, "Delicious lattes from Dunkin' Donuts. You order them in English," has been a point of discussion with respect to the fact that lattes, cappuccinos, and espresso are borrowed words from Italian which have no equivalency in English; the commercials, however, refer to the Starbucks ordering language itself, poking fun at words such as grande and venti."[24]
- Further commercials in 2007 more directly mocked Starbucks, with a customer ordering a "Large" and being chastised to use the term "Dieci;" with dieci being Italian for the number 10 while Starbucks' venti is Italian for the number 20.
- In 2007, John Goodman began doing voice over work for Dunkin' Donuts commercials.[26]
- Rachael Ray has starred in commercials for Dunkin Donuts since 2007. In May 2008, Dunkin Donuts removed a commercial from their website featuring Ray wearing a scarf with a black and white paisley floral design, in response to right-wing blogger / columnist Michelle Malkin's claims that the scarf resembled the keffiyeh worn by Yasser Arafat and therefore a sign of support for terrorists.[27] Dunkin Donuts pulled that commercial off the air,[28] leading to more criticism of the company's perceived kowtowing to special interests.[29]
- Since 2005, Joey De Leon started endorsing Dunkin' Donuts Philippines starring in funny commercials.
- In January 2009, Dunkin' Donuts launched its "You Kin' Do It" campaign.[30]
- A radio advertisement in 2010 featured fictional lawyer Bob "The Bulldozer" Phillips in a direct parody of real-life lawyer Jim "The Hammer" Shapiro.
Promotions
In early 2007, Dunkin' Donuts b Score! that featured tear-off game pieces on their coffee cups.
Easy Bake Oven, which is a product of Hasbro, created product recipes based on Dunkin' Donuts products.[31]
In 2007, Dunkin' created a promotional campaign centered around a coffee cup named Joe Dunkin. Videos were created for the Yankees and Mets in which he tried out for the team, the New York football Giants in which he was the kicker, the Jets in which he played a Joe Namath parody named Off Broadway Joe Dunkin, and the Nets in which he played a potential draft pick who performed rap solos about Dunkin products.
In 2008, as a response to Starbucks closing their stores for three hours on February 26, Dunkin' Donuts locations offered a 99 cent latte, cappuccino, and espresso promotion from 1–10 pm.[32]
In 2009 and 2010, there was a campaign for people to "Create Dunkin's Next Donut". In 2009, Jeff Hager of Hoover, Alabama was selected for his glazed sour cream cake donut, topped with chopped Heath Bar, titled "Toffee For Your Coffee". The 2010 winner was Rachel Davis of Sharon, Massachusetts, selected for “Monkey See Monkey Donut,” a bananas foster-filled donut with chocolate icing, topped with Reese's Peanut Butter Cups shavings. Both won a check for $12,000 and their donuts were available in Dunkin’ Donuts locations for a limited time.[33]
In 2010, Dunkin' Donuts launched a campaign called "Caught Cold" starring NBA All-Star spokesman Ray Allen, which awarded game tickets to Boston Celtics fans caught drinking Dunkin' Donuts iced coffee.[34]
In April 2011, Dunkin' Donuts launched a new donut and special cake in honor of the wedding of Prince William and Catherine Middleton in England on April 29, 2011.[35]
Website
In April 2011, Dunkin' Donuts added a feature to their website which allows travelers to find Dunkin' Donuts stores along the routes of their road trips.[36]
Slogans
- Only at Dunkin' Donuts (1950–March 31, 1991)
- The Place for Donuts and Coffee (1950–1964, secondary)
- America's Favorite Donut and Coffee Shoppe (1964–1967, secondary)
- America's Favorite Donut Shoppe (1967–1968, secondary)
- America's Donut Shoppe (1968–1973, secondary)
- America's Dunkin' (1973–1976, secondary)
- Always Dunkin' (1976–1979, secondary)
- It's Worth the Trip (1979–1990, secondary) (1997–1999, primary)
- You Can't Get Better Tasting Coffee (date uncertain)
- You're Dunkin' (1980–1993, secondary)
- You're Still Dunkin' (1993–1997, secondary)
- Just the Thing (2000s)
- America Runs on Dunkin' (since 2007)
Logos
One early logo that Dunkin' Donuts registered with the USPTO was for a drawing and word logo depicting what can be described as a "doughnut man", a figure with a doughnut for a head holding a coffee cup and wearing an apron with the company name emblazoned on it. According to the Trademark Office TESS data base, the logo was first applied for on June 23, 1958 and was registered on May 23, 1961 and put into use on July 1, 1954.[38]
Before that a script version of their name, Dunkin' Donuts was filed on March 31, 1955 and registered on February 2, 1960. It was subsequently cancelled because of Section 8. It was later reinstated, as a trademark upon Section 8 was acceptance on July 3, 2001. The stylized word mark is owned by DD IP Holder LLC.[39]
Criticism
Dunkin' Donuts has come under fire from some of its franchisees for allegedly strong-arming them out of business at large financial losses. Dunkin' Donuts has sued franchise owners 154 times since 2006. Over the same stretch of time, McDonald's was involved in five lawsuits. Subway, a company that has four times the number of locations as Dunkin' Donuts, sued its franchises 12 times. (However, these figures do not include arbitrations, which both Subway and McDonald's use extensively in bringing legal claims against their franchisees.) Franchisees allege that the company's larger business strategy requires multi-unit franchisees who have ample capital and can open numerous stores rapidly to compete with Starbucks.[40]
In May 2010, Dunkin' Donuts corporate was criticized for advertising "Free Iced Coffee Day" on its national Facebook page, which only took place in 13 cities.[41] Because of the limited scope of the promotion, many customers became dissatisfied with the lack of free iced coffee and vented their anger on the Dunkin' Donuts Facebook page.[42]
Global locations
- Planned expansions
- United States Dunkin' Donuts is planning to expand its number of stores to 15,000 by 2020.[44]
- Republic of China (Taiwan)
DD plans to open 100 new stores in Taiwan over the next 10 years.
- Ukraine After reopening in Russia, the company expects to open up in Ukraine.[43]
- India Signed agreement with Jubilant FoodWorks for a joint venture to set up stores in India.[45]
- Brazil: DD returns to Brazil at the end of 2011. It is expected a new DD store to be opened in the Plaza Itavuvu Mall, a new shopping center in the city of Sorocaba, São Paulo state. Opening: December 2011. Website: Plaza Itavuvu Mall
- Countries formerly with DD locations
- Australia: Brisbane, Queensland,Australia - Closed due to poor sales in 2001
- Argentina: Formerly in Argentina in the early '90s, closed around 1996.
- Brazil: As Café Donuts, with some different doughnuts and coffees added to the menu
- Guatemala
- Bolivia
- Czech Republic
- Cuba (Guantanamo Bay Naval Base)
- Curaçao
- Dominican Republic
- El Salvador
- Greece: Left Greece in 2009.
- Hungary (All closed)
- Ireland: There were at least two outlets in Dublin. Both closed by 2002. Also one in Cork. Also one in Limerick in 1997, closed by 1999.
- Israel: Dunkin Donuts had outlets in Jerusalem But closed in 2004
- Italy: Entered Italian market in 1999 and left Italy in 2002.
- Japan: Entered Japanese market in 1970 and left Japan in 1998. Japan was the first country to have an International Restaurant. There is one at Kadena Air Base.
- Netherlands: There were Dunkin' Donuts outlets at Amsterdam Centraal Station, Utrecht, near the Amsterdam, Albert Cuyp Market and Amsterdam Schiphol Airport, among other locations.
- Nicaragua
- Poland: There were 18 outlets in total in Warsaw, Gdynia, Cracow, Katowice and Bytom. All closed in 2002.
- Romania
- Trinidad and Tobago: Low Sales
- Turkey In 2008, all the Dunkin' Donuts outlets in Turkey wer emptied, and Dunkin' Donuts left the Turkish market.
- United Kingdom: There were at least eight outlets in the UK: four in London; one at the Merry Hill Shopping Centre; one in Glasgow; one in Aberdeen; one in Bangor, Northern Ireland; and one in Birmingham city centre. All were closed down because of low sales in 2002.
- Venezuela
Notable endorsers
Competitors
References
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- ^ "IPO News: Dunkin' Brands initiates $400 million IPO (by Renaissance Capital)". Renaissancecapital.com. 2011-03-26. http://www.renaissancecapital.com/ipohome/news/Dunkin-Brands-initiates-$400-million-IPO-9516.html. Retrieved 2011-11-25.
- ^ Kowitt, Beth (May 24, 2010). "Dunkin' Brands' Kitchen Crew". Fortune 161 (7).
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- ^ Zagat Buzz Blog: Dunkin' Donuts Launches Royal Wedding-Inspired Sweets, April 25, 2011
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