Dunkin' Donuts is the number one retailer of hot regular coffee-by-the-cup in America, selling 2.7 million cups a day, nearly one billion cups a year. Dunkin' Donuts has more than 7,200 restaurants in 30 countries worldwide. Based in Canton, Massachusetts, Dunkin' Donuts is a subsidiary of Dunkin' Brands, Inc1. Despite what the name of the company suggests, Dunkin’ Donuts’ major revenue generator is beverage sales which accounts for approximately 70%, as compared to donuts that generate only 14% of the sales2.
“The company's mission is to thrill customers, enrich stakeholders and build powerful brands3.”
Recent Business News
In recent undertakings, the company is expanding on a large scale by launching its most aggressive expansion plan to triple the number of units from 5,300 to 15,000 by the year 20204. Starting October 2006 and ending September 2007, Dunkin' Donuts signed development agreements totaling nearly 1,600 new restaurants. In the past month, the company announced its plans to open franchised restaurants in Las Vegas, Austin, Dallas, Phoenix, Tallahassee and Panama City.
Another recent development is the implementation of Voxware5, which is a voice-directed order picking system. It serves to increase the efficiency of operations for the distribution centers within the company. Dunkin’ Donuts’ facility mangers in the Mid-Atlantic distribution center recently shared their success on this very system. As of this summer, three more distribution centers are running on this system and experiencing similar productive gains6.
In 1950, William Rosenberg, the founder, opened the first Dunkin' Donuts shop in Quincy, Massachusetts. The first franchised Dunkin' Donuts shop in America opened in the Webster Square area of Worcester, Massachusetts in 1955. It was formerly owned and operated by Allied Domecq. It was then bought out by Pernod Ricard after which the quick service brand was broken off to create Dunkin’ Brands, the current owner of Dunkin’ Donuts7.
Goals and Objectives
The objective of Dunkin’ Brands is to be the Quick Quality leader in its industry, offering a higher evolution of the standard quick dining experience, with innovative product choices at the right price. Despite being a fast-food chain, Dunkin donuts prides itself on serving quality food. To achieve this objective, the company is focused on a couple of core strategies such as, expanding the Dunkin’ Donuts brand both nationally, and internationally.
Dunkin' Donuts also offer a range of development opportunities to franchisees. They are looking for multi-unit franchisees that will commit to a five-restaurant minimum, who possess a net worth of at least $1.5 million and minimum liquidity of $750,000. Dunkin' Donuts' strategy for new market expansion focuses on identifying the right franchisees willing to commit the resources to build a network of restaurants, rather than just opening one at a...