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Dunkin' Donuts

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Dunkin' Donuts
Company typeWholly owned subsidiary
IndustryFast food
Founded1951
FounderWilliam Rosenberg
HeadquartersDunkin' Brands
130 Royall Street
Canton, Massachusetts, U.S.
Phone: 781-737-3000
Key people
Jon L. Luther, (CEO)
Will Kussell (COO)
Kate LaVelle, (CFO)
ProductsDoughnuts • Coffee • Bagels • Muffins • Breakfast sandwiches
RevenueIncrease$4.4 billion USD (August 2006)
OwnerCarlyle Group, Bain Capital, and Thomas H. Lee Partners
ParentDunkin' Brands
WebsiteDunkinDonuts.com

Dunkin' Donuts is an international donut and coffee retailer founded in 1951 in Quincy, Massachusetts by William Rosenberg. It is now headquartered in Canton, Massachusetts.

Corporate Profile

Facts and figures

File:Former Mister Donut.jpg
A Dunkin' Donuts/Baskin-Robbins co-brand in New Castle, Pennsylvania. One of two Dunkin' Donuts locations in New Castle, this store is a former Mister Donut converted to Dunkin' in 1994 and completely rebuilt in 2003 with the addition of Baskin-Robbins and a drive-thru.

Dunkin' Donuts claims to be the "world's largest coffee and baked goods chain", serving 2.7 million customers per day at approximately 8,000 stores in 30 countries which includes approximately 6,400 Dunkin' Donuts locations throughout the USA.[1] This figure compares with the 15,011 stores of coffee chain Starbucks, whose baked goods are usually prepared out of shop. Most Dunkin' Donuts stores are franchises.[2]

Dunkin' Donuts, along with Baskin-Robbins, is owned by Dunkin' Brands Inc. (previously Allied Domecq Quick Service Restaurants, 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 U.S., 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.

Most of their business competition comes from small locally owned stores, Krispy Kreme doughnuts and Starbucks; in Canada and parts of the Great Lakes region, 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.

In the province of Quebec, Alimentation Couche-Tard owns the master franchise to Dunkin' Donuts. In the United States, that company's Circle K convenience stores also share some locations with Dunkin' Donuts. However, Dunkin' Donuts began to close several locations in Quebec within the 2000s because of competitor Tim Hortons opening many Quebec locations. Some Dunkin' Donuts locations continue to open in Quebec, most recently at the Lionel-Groulx metro station. Couche-Tard agreed in August 2008 to terminate its role as master franchisee within 12 to 18 months.[3]

Expanding its operations

In April 2009 the company opened its first hotel restaurant location at the Great Wolf Lodge(R) in Concord, North Carolina. The move is the first of its plans to expand its operations into lodging facilities, airports and sports arenas. Store models will be available for any type of property in these locations and include full retail shops, kiosks and self-serve hot coffee stations.[4]

In June 2009, Dunkin' Donuts announced the opening of at least 12 Dunkin' Donuts restaurants in the Dayton, Ohio region. All twelve of the stores are set to be opened by 2011.[5]

Products

Any of the above sandwiches may be served on any bagel, a croissant, an English muffin, waffle, biscuit or any other available bread carrier.

  • Hash browns
  • Entrées:
    • Flatbread sandwiches - available with turkey, bacon, and Cheddar; ham and Swiss; three cheese; and egg white with vegetables or egg white with turkey sausage
  • Coffee - Over the past several years, DD has heavily emphasized its coffee offerings and related coffee products, enough that the company added a Dunkin' Donuts coffee cup to its logo in 2003. This is due to the company selling more coffee products than donuts in recent years. It now offers several types and styles of coffee drinks, in hot and iced forms.
    • Bulk Coffee - DD sells its coffee and flavored coffee in bulk packaging for in-home consumer preparation. It offers whole bean and ground varieties in 1/2 pound, 1 pound, and 2 ounce tester sizes. It is sold at most DD restaurants, online from the DD web site, and at other retail outlets such as supermarkets, gift shops, and convenience stores.
    • Espresso, Cappuccino, and Lattes - These traditional Italian style coffee beverages are available at most of its locations.
    • Flavored Coffee - The flavor options are: French Vanilla, hazelnut, cinnamon, toasted almond, caramel, coconut, raspberry, blueberry, and chocolate. Each of these flavors can be added to any of their coffee beverages, allowing the possibility of combining more than one flavor.
    • Iced Lattes - Their two varieties are Iced Caramel Swirl and Iced Mocha Swirl. Each of these drinks are made of espresso, caramel/mocha syrup, and milk and is topped with whipped cream and more syrup.
    • Latte Lite Espresso is combined with skim milk and then Splenda for sweetness.
    • Turbo - The product adds an extra shot of espresso to its contents. Its individual product slogan says that "Turbo provides you the boost you need to power you through your day."
  • Other hot beverages
    • Hot chocolate
    • Tea
    • Vanilla Chai
    • White Hot Chocolate - The drink is slightly richer than normal hot chocolate. Made with cocoa butter instead of normal cocoa, it is a thicker beverage with a slight buttery flavor and traces of vanilla. It is optionally served with whipped cream.
    • Dunkaccino - A blend of coffee and hot chocolate flavors
  • Cold beverages
    • Coolattas are similar to a slush; a rough ice chop, combined with flavors. Available flavors include Tropicana orange juice, strawberry, coffee, and vanilla bean.
    • Iced teas, recently introduced, are a line of freshly brewed iced teas; like its coffee products they are available in several varieties including regular, southern sweet, and flavored varieties.
    • Smoothies are made with fruit concentrate and low fat yogurt. Flavors include strawberry-banana, wildberry, mango-passion fruit, tropical fruit, and reduced sugar berry.

Dunkin' Deli

Dunkin' Delis are found in some Dunkin' Donuts in the United States. These delis offer a selection of sandwiches, salads, and soups,[6] and are the result of the former ownership of the sandwich chain Togo's by Dunkin' Donuts' parent company.[7]

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.[8] In addition to 400 US stores that took part in a four-month blind test, the low trans fat menu is available nationwide since October 15, 2007. International locations are expected to begin using the new oil within the next few years.[9]

2009 salmonella scare

After an inspection of one of its suppliers' plants found that it may have been contaminated with salmonella, Dunkin' Donuts temporarily pulled its hot chocolate and Dunkaccino beverages from its menu in July 2009. [10]

Advertising

File:America is dunking.JPG
Dunkin Donuts sign

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, they have a close relationship with the Boston Red Sox and the New England Patriots, making new commercials at the start of each team's season for promotions.

Until recently, Dunkin' Donuts' slogan was America Runs On Dunkin.' In March 2009, the company unveiled an alternate slogan, "You 'Kin Do It!", and launched a $100+ million ad campaign to promote it. [1]. 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.[11] Online marketing, often leveraging the Boston Red Sox and other New England icons, is also a significant campaign component.[12]

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 catch phrase "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. Vale died of complications from diabetes at age 83 on December 24, 2005, in New York City.
  • Since Dunkin' Donuts changed their slogan in 2007 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."[13][14] The whole commercial was interpreted as a deliberate mocking of Starbucks.[15][14] 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."[14]
  • 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.
  • As of 2007, John Goodman can now be heard as the new voice of Dunkin' Donuts commercials.[16]
  • 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.[17] Dunkin Donuts pulled that commercial off the air,[18] leading to more criticism of the company's perceived kowtowing to special interests.[19]
  • Since 2005, Joey De Leon started endorsing Dunkin' Donuts Philippines starring in funny commercials, up until now.
  • Since January 2009, Dunkin' Donuts launched its "You Kin' Do It" campaign.

Promotions

In early 2007, Dunkin' Donuts b Score! that featured tear-off game pieces on their coffee cups.

Also created was an Easy-Bake Oven Recipe for children to cook and create their own colorful donut concoctions at home.

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 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.

Licensing

Criticism

Dunkin' Donuts has come under fire from some of its franchisees for allegedly strong-arming them out of a 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. 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.[20]

Locations

Planned expansions
Countries formerly with DD locations

See also

Competitors

References

  1. ^ ""Dunkin' Donuts". {{cite web}}: Text "Dunkin' Brands"" ignored (help)
  2. ^ Dunkin donuts franchise purchase
  3. ^ Couche-Tard press release, September 2, 2008
  4. ^ Dunkin' Donuts Enters Lodging Market With Opening of New Store at Great Wolf Lodge, April 14, 2009
  5. ^ Dunkin' Donuts Expanding to Dayton Market, June 21, 2009
  6. ^ ""Dunkin' Donuts Nutrition Facts"". Retrieved 2009-05-19.
  7. ^ ""Dunkin' Donuts serves up delicatessen concept"". Retrieved 2009-05-19.
  8. ^ ""Dunkin' Donuts Dumping Most Trans Fats"". Retrieved 2007-08-27.
  9. ^ ""Dunkin' Donuts Announces Zero Grams Trans Fat Menu to be Available Nationwide by October 15". Retrieved 2007-08-27.
  10. ^ Elan, Elissa (July 1, 2009). "Dunkin' pulls two drinks over salmonella concerns". NRN.com.
  11. ^ ""Dunkin' Donuts Bows $100MM "You Kin' Do It!" Campaign". Retrieved 2009-05-31.
  12. ^ ""adverlicio.us ! online advertising archive". Retrieved 2009-05-31.
  13. ^ Adweek: Hill Unveils Fresh Flight for Dunkin' (Sept 11 2006)
  14. ^ a b c Jan Freeman (2006-09-13). "Defining 'manhood,' translating 'latte'" (2007-03-01). Brainiac. Boston Globe. Retrieved 2007-03-01.
  15. ^ Jesse Noyes (2006-09-13). "Java gibe: Ads mock Starbucks". Abstract. Boston Herald. Retrieved 2007-03-01.
  16. ^ John Goodman (I) - Other works
  17. ^ Clifford, Stephanie (May 30, 2008), "For Dunkin,' a Tempest in an Iced-Coffee Cup", The New York Times{{citation}}: CS1 maint: date and year (link)
  18. ^ Chicago Tribune:"Rachael Ray Dunkin' Donuts spot pulled." 28 May 2008[dead link]
  19. ^ CIndependent: "Dunkin' Donuts accused of promoting terrorism." 31 May 2008.
  20. ^ New York Daily News: Dunkin' Donuts business practices have lots of holes

External links

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