Dunkin' Donuts

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Dunkin' Donuts
TypeWholly owned subsidiary
IndustryFood and Beverage
Founded1950[1]
Founder(s)William Rosenberg
Headquarters130 Royall Street
Canton, Massachusetts, United States
Area servedWorldwide
Key peopleNigel Travis, CEO
Neil Moses, CFO
ProductsHot beverages
Iced beverages
Frozen beverages
Bakery goods
Sandwiches
RevenueIncrease$5.5 billion USD (2008)[2]
ParentDunkin' Brands
Websitewww.dunkindonuts.com
 
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Dunkin' Donuts
TypeWholly owned subsidiary
IndustryFood and Beverage
Founded1950[1]
Founder(s)William Rosenberg
Headquarters130 Royall Street
Canton, Massachusetts, United States
Area servedWorldwide
Key peopleNigel Travis, CEO
Neil Moses, CFO
ProductsHot beverages
Iced beverages
Frozen beverages
Bakery goods
Sandwiches
RevenueIncrease$5.5 billion USD (2008)[2]
ParentDunkin' Brands
Websitewww.dunkindonuts.com
The original Dunkin' Donuts in Quincy, Massachusetts, after its renovation in the 2000s

Dunkin' Donuts is an American global doughnut company and coffeehouse chain based in Canton, Massachusetts. It was founded in 1950 by William Rosenberg in Quincy, Massachusetts.[1] Since its founding, the company has grown to become one of the largest coffee and baked goods chain in the world, with 15,000 restaurants in 37 different countries.[3] The chain has grown to include over 1,000 items on their menu, including doughnuts, bagels, other baked goods, and a wide variety of hot and iced beverages.[4][5] The logo is two Ds side by side in orange and hot pink, placed on a coffee cup next to the words "Dunkin' Donuts" written in orange and hot pink.

The company primarily competes with Starbucks, as over half the company's business is in coffee sales, and with Krispy Kreme for doughnut sales.[6]

History[edit]

A Dunkin' Donuts shop in Islamabad, Pakistan

In 1948, William Rosenberg and Stephen So opened their first restaurant, Open Kettle, in Quincy, Massachusetts before renaming it Kettle Donuts in 1949, and then Dunkin' Donuts in 1950.[7] The idea for the chain came about after previous experiences Rosenberg had selling food in factories and construction sites, where doughnuts and coffee were the two most popular items.[3] By 1955, Rosenberg started selling the franchise of Dunkin' Donuts to others. In 1959, the company began growing, which led Rosenberg to lobby for Dunkin' Donuts at the International Franchise Association. In 2002, Rosenberg passed away at the age of 86 from bladder cancer in his home in Mashpee, Cape Cod.[3]

In 1963, the chain's 100th restaurant opened. In 1972, the company released Munchkins, a popular item that resembles what the hole in the center of a doughnut would look like. The chain grew to 1,000 restaurants in 1979, 2,000 in 1990, and 3,000 in 1992. In 1996, bagels were introduced to the Dunkin' Donuts menu, followed by breakfast sandwiches a year later.[8]

In 2004, the company's headquarters were relocated to Canton.[9] The following year, four-time James Beard Foundation Award nominee Stan Frankenthaler was appointed the company's first Executive Chef/Director of Culinary Development.[10] In 2006, Dunkin' Donuts began using the slogan "America Runs on Dunkin" which continues to be used in many advertisements.[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 composting (which "will eat the waste produced by the store, such as coffee grounds and paper products ... convert[ing it] into fertilizer for local farms and gardens"), water-efficient plumbing fixtures, and the use of well water rather than potable water for all irrigation.[11] 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.[12]

In 2010, Dunkin' Donuts' global system-wide sales were $6 billion.[13] 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.[14]

In April 2012, Dunkin' Donuts switched its beverage products to The Coca-Cola Company having served PepsiCo products in response to rivals expanding PepsiCo products to the United States in 2011. The only exception was PepsiCo's Gatorade. Locations in Canada were unaffected by the switch, although a location in Montreal's Eaton Centre served Nestea along with mostly PepsiCo products.[citation needed]

Dunkin' Donuts, along with Baskin-Robbins, is owned by Dunkin' Brands Inc. (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 it 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.

The company's largest competitors include Krispy Kreme donuts, Starbucks, and small locally owned doughnut shops. In Canada Tim Hortons is a major competitor. In Colombia, Donut Factory had been its local rival, and Dunkin' has adapted its doughnut selection to local tastes.[15] 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' controls the trademark rights to the Mister Donut trademark through various new and amended older trademark registrations with the USPTO.[citation needed]

Products[edit]

A display of donuts at a Dunkin' Donuts franchise.

Dunkin' Donuts has several varieties.[4][5]

  • Iced beverages
    • Iced coffee
    • Iced latte
    • Iced teas
  • Sandwiches
    • Oven-toasted sandwiches
    • Big N' Toasted
    • Wraps
    • Glazed Donut Breakfast Sandwich

Since October 18, 2007, Dunkin' Donuts locations in the United States have reduced trans fats from their menu items by switching to a blend of palm, soybean, and cottonseed oils.[16] International locations are expected to adopt the change in the coming years.[17] The DDSmart menu features items that are reduced in calories, fat, saturated fat, sugar, or sodium by no less than 25 percent.

Nutritional value[edit]

Generally, food items from Dunkin' Donuts do not have over 600 calories. The sodium content can be quite high (ranging from 260 mg to 1,310 mg).[18]

Dunkin' Donuts' DDsmart Menu features "better-for-you" food options. This menu can help customers avoid high-caloric, high-sodium foods and choose somewhat healthier food options.[19]

Advertising[edit]

[edit]

One early logo that Dunkin' Donuts registered with the United States Patent and Trademark Office 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, 1964.[20]

Before that a script version of its 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.[21]

Slogans[edit]

Commercials[edit]

Promotions[edit]

Dunkin' Donuts truck

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

Easy Bake Oven, a product of Hasbro, created product recipes based on Dunkin' Donuts products.[30]

In 2007, Dunkin' created a promotional campaign centered on 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 its stores for three hours on February 26, Dunkin' Donuts locations offered a 99 cent latte, cappuccino, and espresso promotion from 1–10 pm.[31]

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 doughnut, 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 banana-filled doughnut with chocolate icing, topped with Reese's Peanut Butter Cups shavings. Each won a check for $12,000 and their doughnuts were available in Dunkin’ Donuts locations for a limited time.[32]

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.[33]

In April 2011, Dunkin' Donuts launched a new doughnut and special cake in honor of the wedding of Prince William and Catherine Middleton in England on April 29, 2011.[34]

In July 2012, Dunkin' Donuts produced a new doughnut and a new Coolatta to celebrate the 100th year anniversary of the Oreo cookie. It has added an Oreo cream filled doughnut and a vanilla and coffee coolatta with Oreo in it as part of the promotion.[35]

In August 2013, Long Island Dunkin' Donuts restaurants launched t-shirts to help rebuild the community from Hurricane Sandy that occurred in October 2012. The shirts contain the phrase "REBUILDD Long Island," and portions of the proceeds are donated to Long Island Cares Inc. The campaign was important to Long Island locations and regional food banks. These locations have shown their support by helping the Long Island community days after the storm and has continued their efforts through the "REBUILDD Long Island" t-shirts.[36]

Affiliations[edit]

Dunkin' Donuts has been featured in many films and has a close relationship with major sports teams, such as the Boston Red Sox and the New England Patriots, making 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'", even though most of its stores are concentrated on the east coast, with only two west-coast locations -- (Portland, Oregon), and a location on the Marine Corps base at Camp Pendleton (opened May 2012), with limited public accessibility.[37][38] In March 2009, the company unveiled an alternate slogan, "You 'Kin Do It!", and launched a more than $100 million ad campaign to promote it.[39] The campaign, which was to run through 2009, included radio, print and outdoor advertising, in addition to in-store point-of-purchase, special events, and sports marketing.[40]

The original Dunkin' Donuts slogan was Sounds Good, Tastes Even Better.

Controversy and criticism[edit]

In 1997, Dunkindonuts.org was founded by a customer, for disgruntled consumers and employees to lodge complaints about the company. The site appeared before the company's own website in many search engines, and received national media coverage before being purchased by Dunkin' Donuts in 1999.[41]

Dunkin' Donuts has been criticized by some of its franchisees for allegedly coercing 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 franchisees 12 times. However, these figures do not include arbitrations, which Subway, McDonald's and Dunkin' Donuts use 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.[42]

In 2009, the company temporarily stopped the sale of two of its products, the Dunkaccino and hot chocolate, after concern of a possible salmonella poisoning at a supplier's facilities. Dunkin' Donuts claims that none of the beverages were contaminated, but the recall was out of safety for the consumer.[43]

In 2009, the Kainos Partners Holding Co., which owned and operated 56 Dunkin' Donuts, filed for bankruptcy. The company claimed to owe an amount between $10 and $50 million. Bart Thorne said that one of the primary causes for bankruptcy was the economic recession that was occurring at the time.[44]

In May 2010, Dunkin' Donuts was criticized for advertising "Free Iced Coffee Day" on its national Facebook page, which only took place in 13 cities.[45] 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.[46]

In 2013, the Dunkin' Donuts chain in Thailand used an advertisement that contained a photograph of a woman in black face-paint, in order to promote its new chocolate flavored donuts. The company was criticized for the advertisement, with the Human Rights Watch calling the advertisement “bizarre and racist”. The headquarters in the United States apologized for the advertisement.[47]

Locations[edit]

  Current locations
  Military bases only
  Planned future locations
  Former locations

Dunkin' Donuts is a subsidiary of Dunkin' Brands, a franchiser of quick service restaurants serving hot and cold coffee and baked goods. Dunkin' Donuts headquarters is located at 130 Royall St, Canton, Massachusetts, which is also the headquarters for Baskin-Robbins. On December 29, 2012, there were 10,479 Dunkin' Donuts locations where products were distributed: 7,306 were in the United States and 3,173 were in other countries.[48] Dunkin' Donuts is continuing to grow by adding more locations around the U.S. In July 2013, Dunkin' Donuts opened its 500th restaurant in New York City. This location is combined with a Baskin-Robbins restaurant.[48] Dunkin' Donuts expanded to the west coast of the United States. The company has agreed to open 18 restaurants in Orange County, California in 2015. There will also be eight restaurants developed in North Inland Empire, California, with the first location opening 2015.[49] This figure compares with the 17,009 stores of coffee chain Starbucks. Nearly all of Dunkin' Donuts locations are franchisee owned and operated.[50] In the U.S., there are only 78 franchisees west of the Mississippi River, mostly in Iowa,[51][52][53][54] Arizona, Nevada, New Mexico, and Texas.

In the past decade, Dunkin' Donuts has opened many shops in both the Phoenix and Las Vegas metropolitan areas. In 2013, Dunkin' Donuts opened their first shops in the Salt Lake City Area, bringing the brand to Utah for the first time ever. As of November 2013, there are two stores in California - one located on the Camp Pendleton military base, and the second in Barstow at the historic Barstow Station building. The company is expecting to open upwards of 1,000 stores starting in 2015.[55][56] Within its Northeast home base, however, Dunkin' Donuts is very popular, and particularly dominant within New England. In addition to its stand-alone shops, Dunkin' Donuts shops can be found in many gas stations, supermarkets, mall and airport food courts, and Walmart stores.

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 in Canada), depending on business that day, both products can be bought at the same counter (usually the Dunkin' counter), much like the Yum! Brands stores.[citation needed]

In Brazil, Dunkin' Donuts opened its first building in 1980.[57] Most ended up closing the network through the points for the company Café Donuts. In 2013, it plans to open 25 franchises in the country.[58]

One of the last remaining Dunkin' Donuts locations in Canada at Montreal's Place Ville-Marie

Canadian decline[edit]

In Canada Dunkin' Donuts has lost a substantial percent of its market share. In recent years[when?] the chain has disappeared from all regions of Canada, except the province of Quebec. Its decline is most apparent in Quebec, where the chain once had 210 stores but had only five stores left as of early 2013, the last franchisees in the country.[59] One of the main reasons for the decline was competition with Tim Hortons, similar to Tim Horton's own decline in the northeastern United States due to heavy competition from Dunkin' Donuts. A group of franchisees won a C$16.4 million civil court judgement against the parent company for failing to adequately promote the brand in Canada.[60]

Japanese decline[edit]

Dunkin' Donuts began business in Japan in 1970 as the first Asian country to open its stores. The Japanese chain was owned by a joint venture between the Saison Group, Yoshinoya, and the Japanese subsidiary of the Compass Group named Seiyo Food Systems. After 28 years of operating in Japan, Dunkin' Donuts ceased business there in 1998 due to declining sales and poor performance. All of the non-military base locations were either closed or converted to Mister Donut locations. Dunkin' Donuts still has locations in United States military bases, which are open only to military personnel.

U.S. West Coast expansion[edit]

On January 16, 2013, Nigel Travis, Dunkin' Donuts' CEO, announced that the Dunkin' Donuts franchises will be available in California beginning in 2015.[61] The chain also plans to expand into more stores in Texas by 2015.[62]

Current[edit]

Former[edit]

Expansion[edit]

Notable endorsers[edit]

See also[edit]

References[edit]

  1. ^ a b "Dunkin' Donuts: About Us". Dunkindonuts.com. 2006-07-27. Retrieved 2010-12-30. 
  2. ^ Sellen, Tom (2009-03-16). "Coffee Connoisseurs Sniff Out Cheaper, No-Frills Fix". The Wall Street Journal. 
  3. ^ a b c . New York Times. 2002-09-23 http://www.nytimes.com/2002/09/23/business/william-rosenberg-86-founder-of-dunkin-donuts.html. Retrieved 2013-10-05.  Missing or empty |title= (help)
  4. ^ a b Kowitt, Beth (May 24, 2010). "Dunkin' Brands' Kitchen Crew". Fortune 161 (7). 
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  9. ^ "History of Dunkin' Donuts". Boston.com. 2011-07-26. Retrieved 2013-03-03. 
  10. ^ "Dunkin' Brands names Stan Frankenthaler as its first executive chef / Director of Culinary Development". 
  11. ^ "Dunkin' Donuts Opens First 'Green' Store". Dunkin' Donuts. 17 October. 
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  14. ^ "2011 Brand Keys Customer Loyalty Engagement Index". 
  15. ^ "Why Dunkin Donuts lures Colombians away from local brands?". 
  16. ^ Jewell, Mark (2007-08-27). "Dunkin' Donuts Dumping Most Trans Fats". The Washington Post. Retrieved 2007-08-27. 
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  20. ^ "USPTO #72054025". United States Patent and Trademark Office. 
  21. ^ "USPTO #76035918". United States Patent and Trademark Office. 
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  33. ^ Dunkin' Donuts Renews Celtics Sponsorship
  34. ^ Zagat Buzz Blog: Dunkin' Donuts Launches Royal Wedding-Inspired Sweets, April 25, 2011
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  52. ^ Boeckman, Joanne (9 January 2012). "Dunkin’ Donuts is adding eight more locations to central Iowa". Des Moines Register. Retrieved 4 May 2013. 
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  54. ^ Johnson, Patt (29 November 2012). "Dunkin’ Donuts to open a store at the airport". Des Moines Register. Retrieved 4 May 2013. 
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  56. ^ [1]
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  61. ^ [2]
  62. ^ http://www.nasdaq.com/article/dunkin-texas-expansion-plans-underway-analyst-blog-cm278116
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  64. ^ "Dunkin’ Donuts dunks into Russia". RT. Retrieved 2010-08-19. [dead link]
  65. ^ Rob Gronkowski moonlights at Dunkin’ Donuts | Shutdown Corner - Yahoo! Sports

External links[edit]