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| Type | Wholly owned subsidiary |
|---|---|
| Founded | 1950[1] |
| Founder(s) | William Rosenberg |
| Headquarters | Dunkin' Brands 130 Royall Street Canton, Massachusetts, U.S. Phone: 781-737-3000 |
| Area served | Worldwide |
| Key people | Jon L. Luther, (CEO) Kate LaVelle, (CFO) |
| Industry | Fast food |
| Products | Doughnuts • Coffee • Bagels • Muffins • Breakfast sandwiches |
| Revenue | ▲$5.5 billion USD (2008)[2] |
| Owner(s) | Carlyle Group, Bain Capital, and Thomas H. Lee Partners |
| Parent | Dunkin' Brands |
| Website | DunkinDonuts.com |
Dunkin' Donuts is an international donut and coffee retailer founded in 1950 in Quincy, Massachusetts by William Rosenberg.[1] It is now headquartered in Canton, Massachusetts.
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Dunkin' Donuts claims to be the "world's Biggest coffee and baked goods chain", serving 2.7 million customers per day at approximately 8,800 stores in 31 countries which includes approximately 6,400 Dunkin' Donuts locations throughout the USA.[3] 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.[4] There are no Dunkin' Donuts stores anywhere in the state of California, and a notice on the company's web site states that franchises are not being offered in that state. No explanation is given as to why. Only 75 franchisees exist west of the Mississippi River, mostly in Arizona, Nevada and Texas.[5]
Dunkin' Donuts, along with Baskin-Robbins, is 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 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.[6]
On October 4, 2009, William Kussel stepped down as CEO and President of Dunkin' Brands, after 15 years with the company.[7]
Dunkin' Delis are found in some Dunkin' Donuts in the United States. These delis offer a selection of sandwiches, salads, and soups,[11] and are the result of the former ownership of the sandwich chain Togo's by Dunkin' Donuts' parent company.[12]
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.[13] 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 18, 2007. International locations are expected to begin using the new oil within the next few years.[14]
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%.
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.[15] Online marketing, often leveraging the Boston Red Sox and other New England icons, is also a significant campaign component.[16]
The original Dunkin' Donuts slogan was Sounds Good, Tastes Even Better.
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.[25]
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.[26]
In 2009, there was a campaign for people to "Create Dunkin's Next Donut". Jeff Hager of Hoover, Alabama was selected for his glazed sour cream cake donut, topped with chopped Heath Bar, titled "Toffee For Your Coffee". Hager won 1 check for $12,000 and his donut was available in Dunkin' Donuts locations for a limited time in the Fall of that year.[27] In 2010, there was a campaign for people to "Create Dunkin's Next Donut". Tom Hulcer of Ontario, Canada was selected for his glazed oreo donut, with vanilla frosting, titled "Double Double Vanilla Trouble". He won 1 check for $12,000 and his donut was available in Dunkin' Donuts locations for a limited time in the Fall of that year.[28]
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.[30]
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Competitors
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