Dunkin Donuts
An Overview of Dunkin' Donuts
There are few names that are as recognizable to morning commuters as Dunkin' Donuts. The nationwide fast-food style purveyor of fried donut pastries, coffees, bagels and a limited assortment of other breakfast and snack items is a household name that has achieved a rarified level of cultural and economic success in the United States. However, like any company, Dunkin' Donuts is not impervious to the challenges wrought by competitive markets, economic recession and shifts in the cultural paradigm where food retail and food services are concerned. The discussion hereafter offers a concise overview of the company with consideration to its balance between sustaining its existing success without resting on its laurels.
Brief Background:
It is appropriate to begin with a brief look at the background of the company that would go on to be most explicitly associated with the doughnut. According to Daszkowski (2009), the company traces its origins to a Bostonian entrepreneur named William Rosenberg, who invested $5,000 in a local coffee break snack delivery company called Industry Luncheon Services. Rosenberg parlayed the success of Industrial Luncheon into the Open Kettle coffee and donut shop before, in 1950, opening the first Dunkin' Donuts in Quincy, Massachusetts. (Daszkowski, p. 1) As Daszkowski reports the success of Dunkin' Donuts was almost instantaneous, with the Quincy location performing well enough to encourage franchising within only five years. Daszkowski notes that "by 1963, there were over 100 Dunkin Donuts shops open and by 1979 over 1000 locations open." (Daszkowski, p. 1)
Key Success Factors:
Dunkin Donuts' long-term success is largely driven by a business model that promotes franchising. This allows for a more centralized coordination of marketing efforts than most of its competitors are capable of achieving. According to Taulli (2011), "almost all Dunkin' Donuts' locations are franchises. Because of this, the company can spend more time on marketing and menu innovation. What's more, the franchise model is fairly capital-light, which allows more resources for expansion of new locations." (Taulli, p. 1)
This also accounts for the second of Dunkin'...
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