| Type | Wholly owned subsidiary |
|---|---|
| Industry | Food and Beverage |
| Founded | 1950[1] |
| Founder(s) | William Rosenberg |
| Headquarters | 130 Royall Street Canton, Massachusetts, U.S. |
| Area served | Worldwide |
| Key people | Nigel Travis, CEO Neil Moses, CFO |
| Products | Hot beverages Iced beverages Frozen beverages Bakery goods Sandwiches |
| Revenue | |
| Parent | Dunkin' Brands |
| Website | www.dunkindonuts.com |
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] Its logo is two D's side by side 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.[3]
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In 1948, William Rosenberg and Stephen So opened his first restaurant, Open Kettle, in Quincy, Massachusetts before renaming it Dunkin' Donuts in 1950.[4]
In 2004, the company's headquarters were relocated to Canton.[5] The following year, four-time James Beard Foundation Award nominee Stan Frankenthaler was appointed the company's first Executive Chef/Director of Culinary Development.[6]
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.[7] 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.[8]
In 2010, Dunkin' Donuts' global system-wide sales were $6 billion.[9] 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.[10]
In April 2012, Dunkin' Donuts switched its beverage products back to The Coca-Cola Company having served PepsiCo products in response to similar 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 serves Nestea along with mostly PepsiCo products.
Dunkin' Donuts, along with Baskin-Robbins, is co-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 donut shops. In Canada and parts of the northern United States, 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.[11] 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.
Dunkin' Donuts has more than 1,000 doughnut varieties along with other products.[12][13]
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.[14] International locations are expected to adopt the change in the coming years.[15] The DDSmart menu features items that are reduced in calories, fat, saturated fat, sugar, or sodium by no less than 25 percent.
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.[16]
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.[17]
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.[26]
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.[27]
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.[28]
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.[29]
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.[30]
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 coolata with Oreo in it as part of the promotion.[31]
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.[32][33] 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.[34] 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.[35] Online marketing, often leveraging the Boston Red Sox and other New England icons, is also a significant campaign component.[36]
The original Dunkin' Donuts slogan was Sounds Good, Tastes Even Better.
The Dunkin' Donuts Center in Providence, Rhode Island is the former Providence Civic Center. It is the home arena for the American Hockey League Providence Bruins and the home basketball court for the Big East Conference Providence College Friars.[37]
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 franchises 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.[38]
In May 2010, Dunkin' Donuts corporate was criticized for advertising "Free Iced Coffee Day" on its national Facebook page, which only took place in 13 cities.[39] 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.[40]
At the end of 2011, there were 10,083 Dunkin' Donuts stores worldwide, including 7,015 franchised restaurants in 36 United States and 3,068 international shops in 32 countries.[41] This figure compares with the 17,009 stores of coffee chain Starbucks, whose baked goods are usually prepared out of shop. Nearly all of Dunkin' Donuts locations are franchisee owned and operated.[42] Only 77 franchisees exist west of the Mississippi River, mostly in Iowa, Arizona, Nevada, New Mexico, and Texas.[43][44][45][46][47] Within its Northeast home base, however, Dunkin' Donuts is particularly dominant and 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.
In Canada Dunkin' Donuts has lost a substantial percent of its market share. In recent years the franchise 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 now only has six stores left, the last franchisees in the country.[48] One of the main reasons for the decline was competition with Tim Hortons. Dunkin' Donuts did such an inadequate job of promoting its brand in Canada that a group of franchisees won a C$16.4 million civil court judgement against the parent company.[49]
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